ICYMI: Why $1 trillion deficits are here to stay

Between 2019 and 2049, the Social Security system will collect $56 trillion in payroll taxes and benefit taxes, and spend $75 trillion in benefits. That resulting $19 trillion cash shortfall must be financed with general revenues. Over that same period, the Medicare system will collect $17 trillion in payroll taxes and dedicated revenues, and spend $61 trillion in benefits, producing a $44 trillion cash shortfall.

The federal borrowing that is scheduled to finance much of these shortfalls will add $40 trillion in interest payments on the national debt.Add it all up, and Social Security and Medicare face a $103 trillion cash shortfall over the next 30 years, including those resulting interest costs. The rest of the federal budget will run a $23 trillion surplus….

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