Kicking The Can To Bankruptcy

Robert J Samuelson wisely welcomes the impending bankruptcy of Social Security and Medicare in “A “Crisis’ America Needs”. Pointing to the $45.8 trillion in unfunded liabilites facing these two programs, he points out that due to reduced revenues, “Social Security, Medicare Risk Bankruptcy in 2010” and suggests that it is only facing a crisis situation that our political leaders will actually act responsibly.

President Obama’s has suggested that it is time to stop “kicking this can down the road”. His predecessors have also given lip service to the problem and some have even tried to enact meaningul reform.

As the “trust funds” in which the revenues from Social Security and Mediacre have been replaced with IOUs for subsidies of all sorts of other government spending instead become a liability that require current repayment, perhaps politicians will act more responsibly.

Idealistically, one can only hope for actually responsible government.

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Filed under Economic Policy, Fundamental Perspectives

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