Saturday, November 5, 2011

Entitlements Must Be Reformed

National Center for Policy Analysis
By Veronique de Rugy

The American debt-to-gross domestic product (GDP) ratio continues to baffle those who look for solutions. Even if lawmakers allow the Bush tax rates to expire at the end of 2012, the debt-to-GDP ratio is still projected to increase dramatically over the next decade. At the core of the issue, which will become even more significant with the retirement of the baby boom generation, are Social Security, Medicare and Medicaid. Realistic debt plans will have to include some reform to rein in the growth of entitlement program spending if they are to derail America's unsustainable course, says Veronique de Rugy, a senior research fellow at the Mercatus Center.

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