What Is Goin’ On?

We all have too much consumer debt, but what about our government? How would you like to be $9 trillion in debt. America is. The government certainly isn’t setting a very good example.

In this interview with Scott Bittle, I try to find out. Scott is the executive editor of PublicAgendaOnline and has written a book, “Where Does the Money Go?”

A few sobering facts. If you think the costs of the Iraq War are responsible for our debt problems, then consider that while the war has cost upwards of $600 billion, the national debt has increased $2.3 billion. Earmarks (which are the epitome of everything I hate about Washington and money) account for about $16 to $18 billion of the current budget. However, the current budget is expected to create a deficit of $400 billion.

Okay, so what the hell is the problem? If government waste isn’t killing us, what is? The answer is simple: Medicare and Social Security. The programs that you (me, us) don’t want the government to fool with are the ones that are going to break us, if we don’t do something, that is.

Health care costs increase 6 to 7 percent per year. More people (the baby boomers) are entering Medicare and Social Security. More people, more costs. All the money that we pay into Social Security now is spent to pay current benefits, not future benefits. The government spends the money in the Social Security Trust Fund and in return the government gives the Trust Fund an IOU, treasury bonds. Scott says the fund is not going to be bankrupt in 30 years, it just won’t be able to pay full benefits. If we do nothing, Social security will be able to pay 75% of promised benefits in 2041.

Scott says that everyone inside the Beltway understands the problem, but the rest of us don’t. Because we don’t understand the significance of the problem, we fear the government tampering with Social Security and Medicare. Neither party wants to deal with this issue because it is such a lose-lose proposition. What do we do? We threaten them with defeat at the polls if they touch the untouchables, Medicare and Social Security.

The point of all this, the point of Scott’s book: Until the public is educated, until the public is ready to deal with these issues, the politicians are not going to tell us the truth and are not going to deal with these problems. If you have a hard time getting your mind around these issues, buy the book! Before it is too late!