Although the United States' $319 billion fiscal 2005 deficit was considerably lower than the previous year's, it is still imprudently high---especially given that federal spending is expected to increase dramatically when the Baby Boomers begin to retire later this decade.
The federal government's long-term liabilities and net commitments, such as those relating to Social Security and Medicare, have risen from just over $20 trillion in fiscal 2000 to more than $43 trillion in fiscal 2004, in large part because of the passage of the Medicare prescription drug bill in December, 2003. This translates into a burden of more than $150,000 per American and $350,000 per full-time worker. Those amounts are growing fast because of continuing deficits, our aging society's longer lifespans, slower workforce growth and compounding interest costs.
David M. Walker, Comptroller of the U.S. in BusinessWeek, November 14, 2004