100 likes | 203 Views
Facing America’s Long-Term Budget Challenges. Brian Riedl Grover M. Hermann Fellow for Federal Budgetary Affairs The Heritage Foundation. Washington Now Spends $24,106 Per Household. The Long-Term Problem. 77 Million Retiring Baby Boomers Ratio of workers supporting each retiree:
E N D
Facing America’s Long-Term Budget Challenges Brian Riedl Grover M. Hermann Fellow for Federal Budgetary Affairs The Heritage Foundation
The Long-Term Problem • 77 Million Retiring Baby Boomers • Ratio of workers supporting each retiree: • 1960 – 5-to-1 • 2007 – 3-to-1 • 2030 – 2-to-1 • A Married Couples’ Burden in 2030 • Rising Health Care Costs • Medicaid Affected Too
Social Security, Medicare, and Medicaid Costs As a Percent of GDP
Option 1: Tax IncreasesPer Household & Translated Into Today’s GDP
Option 2: Other Program CutsYearly Budget Breakdown, Assuming No Tax Hikes or Budget Deficits
Option 3: Continue Current PoliciesAnd Cover Shortfalls With Budget Deficits
Option 4: Modernize Social Security, Medicare, and Medicaid • Reform is the only way to avoid the scenarios listed above. Delays only push up the final reform costs. • Long-Term Budgeting with Caps • Target Benefits to Needy • The Unaffordable Medicare Drug Entitlement
Conclusion • More Than Just Economics • Moral Questions of Generational Burdens and Fairness • The Burden Facing Today’s Young Workers