Well, here is a surprise. Our government is overspending again…by a lot!
The U.S.’s long-term financial obligations grew by another $2.5 trillion from last year. That means, if you factor in all the obligations such as Social Security, Medicare and other government programs, the debt is about $531,472 per household. (and you thought your Visa bill was high didn’t you?!)
The big liabilities from 2007…
Civil Servant Retirement: $106 billion
Social Security: $900 billion
Medicare: $1.2 trillion
The numbers are actually much worse when you get into accounting methods.
Corporations and states are required to count new financial obligations, even if the payments will be made later. Spoiler alert: Our government will not follow those accounting rules.
What does this mean? Medicare, for example, has an unfunded liability of $30.4 trillion. I guess the government better start looking under seat cushions in a real hurry.