A recent article in USA Today reported something that our client, the Illinois-based Institute for Truth in Accounting has maintained for a long time--the U. S. has under-funded by trillions promises it has made for the future. Just take a look at these facts from the article:
The government added $5.3 trillion in new financial obligations in 2010, largely for retirement programs such as Medicare and Social Security. That brings to a record $61.6 trillion the total of financial promises not paid for.
This gap between spending commitments and revenue last year equals more than one-third of the nation's gross domestic product.
Medicare alone took on $1.8 trillion in new liabilities, more than the record deficit prompting heated debate between Congress and the White House over lifting the debt ceiling.
Social Security added $1.4 trillion in obligations, partly reflecting longer life expectancies. Federal and military retirement programs added more to the financial hole, too.
The $61.6 trillion in unfunded obligations amounts to $534,000 per household. That's more than five times what Americans have borrowed for everything else - mortgages, car loans and other debt. It reflects the challenge as the number of retirees soars over the next 20 years and seniors try to collect on those spending promises.
Nmedia produced a series of public service announcements for the institute which highlight the consequences of making decisions without good information.
So what can you do to stop the use of political math?
2) Help bring F.A.C.T. based budgeting into your governments.
3) Support the Institute for Truth in Accounting by volunteering with us or providing a donation. We need funding to help calculate true state deficits, and to provide the resources needed to spread the word about F.A.C.T. based budgeting and accounting.
Our lawmakers need the facts before they make decisions. That's a key reason Nmedia has proudly supported the efforts of Truth in Accounting.
Truth in Accounting is a nonpartisan effort. They are not affiliated with any special interest groups or any political party, and all contributions are tax-deductible. Please go to their websites to learn more about on how you can get involved in Truth in Accounting and Sign up today for e-newsletter updates.