The Social Security and Medicare Trustees today released their annual reports on the fiscal condition of the programs, and the situation for these programs is still dire. Although the programs’ fiscal health hasn’t worsened since last year, both programs are still on an unsustainable course. Most significantly, the programs are running trillion-dollar shortfalls because they’ve promised more benefits than they can afford: Social Security has a $7.9 trillion shortfall (up $0.1 trillion from last year), which means the program would require $7.9 trillion in cash—today!—to afford its promises. Alternatively, closing …
It’s difficult to forget the drama—including riots, fires, and even deaths—that unfolded during Greece’s recent fiscal crisis. But what would happen if bad budget policy led to a financial crisis in the United States? A recent report from the Congressional Budget Office (CBO) points out the economic casualties of a fiscal crisis in the US would be devastating. First, fiscal crises trigger significant spikes in interest rates, which devastated business investment and consumer spending alike.
As federal income taxes come due this Thursday, Americans are well aware of just how expensive government is becoming. But as the Wall Street Journal warned today, we ain’t seen nothing yet. Obama’s go-to strategy for cutting the deficit is to tax the so-called rich, but this would send tax rates to exorbitant levels. For example, to reduce the deficit from 11 percent of the economy today to a sustainable 3 percent of GDP, families with more than $209,000 would see tax rates rise from 33% and 35% to 72.4% …
When President Obama was inaugurated one year ago, the US economy was struggling. In his address he noted: “The state of our economy calls for action, bold and swift. And we will act, not only to create new jobs, but to lay a new foundation for growth…All this we can do. All this we will do.” So how did he do? Badly. First, he boldly and swiftly went on a spending spree, bailing out US auto companies and passing a $787 “stimulus” bill that promised to create 3.5 million jobs. …
Congress doesn’t want you to know it, but they are about to raise the debt limit because they’ve spent the full $12.1 trillion allowed on their taxpayer-funded credit card. They’re hoping you won’t notice because they’re trying to sneak the increase into some other “must-pass” measure, such as the upcoming defense appropriations bill. But if you do notice (please do notice because it will be expensive), they are hoping you will forget by Election Day. Democratic leadership’s new plan, as espoused by Majority Leader Steny Hoyer (D-MD), is to increase …
Ten democratic Senators recently issued an important call to action for Majority Leader Harry Reid to support efforts to get America’s long-term fiscal imbalance under control. One can only hope Senator Reid listens. As the letter notes, America is already $12 trillion in debt and, in the next decade, will dig itself even deeper by adding $10 trillion in deficits. In the coming months, Congress will be required to increase the debt limit so that America can continue to afford to pay its bills. But the true disaster starts in …
Social Security and Medicare are already tens of trillions of dollars in debt, and if Obama’s national health care program is passed, that will add another $9 trillion in debt. All of that debt gets to be paid for by you, dear taxpayer. As this clever video shows, that’s like adding 2.3 children to every household in America. Only this government-newborn doesn’t come with the joy of raising one of your own or even an “It’s A Boy!” cigar. All you get is a lousy $400,000 in debt. Congratulations, new …
Members of Congress have been working frantically to bring the cost of the health care bill below $1 trillion, make it “deficit-neutral,” per the President’s instructions, and meet Blue Dogs’ expectations that it be “paid for.” As the Congressional Budget Office has pointed out, so far they’ve had no such luck. But the bigger problem is that in focusing on $1 trillion, Congress is missing the forest for the trees. All the estimates they evaluate are 10-year figures, yet nationalized health insurance, if it passes, will likely be around much longer than that. Longer-term …
The non-partisan Congressional Budget Office (CBO) recently warned that entitlement-driven growth is unsustainable and would debilitate the economy over the long-term. In their best-case scenario, the national debt would become three times the size of the entire economy in the next 75 years. (In 2008, debt was about two-fifths of the economy). Given that the budget is already on an unsustainable course, it is strange that Congress is considering making things worse by tacking on an expensive national health program. While many members of Congress are claiming they can find …
