<div class=”d4p-bbp-quote-title”>MountainBiker wrote:</div>Just a #’s correction here. There is no way that if 100% of individual and corporate income was $9 Trillion that SS & medicare could be $7 Trillion. I think the correct SS/Medicare spending is more along the lines of $1.3 Trillion, still a very big number. For $7 Trillion to be correct pretty much everyone in the country would have to be a retiree.
Those numbers came from the Wall Street Journal. It’s being funded with enormous debt. Google ‘unfunded liabilities’. The ‘official’ debt, which is now about $18 Trillion is barely scratching the surface on the true scope of the problem.
Here is from that link where they are quoting the Wall Street Journal:
The actual liabilities of the federal government—including Social Security, Medicare, and federal employees’ future retirement benefits—already exceed $86.8 trillion, or 550% of GDP. For the year ending Dec. 31, 2011, the annual accrued expense of Medicare and Social Security was $7 trillion. Nothing like that figure is used in calculating the deficit. In reality, the reported budget deficit is less than one-fifth of the more accurate figure.
Why haven’t Americans heard about the titanic $86.8 trillion liability from these programs?
One reason: The actual figures do not appear in black and white on any balance sheet. But it is possible to discover them. Included in the annual Medicare Trustees’ report are separate actuarial estimates of the unfunded liability for Medicare Part A (the hospital portion), Part B (medical insurance) and Part D (prescription drug coverage). As of the most recent Trustees’ report in April, the net present value of the unfunded liability of Medicare was $42.8 trillion. The comparable balance sheet liability for Social Security is $20.5 trillion.