The US federal budget is facing a crisis due to demographic trends and mandatory spending. The Congressional Budget Office projects that federal debt held by the public as a share of the economy will exceed the record set by World War II by 2030. This debt shows no signs of declining, unlike in the 1940s.
Demographic Trends
The ratio of seniors to the total population will reach 1 in 5 by 2030, up from 1 in 8 in 2008. This mechanically raises Social Security and Medicare costs, which are legally obligated to continue. In 1952, there were six people between ages 25 and 64 for every one person 65 or older, but today there are only 2.7.
The US population growth will rely on immigration after 2030, as deaths will begin to exceed births. The entitlement programs, including Social Security and Medicare, were designed under 20th-century demographic expectations that no longer hold true. Social Security has run annual deficits since 2010 and is projected to go insolvent in 2032, while Medicare’s budget-busting makes Social Security’s look modest by comparison.
FDA Streamlining
The FDA has approved Replimune’s immunotherapy for metastatic melanoma and Moderna’s mRNA flu vaccine, which could have been available sooner without regulatory delays. The FDA’s bureaucratic processes have hurt patients and American innovation, and the new leadership may be mounting a much-needed turnaround.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
