Truth in Accounting Asks for More Accurate Accounting of the Deficit
The federal government's financial condition deteriorated rapidly last year, far beyond the $1.5 trillion in new debt taken on to finance the budget deficit, a USA TODAY analysis shows.
The government added $5.3 trillion in new financial obligations in 2010, largely for retirement programs such as Medicare and Social Security. That brings to a record $61.6 trillion the total of financial promises not paid for.
This gap between spending commitments and revenue last year equals more than one-third of the nation's gross domestic product.
Medicare alone took on $1.8 trillion in new liabilities, more than the record deficit prompting heated debate between Congress and the White House over lifting the debt ceiling.
Social Security added $1.4 trillion in obligations, partly reflecting longer life expectancies. Federal and military retirement programs added more to the financial hole, too.
The $61.6 trillion in unfunded obligations amounts to $534,000 per household. That's more than five times what Americans have borrowed for everything else - mortgages, car loans and other debt. It reflects the challenge as the number of retirees soars over the next 20 years and seniors try to collect on those spending promises.
'The (federal) debt only tells us what the government owes to the public. It doesn't take into account what's owed to seniors, veterans and retired employees,' says accountant Sheila Weinberg, founder of the Institute for Truth in Accounting, a Chicago-based group that advocates better financial reporting. 'Without accurate accounting, we can't make good decisions.'
What Can You Do?
How can you help stop the use of political math?
1) Educate yourself about federal and state revenues and spending -- ask your legislators for the real numbers.
2) Help bring F.A.C.T. based budgeting into your governments.
3) Support the Institute for Truth in Accounting by volunteering with us or providing a donation. We need funding to help calculate true state deficits, and to provide the resources needed to spread the word about F.A.C.T. based budgeting and accounting.
Our lawmakers need the facts before they make decisions. That is what Truth in Accounting is all about.
Truth in Accounting is a nonpartisan effort. We are not affiliated with any special interest groups or any political party, and all contributions are tax-deductible.