This year, the U.S. public debt is projected to reach 62 percent of the economy””up from 40 percent in 2008 and nearly double the historical average, according to recent Congressional Budget Office (CBO) estimates. The financial crisis and recession drove much of this debt swing, yet larger problems loom in the future.
By 2030, the CBO projects that debt will more than double to 146 percent of GDP.[1] The only good news, if it can be called that, is that the U.S. is not alone. Two recent studies by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS) highlight the significance of the global debt challenge and stress the need for governments to aim higher than short-term deficit reductions. For the U.S., one of the most poorly positioned countries, addressing the long-term debt challenge must include prompt reform of Social Security, Medicare, and Medicaid.
Back when Bush was in office, I remember arguing until I was blue in the face with liberals on a local newspaper blog that Social Security and Medicare were in serious trouble. I was in favor of the Bush plan to set aside some of my own SS money in a private account that I would own and direct and be able to pass on to my heirs. The liberals were unanimous that there was NO problem with Social Security and that the conservatives were just evil and trying to destroy Social Security.
Well, here we are, less than a decade has passed and everything I and others like me was saying is now coming true. Social Security is going bankrupt. They are currently paying out more than they are taking in. The rose colored glasses crowd thinks that will change as the “recovery” continues. Ahem…this is a JOBLESS “recovery” and Social Security is funded by a Payroll Tax. No jobs = no payroll = no tax to pay for Social Security. They can raise the age and do a means test…but without jobs, there will still be no money to pay for the promised benefits. Ponzi was punk compared to the Federal Government under liberal leadership.