Federal data indicate how urgently we need reform: The unfunded liabilities of Social Security, Medicare and Medicaid already exceed $106 trillion. That's well over $300,000 for every man, woman and child in America (and exceeds the combined value of every U.S. bank account, stock certificate, building and piece of personal or public property).Uncloudy day on the budget front - Scott Johnson
The Congressional Budget Office has warned that the interest on our federal debt is "poised to skyrocket." Even Federal Reserve Chairman Ben Bernanke is sounding alarms. Yet the White House insists that substantial spending cuts would hurt the economy and increase unemployment.
Plenty of compelling examples indicate just the opposite. When Canada recently reduced its federal spending to 11.3% of GDP from 17.5% eight years earlier, the economy rebounded and unemployment dropped. By comparison, our federal spending is 25% of GDP.
Geithner freely conceded under questioning from Senator Sessions that the president's own budget calls for interest payments and obligations that are "excessively high" and "unsustainable."
Spending Cuts In Perspective - John Hinderaker
USA, Inc - John Hinderaker
If the United States were a company, what financial shape would it be in? And what would it make sense to do to put the company on a sounder footing?
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First, the "bottom line:"
Slide 27:
As USA Inc. we have a continuing and enormous negative cashflow and negative net worth...effectively "in the hole" by negative $45 TRILLION!! [Ed.: So much for the insistent liberal theme that we're not broke.]
