The grasshopper mentality of the political class


What McCain and Obama -- and we -- should be urgently focused on is not the budget deficit in any given year, but the crushing national debt that all those deficits cumulatively add up to: currently $9.6 trillion, and climbing rapidly. Just paying the interest on that debt will cost the government nearly $250 billion this year, making debt service the fourth-largest item in the federal budget. And since Washington not only has no plan to pay down its debt, but routinely increases it, those interest payments will keep mounting.

Yet the surging cost of interest is nothing compared with the tidal wave of entitlement spending about to crash over us. This is the year that the first of nearly 80 million baby boomers become eligible for Social Security payments; within three years, they will begin drawing Medicare benefits as well. Those two programs alone already account for one-third of the federal budget -- 42 percent if you add Medicaid, which is also focused largely on the elderly. But in the years ahead, their costs will explode. If nothing changes, the Concord Coalition warns, Social Security, Medicare, Medicaid, and interest on the national debt will consume every penny of federal revenues in less than 20 years.

Clearly, things will change. They have to. Either taxes will be hiked to unprecedented levels, or spending - especially on entitlement programs - must be forcefully reined in. There is no other alternative short of continuing to run up the national debt, thereby loading our children with an unconscionable financial burden, and imperiling the entire economy in the process.

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Posted by John Ray.