You think the Auto Industry have it Bad with Health Cost....

Explains the AP, “If the United States government conducts business as usual over the next few decades, a national debt that is already $8.5 trillion could reach $46 trillion or more, adjusted for inflation. That’s almost as much as the total net worth of every person in America – Bill Gates, Warren Buffett and those Google guys included.”

“A hole that big could paralyze the U.S. economy; according to some projections, just the interest payments on a debt that big would be as much as all the taxes the government collects today,” the AP continues.

Walker says that every year we don’t work to reduce the deficit, it grows by $2 trillion to $3 trillion, especially as the Baby Boomer generation retires and starts drawing from Social Security, Medicare and Medicaid.

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“This is about the future of our country, our kids and grandkids,” Walker said in a speech at Austin's historic Driskill Hotel. “We the people have to rise up to make sure things get changed.” The speech was a stop on Walker’s “Fiscal Wake-Up Tour,” a circuit of economists and budget analysts.

A study by economists Jagadeesh Gokhale of the American Enterprise Institute and Kent Smetters of the University of Pennsylvania estimate that the Medicare’s long-term fiscal shortfall will be about $5 trillion by 2030 as measured in 2004 dollars. By 2080, the economists say the imbalance will be $25 trillion.

Today, Medicare accounts for 13 percent of federal spending. That’s four times as much as in 1970. By 2030, the Congressional Budget Office projects that Medicare will be about a quarter of the federal budget, says the AP.

Over the course of the next century, Social Security will swing from a surplus to a deficit. Currently, the government uses the Social Security surplus to make the deficit appear better than it actually is by accounting for Social Security as more of an asset than a liability, which it is soon to become.

Boston University economist Lawrence Kotlikoff calculates that closing the budget gap and paying off the existing deficit would “require either an immediate doubling of personal and corporate income taxes, a two-thirds cut in Social Security and Medicare benefits, or some combination of the two,” says the AP.

“Realistically what we hope to accomplish through the fiscal wake-up tour is ensure that any serious candidate for the presidency in 2008 will be forced to deal with the issue,” says Walker. “The best we're going to get in the next couple of years is to slow the bleeding.”