According to an article in USA Today, the ability of the US Government to make good on its financial promises to citizens is gravely deficient:
- The economic health of the federal government declined alarmingly last year, much more than the $1.5 trillion in new debt assumed because of the budget deficit might suggest.
- The government's new financial obligations in 2010 totaled $5.3 trillion, due mostly to Medicare and Social Security, bringing unfunded financial promises to an all-time high of $61.6 trillion.
- The difference between revenues and spending commitments just last year comes to more than one-third of the nation's GDP.
- Medicare by itself added $1.8 trillion in new liabilities.
- Social Security added $1.4 trillion in its obligations, a reflection of increased life expectancies. Federal and military retirement programs contributed to the financial shortfall, too.
- Under current law, corporations must declare new liabilities when they're taken on — such disclosures usually translate into big losses for shareholders. Congress places no such obligations on itself.
- The $61.6 trillion in unfunded obligations comes to $528,000 per household – five times what Americans borrow for everything else — home mortgages, auto loans and other debt.
- Accountant Sheila Weinberg, founder of the Institute for Truth in Accounting, faults the government for the incomplete picture it presents of its future obligations: "The (federal) debt only tells us what the government owes to the public. It doesn't take into account what's owed to seniors, veterans and retired employees."
- Among other things, the government has promised benefits worth in excess of $700,000 per retired civil servant. The pension fund's main asset: federal IOUs.
America's Mountain of Debt
VISIT OUR SPONSORS
ChristianMusic.com & HomeVideos.com & Nightmares.com
Ballcaps.com & BigScreens.com & GreatHotels.com & LimoRentals.com & UsedTrucks.com