According to recent calculations by the Peter G. Peterson Foundation (PGPF), the sum of America’s debts and other financial commitments is about to exceed the collective net worth of its citizens. That means that for the first time in our history, we’ll owe more money than all of us have combined.
What’s responsible for this unprecedented shift? 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.
PGPF’s calculations are based on the new consolidated federal financial statements as of September 30, 2008, which notably, do not reflect the additional toll taken by more recent market declines, bailout packages, and record October and November deficits.
But there’s hope yet. Since its launch this year, the Foundation has invested nearly $11 million in grants to raise awareness of, and seek solutions to the nation’s fiscal challenges. As Americans say goodbye to 2008, and look towards the new year, PGPF will continue to work with its extraordinary grantee partners as they focus on a variety of timely initiatives to help put our nation back on a fiscally prudent and sustainable path.
This is a nonpartisan very informative film and I felt it was well worth the 30 minutes of time to watch it. If you are at all in doubt about how serious this economic crisis actually is this is a must see.
The film is produced by the Peter G. Peterson Foundation:
Founded by the senior chairman of The Blackstone Group with a personal commitment of at least $1 billion, the Foundation is dedicated to increasing public awareness of the nature and urgency of key fiscal challenges threatening America’s future, and to accelerating action on them. To address these challenges successfully, we work to bring Americans together to find sensible, long-term solutions that transcend age, party lines and ideological divides in order to achieve real results.