Kick that Can Again

Citing the $14.3T federal debt ignores real problem.  What we should be worried about is the present value of all future expenses, minus all future taxes. This encompassing figure uses the same math that pension funds use to ensure solvency and is referred to as the 'fiscal gap' by the CBO; simply, it is all the promises made under existing law less all future tax revenue.  And what is this number? Boston University's Laurence Kotlikoff estimates that the fiscal gap is a mind blowing $202T which makes the gap is more like a chasm. Because we hear the term trillion so often, it may help to break the figure down in to a more manageable number. To cover a fiscal gap of $202,000,000,000,000, every one of the 139M working Americans would have to write a check to the government for $1,453,000.  If that sounds like a lot, it is.  In fact, the total value of all the wealth in the country is only $54T, so if you gathered up everyone's 401k, home equity, checking accounts,...(Read Full Post)