Reply #17: Multi-Trillion Dollar Deficits Toast Greenbacks

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According to the 2006 GAO Financial Report for the US, which evaluates the federal budget according to general accounting principals, we had a $4.6 trillion dollar loss last year. This corresponds to over $2500 a month for every US worker. Clearly this is not sustainable. If not addressed, these losses will turn in to multi-trillion dollar yearly deficits and the US dollar will become worthless much like Germany in the 1920's.

Four trillion of last year's loss was attributable to increases in unfunded health-care and retirement expenses.

We can't inflate our way out of this because these are future expenses.

We can't tax our way out because there would be no money left to live on

So, we must find a way to reduce these health care and retirement expenses.

It is not feasible to "un-fund" these programs because it would result in riots in the streets. Every other industrialized country except South Africa provides universal health care for their citizens, even dictatorships. They don't do this out of the kindness of their hearts, they do it to keep their citizens stable.

It is not feasible to euthanize everyone who is retired and sickly for obvious moral reasons.

The only path left is to extend quality life span and quality career span. This means that people will pay into the system longer and take money out later. In today's economy there are many people who either desire or need to extend their working life. Unfortunately, the current private insurance system penalizes those employers who retain older workers. In fact, the average retirement age dropped from 67 years in 1950 to 62 years in 2000 -- probably because of employer health-care considerations.

Ironically, the one technology that has the greatest promise to extend quality lifespan and thereby dramatically reduce our projected deficits is stem cell therapy -- which of course GWB has promised to veto.