This blog frequently explains that government spending is the problem, not budget deficits. Regardless of whether it is financed by taxing or borrowing, every penny of spending diverts resources from the productive sector of the economy. I narrated a video explaining why excessive spending is bad from a theoretical perspective. I did another looking at the empirical evidence for smaller government. And I had another video discussing why deficits are a symptom and the real problem is bloated budgets.
Nonetheless, some people seem convinced that deficits and debt are the real problem. While I think that focus is a bit misguided, I certainly agree that there is something utterly immoral about spending today and imposing a fiscal burden on future taxpayers (especially since so much government spending is for current consumption and transfers).
But here’s some really depressing news for the anti-debt crowd. Today’s deficits and debt actually are just the tip of the iceberg. Here’s a new video from the Center for Freedom and Prosperity that reveals the enormous unfunded liabilities resulting from entitlement programs. As the video explains, unfunded liabilities are promises by politicians that impose enormous long-term obligations for more spending and debt.
The narrator of the video is Kelly McDonough, a student at American University and a former Cato Institute intern. If this video is anywhere near as successful as the other video narrated by a former Cato intern, perhaps this will become a new tradition.
[…] additional background on the issue of debt, unfunded liabilities, and present value, this video is a great […]
[…] additional background on the issue of debt, unfunded liabilities, and present value, this video is a great […]
[…] additional background on the issue of debt, unfunded liabilities, and present value, this video is a great […]
[…] “funded liabilities” are hardly an improvement over “unfunded liabilities” since that simply means debt-financed spending becomes tax-financed spending. From the […]
[…] If you want to know the difference between the various types of government debt – including “unfunded liabilities” – watch this video. […]
[…] If you want to know the difference between the various types of government debt – including “unfunded liabilities” – watch this video. […]
[…] If you want to know the difference between the various types of government debt – including “unfunded liabilities” – watch this video. […]
[…] additional background on the issue of debt, unfunded liabilities, and present value, this video is a great […]
[…] additional background on the issue of debt, unfunded liabilities, and present value, this video is a great […]
[…] additional background on the issue of debt, unfunded liabilities, and present value, this video is a great […]
[…] additional background on the issue of debt, unfunded liabilities, and present value, this video is a great […]
[…] additional background on the issue of debt, unfunded liabilities, and present value, this video is a great […]
[…] additional background on the issue of debt, unfunded liabilities, and present value, this video is a great […]
[…] The National Debt is Huge, but Unfunded Liabilities Are America’s Real Red-Ink Challenge […]
[…] The National Debt is Huge, but Unfunded Liabilities Are America’s Real Red-Ink Challenge […]
[…] Unfortunately, you can’t avoid the massive unfunded liabilities of Social Security, Medicare, and Medicaid by moving across state […]
[…] Unfortunately, you can’t avoid the massive unfunded liabilities of Social Security, Medicare, and Medicaid by moving across state […]
[…] spending financed by red ink. But today’s amount of red ink is relatively small compared to unfunded liabilities (i.e., measures of how much future spending will exceed projected […]
[…] additional background on the issue of debt, unfunded liabilities, and present value, this video is a great […]
[…] additional background on the issue of debt, unfunded liabilities, and present value, this video is a great […]
[…] additional background on the issue of debt, unfunded liabilities, and present value, this video is a great […]
[…] arbitrarily assume the program disappears after 75 years, but the approach used to calculate “unfunded liabilities” is artificial since it is based on how much money would need to be invested today to finance […]
[…] not arbitrarily assume the program disappears after 75 years, but the approach used to calculate “unfunded liabilities” is artificial since it is based on how much money would need to be invested today to finance […]
[…] not arbitrarily assume the program disappears after 75 years, but the approach used to calculate “unfunded liabilities” is artificial since it is based on how much money would need to be invested today to finance […]
[…] not arbitrarily assume the program disappears after 75 years, but the approach used to calculate “unfunded liabilities” is artificial since it is based on how much money would need to be invested today to finance […]
[…] arbitrarily assume the program disappears after 75 years, but the approach used to calculate “unfunded liabilities” is artificial since it is based on how much money would need to be invested today to finance […]
[…] arbitrarily assume the program disappears after 75 years, but the approach used to calculate “unfunded liabilities” is artificial since it is based on how much money would need to be invested today to finance […]
[…] the video, produced by the Center for Prosperity, that accurately puts all this information together (the […]
[…] spending on these programs will skyrocket far beyond current revenues. That growing gap, which is explained in this short video, is sometimes known as “unfunded […]
[…] spending on these programs will skyrocket far beyond current revenues. That growing gap, which is explained in this short video, is sometimes known as “unfunded […]
[…] spending on these programs will skyrocket far beyond current revenues. That growing gap, which is explained in this short video, is sometimes known as “unfunded […]
[…] spending on these programs will skyrocket far beyond current revenues. That growing gap, which is explained in this short video, is sometimes known as “unfunded […]
[…] this first one Cato’s Dan Mitchell explains the Rahn curve and how it is killing any chance of return to […]
[…] And I specifically warn about the looming explosion of entitlement spending as the baby boom generation retires. […]
[…] The nation has a giant fiscal problem, but it’s not the annual deficit or the national debt. The true crisis is the $100-trillion-plus unfunded liability for entitlement programs – especially Medicare and Medicaid. This is why America deserved to be […]
Can anyone explain to me how unfunded liabilities are calculated?
Thanks
[…] nation has a giant fiscal problem, but it’s not the annual deficit or the national debt. The true crisis is the $100-trillion-plus unfunded liability for entitlement programs – especially Medicare and Medicaid. This is why America deserved to […]
[…] nation has a giant fiscal problem, but it’s not the annual deficit or the national debt. The true crisis is the $100-trillion-plus unfunded liability for entitlement programs – especially Medicare and Medicaid. This is why America deserved to […]
[…] in mind that these figures do not include unfunded liabilities. For those who worry about debt, those are the truly shocking numbers (at least for the United States and other nations with government-run pension and health […]
Totally agree but could you suggest how can the people restraint the size of government?
Don’t we all know that democracy is the worse form of government except for the rest that have been tested?
Quah, Chee-Heong
[…] in mind that these figures do not include unfunded liabilities. For those who worry about debt, those are the truly shocking numbers (at least for the United States and other nations with government-run pension and health […]