Dec 21, 2012 10:01 AM
Back to Square One. ...... (First tell the AARP to "Shut Up").
The big old entitlement programs are the problem. More specifically, it is the growth rate of those programs. They grow automatically with population and with inflation.
The annual growth rate for Social Security and Medicare combined is about 7%. It is not realistic to grow revenues fast enough to keep up because the economy is growing at about 3% annually over the long term.