When politicians and policy wonks use
the phrase "the looming entitlement crisis," most listeners know
exactly what that means: Social Security and Medicare. Spending on
these programs is rampant, nearly $1 trillion in fiscal 2006, and is
projected to grow exponentially over the coming decades. By 2082, due
to the aging of baby boomers, rises in health-care expenses, and
expected lower fertility rates, Social Security and Medicare are
projected to cost nearly 18 percent of gdp--roughly what the entire
federal government costs today. It is now common, if as yet unacted
upon, wisdom in the Beltway that if the price of these programs is not
reined in, Americans will have to suffer either substantial tax
increases, unsustainable budget cuts, or both. But the bad news does not end there. It turns out that Social
Security and Medicare are not the only out-of-control federal
entitlements. Two little known entitlement programs, Social Security
Disability Insurance (ssdi) and Medicaid Long Term Care (ltc), are also
increasing at unsustainable rates. Call these the forgotten
entitlements. . . . Henry Olsen is a vice president at AEI and the director of the
National Research Initiative. Jon Flugstad is a research assistant at
AEI.
Director of the
National Research
Initiative
Henry Olsen
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