The Challenge Before Us Policymakers, businesses and citizens need to share responsibility for past failures and develop a plan for future successes. Past generations of Americans have responded to major challenges with collective sacrifice and hard work. Will ours also rise to the occasion? (@)) www.kpcb.com USA Inc. | Summary 447 Current Observations About America... ¢ On many fronts, USA Inc. is in great shape, but it has one big problem — USA Inc. spends too much and, in effect, is maxing out its credit card. USA Inc. must address the problem. ° In 2009, 64% of America’s revenue went to Social Security, Medicare & Medicaid, compared with 31% in 1980 and 20% in 1970. ¢ Using current projections, 100% of America’s revenue in 2025 will go to Social Security, Medicare, Medicaid and Net Interest Expense. ¢ This raises the question, ‘How will America pay for the likes of education, national defense, homeland security, infrastructure improvement, R&D, law enforcement, postal service, etc.?’ ¢ USA Inc.’s fundamental tradeoff is that it must balance its FUTURE (education) with its PRESENT (national defense & homeland security) and its PAST (Social Security & Medicare & Medicaid). KP Source: 2009 data per White House OMB, 2025 forecast per CBO’s Alternative Fiscal Scenario. Ce USA Inc.| Summary 448 HOUSE_OVERSIGHT_021065