Shortly after the 2004 election, President Bush summoned the nation and Congress to address the Social Security crisis. The indisputable numbers show what has become our nation's retirement system is headed for a major train wreck. It is speeding on a course toward bankruptcy. Rather than addressing the issue, Congress dodged the problem by going after the President's proposal to allow young people to begin to take part of their Social Security taxes and invest them in their own personal 401(k) programs.
Unfortunately, the reforms died on the vine and nobody would talk about the problem----that is except Rep. Paul Ryan (R-Wisconsin) who happened to be the ranking Republican on the House Budget Committee. Ryan says the federal government is headed for bankruptcy if it continues on its present course.
To back up this claim, Ryan cited an estimate by the non-partisan Government Accountability Office that says the government faces a $53-trillion shortfall to cover the costs of promised benefits in its entitlement programs.
“They say we are $53 trillion short of fulfilling the promises the government is making to the American people, in today’s dollars,” said Ryan.
Tje former Comptroller General of the United States, David Walker, has been saying much the same thing, making it his main priority since leaving office.
Walker is traveling across the country speaking to whatever audience will listen to him. On April 15, he spoke to the Washington Policy Center telling them America not only has a large deficit, but the real problems are off balance sheet obligations. For example, the U.S. has over $44 TRILLION (that is 44 plus 12 zeros) in unfunded obligations to Medicare and Social Security alone---that's our country's retirement, safety net and health care system for retired citizens. Add that to the current liabilities and it soon bloats to $53 TRILLION--and that was of Sept. 30, 2007. And, if predictions are correct, our debt is now in the range of $55 to $56 TRILLION.
Walker figures $53 TRILLION will cost the average American household $455,000. Since the average family income is $50,000, that is an implicit mortgage of over nine times their yearly income with no house to show as equity. It is one heck of a credit card bill that our children, grandchildren, great grandchildren.......will have to pay! What a legacy to leave the next generation, many of whom are simply struggling to pay off thousands in college loans.
Just how much is ONE TRILLION? In ordinary time, one would have to look at the clock for 31,546 years for ONE TRILLION seconds to pass. Considering the last Ice Age was 11,000 years ago, the clock-watcher would see the formation of much of the Columbia River drainage considering the glacial dams broke and reformed Lake Missoula over a 55-year period between 13,000 and 15,000 years ago. For Biblical scholars, John Ussher pegs Creation at 4004 B.C.
Try multiplying these numbers by 55! It is beyond imagination, but the federal obligations are REAL and should not be ignored. Somehow, we all feel as though our "Good Old Uncle Sam" will make things right or we'll simply print enough money to get out of the jam. Think again!
And as long as they are at it, those who sought to muzzle the President by criticizing his proposal, ought to think about just how the heck they are going to address this problem. The answer is not "Let Our Grandchildren Worry About It!"
Don C. Brunell, President (DonB@awb.org)
