What Every American Needs to Know About Government Entitlement Reform

Retirement Policy Outlook, No. 2, p. 1, September 2010

7 Pages Posted: 26 Jan 2012  

Andrew G. Biggs

American Enterprise Institute

Date Written: September 16, 2010

Abstract

The long-term budget challenge can be summarized in one word: entitlements. Without Social Security, Medicare, and Medicaid, the budget would be roughly in balance over the coming decades. Left unreformed, however, entitlement costs will become so wildly out of step with revenues that a fiscal crisis will be inevitable. Balancing the budget over the next twenty-five years would require an immediate and permanent 30 percent increase in all federal taxes. Over longer periods, the prognosis is even grimmer. The alternative is to rethink the entitlement philosophy by focusing resources where they are most needed, sharpening incentives to reduce waste, empowering individuals to make choices, and buttressing Americans’ own retirement savings.

Keywords: Entitlement, Social Security, Medicare, Medicaid, Budget

JEL Classification: H63, H53

Suggested Citation

Biggs, Andrew G., What Every American Needs to Know About Government Entitlement Reform (September 16, 2010). Retirement Policy Outlook, No. 2, p. 1, September 2010. Available at SSRN: https://ssrn.com/abstract=1991371

Andrew G. Biggs (Contact Author)

American Enterprise Institute ( email )

1150 17th Street N.W.
Washington, DC 20036
United States
202-862-5841 (Phone)

HOME PAGE: http://www.aei.org

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