LESS GOVERNMENT, MUCH LESS GOVERNMENT
November 11, 2008
Social Security and Medicare alone currently have a combined unfunded liability of $101.7 trillion, according to the 2008 Social Security and Medicare Trustees Report. The unfunded liability is the difference between total benefits to be paid, and the total projected collections in taxes and Medicare premiums. That $101.7 trillion unfunded liability is more than seven times the size of the U.S. economy and 10 times more than the national debt. Can anything be done, asks About.com?
According to the National Center for Policy Analysis (NCPA), without raising taxes or massive reform of entitlement spending programs:
- By 2010, the federal government will stop doing 1 in 10 things it's doing now.
- By 2020, the federal government will stop doing 1 in 4 things it's doing now.
- By 2030, the federal government will stop performing half of the services it provides.
- By 2050, Social Security, Medicare and Medicaid will consume nearly the entire federal budget.
- By 2082, Medicare spending alone will consume nearly the entire federal budget.
How should you prepare to deal with this possibility of life with much less government? Addison Wiggin, coauthor of the suddenly popular book-turned-movie I.O.U.S.A. suggests, "For their part, individuals need to save more, invest wisely, expect less from the government, and be willing to pay for the services they do expect."
Source: Robert Longley, "Less Government, Much Less Government," About.com, Tuesday November 11, 2008
For NCPA study:
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