Imagine Medicare costs in the year 2050 being 21.9% of our nation's GDP. Imagine if Social Security were around the same percentage of the GDP. A study here suggests that these numbers are a very real possibility if spending is not brought under control.
Since 2001, when George W Bush took office, the United States' debt has risen $2 trillion. The same article projects that by 2050, the interest payments alone on this debt will be between 12.4 and 21.4% of GDP.
These are fairly outstanding numbers. What I'm unsure about is whether they take into account the growth of our economy. Our economy is growing about 3% a year. If the above numbers do not take growth into consideration, then they might not be as bad as the article suggests.
However, if growth is taken into consideration, then these numbers are quite depressing. Some might suggest that if we raise taxes, we'll be able to cover the combined payments of debt, Medicare and Social Security. The problem with that theory, is that it assumes the growth rate would be the same if there were higher taxes. When taxes are increased, they tend to depress the overall economy (what is the use of starting a business, if I have to pay a higher share to the government?).
Spending the present value of your projected future earnings now is not necessarily a wise decision (unless you're spending it on things that stimulate growth and add to the economy; such as a business would to increase their return on capital). Socialism has caused other countries to continue spending long after the money supply has run out. Look at Argentina.
The spending of the Congress needs to cease before we get ourselves into big trouble. Bush needs to curb his and his Congress' need to appease just about every special interest and pet project that comes along. The future of our country depends on it.
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