Unfunded Liabilities:
A Solution
by Richard L. Spencer, Ph.D.
A Solution
by Richard L. Spencer, Ph.D.
The Legacy of Unfunded Liabilities
As the premise for this short analysis of unfunded liabilities, I shall use the figures put forth by President Fisher of the Dallas Federal Reserve in a recent interview at the Wall Street Journal. His office has estimated the present value of the unfunded liabilities for Medicare and Social Security alone to be in excess of $99 trillion or about seven times our current GDP. Fisher lamented that our political leaders have “dug a very deep hole” for the country.
Most economists agree and believe that we are positioned at a crossroad concerning our country‟s financial future, as there is no reasonable expectation that we can tax, grow, or borrow our way out of such a crushing, unfunded debt. It is a lethal picture of delusion and idealism that knows no boundaries and recognizes no financial realities. Hauser‟s Law states that federal tax receipts always fall short of 20% of GDP. That alone makes any suggestion these programs can be fiscally supported divorced from the totality of fiscal prudence. The U.S. has entered into a Faustian model of debt, dependency, and default. It is Ponzi on steroids and the country is the victim!
To read the full article in The Caesar Rodney Institute's Town Square forum, click on:
CRI: Unfunded Liabilities
Or to read another version in The Canada Free Press, click on:
CFP: Unfunded Liabilities
Then respond to Rick's challenge at the end, by posting a Comment below, or with an e-mail to: samspencer@mchsi.com
