If a corporation promised a future retiree a pension, the corporation would have to record that amount as a liability and then note it down as an expense of doing business during the year the liability was incurred.
The US government does not do this basic required accounting.
So, we think the deficit is "only" $1.6 trillion this year, but it is actually MORE if we consider our unpaid future extra liabilities we incurred this year.
Congressmen, and maybe even the President, do not understand this. Harry Reid and Barbara Boxer have said "There is no problem with social security. We have a huge surplus" - But, with thinking and an analysis and understanding of the facts and factors involved, I declare those are "unknowledgeable" statements, completely incorrect and misunderstood. (I am not optimistic about our legislature adequately dealing with what is needed!!!!)
Medicare is behind $36.3 trillion, considering all that we've promised in the future (minus what will be paid).
Social Security is behind $7 trillion. (And those are the low estimates.)
I hope the congressmen, and perhaps the reader, reads, on the related site:
The Unfunded Liabilities Explanation (kind of an Accounting 101)
Social Security - What is the real liability?
Medicare - This is a bigger problem. Get the whole perspective.
The problem is solvable if we do the practice of "handling a problem while it is little so that it does not get big" - except it is already very, very big, but we can prevent being run over by a big freight train, if we anticipate - and use our reasoning power, with the facts and consulting the true experts.
Will we face the biggest problem of our era? Will Congressmen learn and then deal with it?
I certainly hope so!!!
The NonPolitician
As always, corrections, additions, and feedback are always welcome.
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