GOOD NEWS, BAD NEWS, UNBELIEVABLE NEWS
You Owe the Government Half A Million Dollars
Thanks to local, state and federal politicians, you and your loved ones are in
debt -- big time.
According to a groundbreaking story in USA TODAY, federal, state and local
governments have run up unfunded obligations of $57.8 trillion.
That amount is so huge it is almost impossible to fully grasp.
But think of it this way: it averages out to $510,678 per American family.
Worse, just like an unpaid credit card debt, the amount is growing, month by
month. And at a terrifying rate -- 20% in the past two years alone.
USA TODAY: "The $57.8 trillion liability is the amount that government needs
now, stashed away and earning interest, to generate enough cash to pay future
obligations. ... Like an unpaid credit card bill, the balance grows every year -
- about $25,000 per household annually."
This shocking new number dwarfs all previous reports about government's
unfunded liabilities, which usually focus only on the national debt (and
sometimes Social Security). USA TODAY arrived at it by pulling together up
*all* the sources of government debt and unfunded liabilities.
Here's how USA TODAY breaks this $57.8 trillion debt down in a "per household"
model:
Program..................................Liability per household
Medicare.................................$263,377
Social Security..........................$133,456
Federal debt.............................$42,538
Military retirement benefits.............$25,443
State-local debt.........................$16,395
Federal employee retirement benefits.....$14,256
State-local retirement benefits..........$13,257
Other federal............................$1,956
Total....................................$510,678 per household
Most of this debt is to cover the cost of promised retirement benefits for the
79 million baby boomers born between 1946 and 1964. Those program costs will
explode when boomers begin collecting Social Security in 2008 and Medicare in
2011.
To meet these costs will require *massive* tax hikes, *massive* inflation --
and/or a *massive* cutback in the promised benefits of these programs.
Whatever the solution, it threatens to be extraordinarily painful -- a disaster
for ordinary Americans, the economy, and future generations.
Meanwhile, most of the politicians who made all these promises and dragged
Americans into this mess aren't even aware of it. According to Rep. Jim Cooper,
D-Tenn., a member of the House Budget Committee quoted in USA TODAY, most
members of Congress don't even grasp the size or nature of this incredible
problem.
Here is a perfect example of the utter incompetence of government and
politicians. For generations, politicians have played Santa Claus to win
elections, promising wildly irresponsible social programs and benefits without
considering the consequences. Many Americans have gone along with them,
figuring that, even if the programs were bloated and inefficient, they probably
did more good than harm.
But now the bill is coming due, and we can see the results of this incredible
political irresponsibility.
Maybe, just maybe, this will be a wake-up call to Americans: never again put
any trust in the promises of pandering politicians.
(Source: USA TODAY: "Retiree benefits grow into 'monster'"
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