-By The Heritage Foundation
The year 2008 is not just an election year. It is also the year that marks the beginning of a demographic transformation that threatens the fiscal stability of this country. Already, Social Security, . But this year, the first of the nearly 80 million baby boomers begin to draw out, instead of contribute to, our entitlement programs. The consequences of this shift will come quickly and will be staggering.
Already Medicare spends more each year than it takes in. In just six years, Medicare will draw more than 45% of its budget from general revenues. Already Social Security and Medicare consume 7.5% of our GDP. Unless changes are made, that figure will jump to 13% by 2030. According to the Congressional Budget Office, the increased deficits or taxation required to cover this explosion in spending would cripple the U.S. economy. A diverse coalition of 16 budget experts from seven think tanks (including American Enterprise Institute, Brookings Institution, Concord Coalition, The Heritage Foundation, New America Foundation, Progressive Policy Institute and Urban Institute) met for more than a year before producing a paper calling for honest political leadership on the issue. Now at least one congressman has come forward with an honest proposal.
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