In the past few weeks, members of both political parties have finally introduced plans to save America.
And it's about time.
Because the country's finances are a horrowshow.
Unfortunately, because our leaders are still pretending that we can have it all, Americans haven't yet clued into the fact that the only answer is BOTH higher taxes AND less spending.
In other words, kicking our debt and deficit problem is going to be painful. And everyone's going to pay.
Mary Meeker of Kleiner Perkins recently published an excellent analysis of the financial condition of the United States. The presentation shows how big our problem is, and what we're going to have to do to solve it.
The presentation shows that we spend a lot on Education and Defense, but that isn't the real problem. The real problem is Social Security, Medicare, and Medicaid (especially Medicare and Medicaid). These programs are wildly more expensive than any other budget items, and they're also growing like weeds.
As Mary's charts show, there's almost no chance that we can "grow our way out of the problem."
To fix this problem, we must cut Medicare, Medicaid, and Social Security spending (or, at the very least, cut spending growth). And, yes, we're also going to have to whack Defense and other spending. And we're going to have to raise taxes.
Don't believe us? See for yourself.
Posts: 9122 From: Waleska, GA, USA Registered: Jan 2004