The political debate rages on. The left wants more and the right wants less and the American people want both. Government has made significant promises to the American people, but has failed to adequately fund those promises and has failed to tell Americans the truth about the liabilities created and what it will take to fund our current commitments.
Consider the following while you listen to the promises to expand programs and the strategies proposed to deal with the cost of what we have now.
Fact: In fiscal year 2016 the federal government spent $432,649,652,901.12 in interest payments on the federal debt
Fact: On February 1, 2009 the federal debt owed to the public was $6,317,224,182,633.94; the total debt was $10,632,005,246,736.97. On November 1, 2016 the debt held by the public was $14,284,843,453,012.60 and total debt was $19,760,054,127,045.83.
While government will always have debt, we are at exceptional levels. With interest rate rising the interest payments will also rise, that is money that could be used more effectively in any number of ways.
Fact: The federal deficit is about one-half a trillion dollars per year.
Fact: The Medicare Part A Trust is projected to be insolvent by 2028
Fact: The Social Security Trust Fund is projected to be insolvent by 2035
Fact: Medicare basic premiums increased by 10% for 2017, however because of the hold harmless provision plus Congress’s action to mitigate the 2016 increase, a great deal of catch-up premiums will be necessary and will consume future Social Security COLAs for most beneficiaries.
Fact: In 2006 the family poverty rate was 9.9%; ten years later it was 10.4%
Fact: “In the United States, current unfunded corporate defined benefit commitments total approximately $425 billion. State and local government employee defined benefit pension plans have from $1 trillion to $3 trillion in unfunded commitments (depending on the discount rate used)…” Source: The Coming Pension Crisis
Fact: The US workforce participation rate is 62.8% (including those retired) indicating a demographic shift and also a decline in those paying payroll taxes.