The Concord Coalition

The Concord Coalition describes itself as “a nationwide, non-partisan, grassroots organization advocating generationally responsible fiscal policy.”  The organization is devoted to overcoming partisan politics in an attempt to reign in national debt.

A number of papers can be found on the organization’s site. These include the recently released “Will the First Boomer Budget be a Bust?” The essay makes it clear that prospects are not good for the future fiscal well-being of the United States. Retiring Baby Boomers will further stress the nation’s already troubled federal budget, as Social Security, Medicare, and Medicaid expenses dramatically increase.

For more than a generation, US fertility rates have been well below the levels reach during the Baby Boom. Now that the children of that era have started to retire, current and future workers can count on being severely taxed to support the transfer programs upon which so many of the elderly depend.

As the Coalition’s Boomer Budget paper states, “The first baby boomers have already begun to receive Social Security retirement benefits. During the next presidential term, they will qualify for Medicare. Given this context, our nation’s longterm fiscal challenge should be at the heart of the budget debate on Capitol Hill. So far, that is not the case and there is no reason to think the situation will change any time soon.”

The entire essay should be read by anyone interested in the future viability of the US economy. Here are a few of the paper’s projections, if the government continues in its tracks:

• 2027 Social Security, Medicare, Medicaid and net interest consume all revenues. The deficit hits 10 percent of GDP; debt held by the public exceeds 100 percent of GDP.
• 2031 Net interest exceeds Medicare.
• 2037 Debt held by the public equals 200 percent of GDP.
• 2039 Net interest exceeds Medicare and Medicaid.
• 2040 The deficit reaches 20.5 percent of GDP, exceeding the size of today’s entire federal budget (20 percent of GDP).
• 2043 Social Security, Medicare and Medicaid consume all revenues and debt held by the public equals 300 percent of GDP.
• 2047 Debt held by the public exceeds 400 percent of GDP.
• 2048 Interest costs, at 20.2 percent of GDP, exceed the size of today’s budget.
• 2050 Debt held by the public equals 500 percent of GDP.
• 2053 GAO model blows up because the economy is in ruins.

The US is careening into fiscal disaster, and there is precious little indication that the federal government will soon reverse its course.

Remember, the Concord Coalition is non-partisan.