H
harddriver
Well-known member
This is why the USA is 34 Trillion in debt, and anywhere from 87 trillion to 222 trillion for unfunded liabilities depending on who does the analysis.
Washington has been able to print whatever it wanted since.....................
Analysis from George Mason University for fiscal year 2012
file:///C:/Users/User/Downloads/debt-in-perspective-analysis.pdf
The unfunded liabilities of Social Security, Medicare, and Medicaid are often omitted from
discussions about the large size of US public debt. Once these are taken into consideration, it
becomes clear that the US government is already bankrupt.
This chart places the US debt into proper perspective by comparing various estimates of the
nation’s unfunded liabilities to the official debt and deficit estimates.
Fiscal policy discussions generally focus on the current year’s budget numbers: $1.0 trillion
budget deficit and $16.0 trillion national debt.
As alarming as these numbers are, they fail to account for the far greater fiscal challenges of
unfunded liabilities. Here is some key evidence from various studies:
* Former chairman of the SEC Chris Cox and former chairman of the House Ways &
Means Committee Bill Archer (2012) report roughly $87 trillion in unfunded liabilities
using data from the Medicare and Social Security Trustees’ Reports. Their measures
account for the unfunded liabilities—including Social Security, Medicare, federal
workers’ pensions—in addition to the official debt.
* Boston University economist Laurence Kotlikoff calculates a “fiscal gap” amount of
$222 trillion using the Congressional Budget Office’s alternative long-term budget
forecast. The fiscal gap measure takes into consideration the present value of all the
expenditures now through the end of time (including servicing the official debt) and
subtracts all the projected taxes from that amount.
expenditures now through the end of time (including servicing the official debt) and
subtracts all the projected taxes from that amount.
* This means that the government would have to invest $87 trillion or $222 trillion right
now in something that will earn a certain positive rate of return in order to meet its
future obligations, mainly with respect to entitlement programs.
* Both alternative debt figures dwarf the $16 trillion official debt figure, even when you
add the $55 trillion Treasury estimate for unfunded liabilities to total $71 trillion.
This money is not due in the future; it’s like a credit card bill the country owes right now. If we
don’t pay interest on it, the debt will continue to accumulate. Addressing our unfunded liabilities
problem requires fundamental entitlement reform and reductions in federal spending.
Veronique de Rugy expounds on the urgency of the US debt problem at Reason
De Gaulle predicted the dollar crisis in 1965
Washington has been able to print whatever it wanted since.....................
Analysis from George Mason University for fiscal year 2012
file:///C:/Users/User/Downloads/debt-in-perspective-analysis.pdf
The unfunded liabilities of Social Security, Medicare, and Medicaid are often omitted from
discussions about the large size of US public debt. Once these are taken into consideration, it
becomes clear that the US government is already bankrupt.
This chart places the US debt into proper perspective by comparing various estimates of the
nation’s unfunded liabilities to the official debt and deficit estimates.
Fiscal policy discussions generally focus on the current year’s budget numbers: $1.0 trillion
budget deficit and $16.0 trillion national debt.
As alarming as these numbers are, they fail to account for the far greater fiscal challenges of
unfunded liabilities. Here is some key evidence from various studies:
* Former chairman of the SEC Chris Cox and former chairman of the House Ways &
Means Committee Bill Archer (2012) report roughly $87 trillion in unfunded liabilities
using data from the Medicare and Social Security Trustees’ Reports. Their measures
account for the unfunded liabilities—including Social Security, Medicare, federal
workers’ pensions—in addition to the official debt.
* Boston University economist Laurence Kotlikoff calculates a “fiscal gap” amount of
$222 trillion using the Congressional Budget Office’s alternative long-term budget
forecast. The fiscal gap measure takes into consideration the present value of all the
expenditures now through the end of time (including servicing the official debt) and
subtracts all the projected taxes from that amount.
expenditures now through the end of time (including servicing the official debt) and
subtracts all the projected taxes from that amount.
* This means that the government would have to invest $87 trillion or $222 trillion right
now in something that will earn a certain positive rate of return in order to meet its
future obligations, mainly with respect to entitlement programs.
* Both alternative debt figures dwarf the $16 trillion official debt figure, even when you
add the $55 trillion Treasury estimate for unfunded liabilities to total $71 trillion.
This money is not due in the future; it’s like a credit card bill the country owes right now. If we
don’t pay interest on it, the debt will continue to accumulate. Addressing our unfunded liabilities
problem requires fundamental entitlement reform and reductions in federal spending.
Veronique de Rugy expounds on the urgency of the US debt problem at Reason
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