The $1 trillion dollar states’ pension gap recently reported by the Pew Center is just the "tip of the iceberg,” according to Chilean economist José Piñera Echenique, best known as the architect of Chile's private pension system based on personal retirement accounts and the founder of The Center for Pension Reform.
“I am extremely worried about all the debts America has,” Piñera said.
“You have a $100 trillion problem,” which is the amount owed for hospital insurance, Medicare, drug benefits and Social Security, Piñera told Fox News.
“This is the real debt of America, which amounts to 700 percent of GDP… which will be paid by your children and grandchildren,” Piñera says, unless the U.S. government defaults on its obligations to American citizens or raises taxes.
“It’s like you’re passengers on the Titanic,” Piñera notes. “You see the Titanic is going toward the iceberg of aging populations … that feel entitled to all the huge benefits that politicians have thrown to the people, but they have not funded the benefits for the future.”
“There is a gigantic disconnect between what people want the government to pay them in the future and what they want to pay in tax.”
Americans overwhelmingly approve of Social Security, and are willing to pay more to protect it, the Huffington Post reports.
A 2009 report from the National Academy of Social Insurance and the Rockefeller Foundation showed 61 percent of respondents have a favorable view of the program, 88 percent want to know that Social Security will be there for them even if they won't need it, and 87 percent don't mind paying Social Security taxes because of the benefits provided to retirees, widows, the disabled, and children of deceased parents.
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