Problems by the Old but for the Youth

I am sick of a few things never being talked about in national politics. One of them is the massive problem of entitlement spending. For those of you unfamiliar with this term (many are as it is carefully avoided by premier politicians) it refers to the funding for programs like Medicaid, Medicare, veteran's benefits and Social Security. Unlike the rest of the budget, funding levels are automatically set by the number of recipients and NOT at the discretion of the Senate. Meaning, we cannot control the amount of our budget that is spent on these programs.

So many people point their fingers at military spending when it comes to many of the problems associated with our budget. What most do not realize is that over fifty percent of our budget is obligated to pay for the entitlement program costs and it is increasing EVERY YEAR. This is more than defense spending, which is stable for the most part, and is certainly more than is spent on education or infrastructure. WHY? Why are we spending more money every year on the elderly than on the FUTURE of this country. Why are we quibbling about defense spending and money for education when those two combined do not match what we spend on Social Security, Medicare and Medicaid? It doesn't make sense but the older you are, the more likely you are to vote. Can we discuss this for once?

Ben Bernanke, the current Federal Reserve Chair is quoted on January 18th as having recognized this glaring and growing problem:

Federal Reserve Chairman Ben Bernanke testified today that “long-term fiscal imbalances” due to rising spending on entitlement programs such as Medicare and Social Security imperil the economy. “If early and meaningful action is not taken,” he warned Congress, “the U.S. economy could be seriously weakened, with future generations bearing much of the cost.”

When Senate Budget Committee Chairman Kent Conrad (D., N.D.) asked, “How urgent is it that we address these long term imbalances?” Bernanke replied: “The right time to start is about 10 years ago.”

http://economistsview.typepad.com/economistsview/2007/01/bernanke_entitl_1.html

**For more info, visit the Congressional Budget Office**

http://www.cbo.gov/ftpdoc.cfm?index=3521