3. All entitlements are fair game. To begin with... there are four basic ways of reducing the cost of entitlements such as Social Security and Medicare:
Increase eligibility ages;
Trim benefits;
Require recipients to have higher medical premiums, co-payments, and/or deductibles;
- And establish an income group where benefits gradually phase out and an income roof where no benefits are gained for you if above it.
I'm not quite sure where to include this comment. Along with the entitlements are the commitments that the government has made. These will increase the debt load. The Pension Benefit Guarenty (sp?) Corporation recentlyt announced that their assests are only exceeded by liabilities by 14 billion. Yet, there a many companies that will be required to contribute more cash to the pensions they have (2006 act requirement). Many companies are going bankrupt or are in dire straights. There will be many more pension benefits picked up by the PBGC. Additionally, more and more of government budgets are allocated to funding pensions rather than current operations.
The FDIC will be on the hook for the depositor accounts of those banks not bought.
The Fed, cities and other government organizations are announcing the costs to maintain the infrastructure is outpacing the funds collected. (Examples include NYC sewer and water system, US Interstate system bridges - Minn).