In an article that discusses a serious issue, the laibility of state governments for retiree health benefits, USA Today also tosses in a bit of holiday fearmongering. It tells people that the liability of all levels of government for retirement pension and health benefits is at least $57.8 trillion, or $510,000 per household. So as to avoid ruining anyone's holiday spirit, income by the same measure is projected to be around $1,000 trillion or more than $10 million per household. This context should have been included in the story, but I guess they couldn't find the room. One other important point, about two-thirds of this projected liability would disappear if health care costs only increase due to aging and otherwise rise at the same pace as per capita income. This is yet another disaster that is predicated on exploding health care costs. If we ever fix our health care system, then most of the basis for this scare story disappears. (Thanks to Peter Hart from Fairness and Accuracy in Reporting for the tip.)
--Dean Baker
