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excerpt:

Demographic Reality and the Entitlement State

http://www.house.gov/paul/tst/tst2006/tst111306.htm (click link to read entire article)
David Walker, Comptroller General at GAO, has been on a speaking tour of the U.S recently-- and he pulls no punches when explaining just how precarious our nation's entitlement system really is. He explains that Social Security and Medicare are headed for a train wreck because of demographic trends and rising health care costs. The number of younger taxpayers for each older retiree will continue to decline. The demand for "free" prescription drugs under Medicare will explode. If present trends continue, by 2040 the entire federal budget will be consumed by Social Security and Medicare. The only options for balancing the budget would be cutting total federal spending by about 60%, or doubling federal taxes.

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