>Looks like the Heritage Foundation said it better than I ever could:
We have three bad options for dealing with the growth of mandatory entitlement (Social Security, Medicare, Medicaid) spending:
1. Increase taxes to 30% of GDP (from about 18% today). This means a 25% payroll tax instead of 12%, marginal income tax rates in the 40% range for everyone, or perhaps a new 20% sales tax on *everything*. (estimates mine)
2. Allow the “big 3” and interest to become the only thing the federal budget spends money on (goodbye: defense, education, highways, bridges, food safety, everything)
3. Explode the deficit to the point that we spend 50% of GDP on interest. This assumes we can find someone dumb enough to lend us 500% of GDP.
They left out everyone’s favorite: Hyperinflation! Though I don’t think that helps because the entitlements are indexed to inflation. Dammit. Would have been worth it to take my social security check to McDonalds and having to shop off the $10,000,000 menu (what a bargain!).