Health & Fitness
U.S. OWES $62 TRILLION
$62 trillion is low. Three important things to consider follow.
A front page article in USA TODAY had the headline: "U.S. owes $62 trillion."
$62 trillion is low. Three important things to consider:
1) It is low because it is based on a 75 year life expectancy. Babies born today have life expectancies into their eighties. When that life expectancy is factored into the calculation the unfunded liability skyrockets to over $100 trillion. These numbers are inconceivable to me.
2) These numbers do NOT include Medicaid, which is projected to become the largest government program. With Medicaid, under the new national healthcare legislation, some are guessing that the unfunded liability will be between $150 and 200 trillion.
3) How will we pay for all this?
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Add to this Robert Shiller, a professor at Yale and co-creator of the S&P Case-Shiller index, believes the stock market is overvalued. He also predicts housing prices could drop another
10 to 25%. On an inflation adjusted basis, home prices were flat from 1890 to 1990.
To make matters even worse for those of us living in California the cities (including Belmont), the counties and of course the state base their pension plan assets to grow at 7 3/4% to cover their liabilities. If they can't count on the stock market, real estate or bonds, What will they (we)do?
