America Will Soon Owe More Than Its Citizens Are Worth
December 15, 2008
The sum of America’s debts and other financial commitments is about to exceed the collective net worth of its citizens, PGPF has calculated. Growth in the government’s unfunded promises for social insurance programs such as Medicare, combined with a drop in Americans’ net worth due mainly to lower home equity values, is causing this unprecedented shift.
PGPF’s calculations are based on the new consolidated federal financial statements as of September 30, 2008 and do not reflect the additional toll taken by more recent market declines, bailout packages, and record October and November deficits. The statements show an estimated $56.4 trillion in debts, liabilities, and promises for Medicare and Social Security versus a total household net worth of $56.5 trillion.
Since its launch in July 2008, the Peter G. Peterson Foundation has invested nearly $11 million in grants to raise awareness of, and seek solutions to the fiscal challenges posed by the rising costs of health care and retirement and near-zero household savings rate.
Related link: Press Release - America Will Soon Owe More Than Its Citizens Are Worth
