By John W. Lillpop
The next time Barack Obama, Harry Reid, or Charles Schumer warns against “extreme” measures proposed by the GOP to deal with the spending-debt crisis, remind him of the following, as reported as the reference, in part:
“The federal government's financial condition deteriorated rapidly last year, far beyond the $1.5 trillion in new debt taken on to finance the budget deficit, a USA TODAY analysis shows.
The government added $5.3 trillion in new financial obligations in 2010, largely for retirement programs such as Medicare and Social Security. That brings to a record $61.6 trillion the total of financial promises not paid for.
This gap between spending commitments and revenue last year equals more than one-third of the nation's gross domestic product.
Medicare alone took on $1.8 trillion in new liabilities, more than the record deficit prompting heated debate between Congress and the White House over lifting the debt ceiling.
Social Security added $1.4 trillion in obligations, partly reflecting longer life expectancies. Federal and military retirement programs added more to the financial hole, too.
Corporations would be required to count these new liabilities when they are taken on — and report a big loss to shareholders. Unlike businesses, however, Congress postpones recording spending commitments until it writes a check.
The $61.6 trillion in non-funded obligations amounts to $527,000 per household. “
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These startling facts should make it plain that entitlement reform WILL HAPPEN. The only question is whether the reform will be orderly and peaceful, or will the entitlement programs simply stop sending money out at some point?
Is America headed for chaos in the streets?
It’s pay me now or pay me later—not paying is not an option!
