Wednesday, May 30, 2007

Reality Check: Governments SPEND TOO MUCH

Yah, hey.

The federal government recorded a $1.3 trillion loss last year — far more than the official $248 billion deficit — when corporate-style accounting standards are used, a USA TODAY analysis shows.

The loss reflects a continued deterioration in the finances of Social Security and government retirement programs for civil servants and military personnel. The loss — equal to $11,434 per household — is more than Americans paid in income taxes in 2006.

Bottom line: Taxpayers are now on the hook for a record $59.1 trillion in liabilities, a 2.3% increase from 2006. That amount is equal to $516,348 for every U.S. household. By comparison, U.S. households owe an average of $112,043 for mortgages, car loans, credit cards and all other debt combined

Unfunded promises made for Medicare, Social Security and federal retirement programs account for 85% of taxpayer liabilities. State and local government retirement plans account for much of the rest.

And Wisconsin's "state and locals" are likely disproportionately represented in the pile.

HT: Grim'sHall

2 comments:

  1. Sloughing towards a Socialist State, then, later on, collapse.

    ReplyDelete
  2. That is a very disturbing article.

    OTOH, be happy you don't get all the government you pay for...we're getting there, though.

    ReplyDelete