Economics

The Numbers Don’t Lie

U.S. Is Bankrupt and We Don’t Even Know: Laurence Kotlikoff

Simple. We have 78 million baby boomers who, when fully retired, will collect benefits from Social Security, Medicare, and Medicaid that, on average, exceed per-capita GDP. The annual costs of these entitlements will total about $4 trillion in today’s dollars. Yes, our economy will be bigger in 20 years, but not big enough to handle this size load year after year.

This is what happens when you run a massive Ponzi scheme for six decades straight, taking ever larger resources from the young and giving them to the old while promising the young their eventual turn at passing the generational buck.

What we need are massive and aggressive entitlement and spending cuts and a balls-to-the-wall economic growth program of regulatory simplification, capital gains and corporate tax eliminations. We need this yesterday!

But what do we actually get?

A $26 Billion dollar reward to states who can’t spend within their means.

Thanks, Democrats. But are the Republicans going to be any better? Here’s hoping for the Tea Party, at least.

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