Little Raven
On Walkabout
Because the numbers just don't add.
But while the government can (and ultimately will) do that, someone still has to take it in the shorts. Expect a lot of screaming about who that lucky group of people should be.
Now there's a reason that the government doesn't have to account for things the way that corporations do. At the end of the day, the government can always say "Yeah, we said we'd give you X...but we lied." Corporations ultimately can't do that, much though they try, so it makes sense to have the two entities play by different rules.The federal government recorded a $1.3 trillion loss last year far more than the official $248 billion deficit when corporate-style accounting standards are used, a USA TODAY analysis shows.
The loss reflects a continued deterioration in the finances of Social Security and government retirement programs for civil servants and military personnel. The loss equal to $11,434 per household is more than Americans paid in income taxes in 2006.
"We're on an unsustainable path and doing a great disservice to future generations," says Chris Chocola, a former Republican member of Congress from Indiana and corporate chief executive who is pushing for more accurate federal accounting.
Modern accounting requires that corporations, state governments and local governments count expenses immediately when a transaction occurs, even if the payment will be made later.
The federal government does not follow the rule, so promises for Social Security and Medicare don't show up when the government reports its financial condition.
But while the government can (and ultimately will) do that, someone still has to take it in the shorts. Expect a lot of screaming about who that lucky group of people should be.