The Challenge Before Us
Policymakers, businesses and citizens need to share responsibility for past failures and develop a plan for future successes.
Past generations of Americans have responded to major challenges with collective sacrifice and hard work.
Will ours also rise to the occasion?
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Current Observations About America...
¢ On many fronts, USA Inc. is in great shape, but it has one big problem — USA Inc. spends too much and, in effect, is maxing out its credit card. USA Inc. must address the problem.
° In 2009, 64% of America’s revenue went to Social Security, Medicare & Medicaid, compared with 31% in 1980 and 20% in 1970.
¢ Using current projections, 100% of America’s revenue in 2025 will go to Social Security, Medicare, Medicaid and Net Interest Expense.
¢ This raises the question, ‘How will America pay for the likes of education, national defense, homeland security, infrastructure improvement, R&D, law enforcement, postal service, etc.?’
¢ USA Inc.’s fundamental tradeoff is that it must balance its FUTURE (education) with its PRESENT (national defense & homeland security) and its PAST (Social Security & Medicare & Medicaid).
Source: 2009 data per White House OMB, 2025 forecast per CBO’s Alternative Fiscal Scenario. a USA Inc. | Summary 448
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