A few facts pieced together from reliable sources. Noted economist Milton Friedman said,
"All economic actors seek the most beneficial opportunities, and in doing so , help move the economy toward maximum prosperity. The role of the state in the economy is thus reduced to that of a "night watchman", playing a very minor role in facilitating this activity-protecting private property rights, maintaining law an order, and defending the system from external aggression".(reference, "30-Second Economics, edited by Donald Marron, copy write 2010)
If only it were that simple. The government now has to manage healthcare, social security, wealth fare and Medicaid.
The trustees of the Social Security & Medicare system report that,"Social Security and Medicare are the two largest federal programs, accounting for 36 percent of federal expenditures in fiscal year 2011. Both programs will experience cost growth substantially in excess of GDP growth in the coming decades due to aging of the population and, in the case of Medicare, growth in expenditures per beneficiary exceeding growth in per capita GDP. Through the mid-2030s, population aging caused by the large baby-boom generation entering retirement and lower-birth-rate generations entering employment will be the largest single factor causing costs to grow more rapidly than GDP. Thereafter, the primary factors will be population aging caused by increasing longevity and health care cost growth somewhat more rapid than GDP growth.
(Reference: www.ssa.gov/oact/trsum)
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