John C. Goodman

In 2012, the federal government will require one out of every 10 dollars of general income tax revenues to keep its promises to seniors under Social Security and Medicare. That means to balance the budget, the federal government will have to stop doing one in every 10 other things it has been doing.

By 2020, the federal government will have to stop doing one in every four things it has been doing, if seniors are to get all their promised benefits. By 2030, about the midpoint of the baby boomer retirement years, the federal government will have to stop doing almost one in every two things it does today. There is only one way out of this crisis: move to a funded retirement system in which each generation saves and invests and pays its own way.