Social Security

#453 - Piling Up Future Debts

Recent federal budget projections show much larger deficits over the next five years than were expected just a short while ago. However, these short-term projections convey almost no information about the true magnitude of our nation's financial problems. We need to adopt a comprehensive fiscal accounting system that communicates the size of unfunded future federal spending commitments under current policies. Because Medicare and Social Security account for most of the unfunded spending, we also need to be informed about whether it arises on account of past, living or future generations. Without such an accounting system, policymakers and the public will remain unable to evaluate available policy options fairly, leading to poor decisions.