>a balanced budget, how long would it take to climb out of that hole?
Take a look at the Office of Management and Budget's FY2005 budget projections and you'll see the real elephant in the tent that no national politician will address:
http://www.whitehouse.gov/omb/budget/fy2005/tables.html
The relevant summary is in this table:
Table S�12. Budget Summary by Category
Here are the items of interest to me, 2009 estimates (in billions):
Defense - $467
All other Discretionary Spending - $476
Social Security - $608
Medicare - $418
Medicaid - $251
What this says is that non-discretionary spending in five year will account for more than 63% of the entire Federal Budget. The percentage of the budget eaten by SS, Medicare and Medicaid is growing every year, and sooner or later the outlays will exceed revenues from FICA taxes. When that happens, everyone under 50 is screwed.
I live in a neighboorhood with lots of retired folks, many of whom have owned their homes for 40 years and therefore (by dint of Prop 13 in California) pay almost nothing in property taxes. I am friendly with a bunch of these guys who hang out at the local donut shop. They tell me to get to work in the morning so I can contribute my FICA and pay for their breakfasts.
My point is that the U.S., like every other first world nation, faces a timebomb in the budget. What's the answer? Privatization? I have no idea but it scares the hell out of me.
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