In 2001, previous to 9/11, with expected budget surpluses, David M. Walker still warns about the long-term structural deficits created by the major entitlement programs (Social Security, Medicare and Medicaid) driven largely by the increase in cost of medical care.
"Rising health care costs - The resurgence of health care costs due to a variety of factors will put increasing pressures on governments, employers and individuals in the years ahead. We have a huge imbalance between what people want, versus what they need versus what we can afford in this critically important area. Stated differently, there is a huge imbalance between what has been promised and the resources that are likely to be available in this area, especially in connection with Medicare." (David M. Walker- U.S. Comptroller General, "Government Challenges in the 21st Century", National Press Club, April 23, 2001)
Said even more succinctly, "Given these long-range fiscal challenges, we must be prudent about how to handle the current surplus while getting on with entitlement reform if we want to avoid a train wreck down the road." (David M. Walker- U.S. Comptroller General, "Government Challenges in the 21st Century", National Press Club, April 23, 2001)
It is impossible to overstate the fiscal damage that has been done by various factors, circumstances and events since these statements were made in an era of relative peace and prosperity. Wars in Afghanistan and Iraq and the most fiscally irresponsible piece of legislation passed since LBJ signed the establishment of Medicare in 1965 (the 2003 establishment of the Medicare, Part-D, Prescription Drug Benefit) was signed into law by President George W. Bush increasing the underfunded liabilites of the Medicare system by over 40% over the next 75 years- all with just one stroke of the pen. There have been financial sector melt-downs, bailouts and a deep lasting recession since 2008. All of these factors have left the fiscal state of the Nation in the most critical of condition.
The urgency with which we must take meaningful and aggressive action to get our arms back around our debt and deficit by reform of the entitlement programs cannot be overstated. For additional education on the current state of affairs, please watch the following clips and comment- your voice counts!!!
I.O.U.S.A. Solutions
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