"Simply stated, there is no greater threat to our nation’s long-term economic well being than the growing gap between spending and revenue. …
As a nation, we face some tough choices…choices we have to make together. The collaborative problem-solving and strategic thinking that every Budgetball team must carry out in order to win mirrors the thinking we have to do as citizens or as elected officials. Should we sacrifice now so that we can make investments in education and transportation that will have pay-offs later? Or would the nation be better off if we borrow money for those investments? We all have different points of view about saving and borrowing, yet, somehow, we have to make a collective decision.
Today, the Federal government is a record-breaking $11,000,000,000,000 in debt. The looming financial problems will worsen if we prolong resolving them. Foremost among the problems are the projected shortfalls in dedicated revenue for Social Security, Medicare and Medicaid.
As the large "baby boomer" population reaches retirement and health care costs escalate, payroll taxes for these programs will soon be insufficient to cover the large unfunded promises that America has made for Social Security and Medicare benefits. Last year, over a third of the federal budget, more than one TRILLION dollars, was spent on Medicare and Social Security.
In fact, if nothing changes, in less than 20 years the entire federal budget would have to be devoted to Social Security, Medicare, Medicaid and paying interest on the federal debt! What happens then to programs like federally-supported student loans, alternative energy research and investments, and basic medical research?
It's clear that we have to make some tough decisions... but the sooner we decide what changes to make, the less drastic those changes will have to be. It doesn't matter which side you agree with, just...
Get informed so you can get involved in the conversation regarding the National Debt!!!
Gross Domestic Product is defined as the total market value of all final goods and services produced in a country minus the value of imports. The Debt to GDP ratio is important because it indicates the finances of the nation as a whole.
The PGPF Citizen's GuideWhat are Social Security, Medicare and Medicaid?
Social Security provides a source of retirement and disability income to people who have paid into the system and their dependents. It is funded through dedicated payroll taxes. Medicare is a federal program that provides health insurance and prescription drugs for nearly 43 million people who are either over age 65 or disabled; it, too, is paid for through payroll taxes that are dedicated to that purpose. Medicaid is a health insurance program for low-income individuals that is jointly funded by the federal government and states.
Want to know more about Social Security?
http://www.ssa.gov/pubs/10024.html
Want to know more about Medicare?
http://www.medicare.gov/Publications/Pubs/pdf/10050.pdf
Want to know more about Medicaid?
http://www.cms.hhs.gov/MedicaidGenInfo/