I chuckle (not really, I actually cringe) when I read experts and special interest groups saying there is no real problem with the major entitlement programs, they are in fine shape and need only a bit of a tweak to continue business as usual.
Those folks and you should read the most recent blog posts from the Congressional Budget Office (CBO).
Here is a sample:
The implications of this analysis are clear: There is a substantial mismatch between what the government would have to spend to maintain existing programs in their current form and the revenues that taxpayers are accustomed to providing the government to pay for those programs.
To keep deficits and debt from climbing to unsustainable levels, policymakers will need to increase revenues substantially as a percentage of GDP, decrease spending significantly from projected levels, or adopt some combination of those two approaches. Making such changes while economic activity and employment remain well below their potential levels would probably slow the economic recovery. However, the sooner that medium- and long-term changes to tax and spending policies are agreed on, and the sooner they are carried out once the economy recovers, the smaller will be the damage to the economy from growing federal debt. Earlier action would permit smaller or more gradual changes and would give people more time to adjust to them, but it would require more sacrifices sooner from current older workers and retirees for the benefit of younger workers and future generations.
You can (and should) read the full article by linking to the CBO Directors blog under Blogroll on the right side of this page.
How much do you think older Americans and retirees are willing to sacrifice for their children and grandchildren? Not much I’m guessing if the voice of the AARP is any indication. Our fixation with seemingly “free” or buried in someone elses taxes entitlements has gotten us into not only class, but generational warfare and that ain’t good.
We have built the worlds largest Ponzi scheme and the new investors are disappearing.
Related articles
- CBO’s 2011 Long-Term Budget Outlook (ynative77.wordpress.com)
- CBO- Public debt picture has worsened considerably (whitelocust.wordpress.com)
- Money For Nothing: CBO Reports That Stimulus Doubled the Debt (dancleary.typepad.com)
- CBO warning to Congress: national debt needs action, and soon (csmonitor.com)
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