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In 2007, U.S. GAO Said: |
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$53.3 Trillion |
$50.5 Trillion |
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Total U. S. Households’
Net Worth |
Debts and Present Value of Unfunded
Commitments of the Federal Government over the Next 75 Years |
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THE COMMITMENTS EXCLUDE MILITARY
SPENDING, MEDICAID SPENDING AND MOST GENERAL SPENDING (WHICH
AMOUNTED TO APPROXIMATELY 60% OF SPENDING IN THE 2005 FISCAL YEAR). APPROXIMATELY
64% RELATES TO MEDICARE. IN OTHER WORDS, THEY ARE
RETIREMENT-TYPE BENEFITS SUPPLIED BY THE FEDERAL GOVERNMENT. THE ENTITLEMENTS HAVE BEEN DISCOUNTED TO
PRESENT VALUE USING A 5.7% INTEREST RATE. APPROXIMATELY 67% OF THE
COMMITMENTS COME DUE WITHIN THE NEXT 50 YEARS. (END GAO MATERIAL)
INTERPRETED: UNDER CURRENT FISCAL POLICY OR ANYTHING LIKE IT, ABSENT VERY
SIGNIFICANT IMMIGRATION, UNLESS NET WORTHS GROW AT A
SUBSTANTIALLY GREATER RATE THAN 5.7% PER YEAR, OVER THE NEXT 75
YEARS, THE FEDERAL GOVERNMENT NEEDS TO CONSUME ALL OR SUBSTANTIALLY ALL OF THE CURRENT WEALTH OF U.S. CITIZENS
(PLUS FUTURE EARNINGS THEREON) TO PAY ITS EXPENDITURES.
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A "brief analysis" of the Social Security and Medicare problems is
provided here. (PDF) Realistically,
there are only 4 means of addressing these problems. They are:
Substantially increasing taxes, substantially increasing immigration,
substantially reducing health care costs, reducing government, or a
combination of these options. Regarding immigration, see the following
Pew Research Center Report findings.
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According to the Pew Research Center
Role in Future U.S.
Growth
If current trends continue, the
population of the Untied States will rise to 438 million in 2050, from
296 million in 2005, and 82% of the increase will be due to immigrants
arriving from 2005 to 2050 and their U.S.-born descendants, according to
new projections developed by the Pew Research Center.
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My feelings about
this matter are discussed in the section of this website concerning
a
Reasonable Immigration Policy and a Solution to the Illegal Immigration. Details and other alarming information can be found in U.S.
Comptroller General David M. Walker's power point presentation given at
the Fiscal Wake-Up Tour's presentation at Georgia State University on
October 1, 2007.
The power point presentation document is available HERE
in pdf format. The
younger you are, and/or the wealthier you are, the more these problems
will
impact you.
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