LEAP IN U.S. DEBT HITS TAXPAYERS WITH 12 PERCENT MORE RED INK
May 29, 2009
Taxpayers are on the hook for an extra $55,000 a household to cover rising federal commitments made just in the past year for retirement benefits, the national debt and other government promises, a USA Today analysis shows.
- Social Security will grow by 1 million to 2 million beneficiaries a year from 2008 through 2032, up from 500,000 a year in the 1990s, its actuaries say.
- Average benefit: $12,089 in 2008.
- More than 1 million a year will enroll starting in 2011 when the first Baby Boomer turns 65.
- Average 2008 benefit: $11,018.
- Congress has not set aside money to pay military and civil servant pensions or health care for retirees.
- These unfunded obligations have increased an average of $300 billion a year since 2003 and now stand at $5.3 trillion.
The 12 percent rise in red ink in 2008 stems from an explosion of federal borrowing during the recession, plus an aging population driving up the costs of Medicare and Social Security. That's the biggest leap in the long-term burden on taxpayers since a Medicare prescription drug benefit was added in 2003. The latest increase raises federal obligations to a record $546,668 per household in 2008. That's quadruple what the average U.S. household owes for all mortgages, car loans, credit cards and other debt combined.
"We have a huge implicit mortgage on every household in America -- except, unlike a real mortgage, it's not backed up by a house," says David Walker, former U.S. comptroller general, the government's top auditor.
Source: Dennis Cauchon, "Leap in U.S. debt hits taxpayers with 12% more red ink," USA Today, May 29, 2009.
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