Because there is no reserve fund for these liabilities, any shortfall is taken out of general tax receipts unless politically difficult changes are made. In 1946, 42 workers were available to support the cost of each Social Security recipient. Without changes, by 2030, there will be only two workers to support each retiree.
Unfortunately, instead of facing these growing costs, our Washington politicians are busy creating greater dependence and more debt. Whether it’s cash-for-clunkers, bailouts of companies “too big to fail,” or funds to keep states afloat, they’re printing money faster than they can find investors willing to purchase Treasury notes.
The cost for the proposed healthcare plan appears manageable, because the plan requires Americans to pay taxes for ten years and get coverage for only six! But using the CBO assumptions on growth of the cost of the healthcare program beyond the initial decade, the annual cost for the healthcare plan after the second decade will be more than the entire federal budget the year President Obama was elected.
It’s no wonder that on his recent trip to China, President Obama warned, “It is important though to recognize if we keep on adding to the debt, even in the midst of this recovery, that as some point, people could lose confidence in the U.S. economy in way that could actually lead to a double-dip recession.” Whether it’s another recession or an anemic recovery, America is not returning to economic health any time soon unless we change course. We need smaller government, not more entitlements. We need to return to the policies and incentives that have helped America bounce back and create jobs in past recessions.
Instead of making an apology, we can still change the future, but politicians won’t cut costs or eliminate expensive entitlement programs unless more citizens demand it. Now is the time for all generations to tell our Senators and Representatives to stop this madness. Stay informed by visiting www.townhall.com and exercise your citizenship by making a difference on healthcare using the resources and links at the National Center for Policy Analysis (www.ncpa.org).
Like Boy Scouts who work to leave the wilderness better than they found it, every generation should leave America better for having lived. Leaving future generations the bill for our excesses doesn’t leave a legacy we can be proud of!