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As Debt Limit Deadline Looms, Congress Must Address Exploding Entitlement Costs

New Book Offers Road Map to Pulling U.S. From Entitlements Cliff

Institute for Policy Innovation

DALLAS – The national debt has soared to a record high of $22 trillion and a debt limit deadline is looming. Yet Congress still has no plan to address these challenges.
The most significant factor contributing to this out-of-control spending is the cost of the nation’s entitlement programs, more than 60 percent of all federal spending. This level will only grow unless Congress takes steps recommended by a new book, “On the Edge: America Faces the Entitlements Cliff.” 
“On the Edge” authors Merrill Matthews, Ph.D., and Mark E. Litow explain how Medicare, Medicaid, Social Security and some 80 U.S. welfare programs are pushing the country to the precipice of an entitlements cliff. The authors expose the pattern employed by politicians both here and abroad: Identify a perceived social need, propose a new safety-net program, swear that the program is financially sustainable, pass the legislation, then keep expanding it until it becomes a drain on the economy, both now and for generations to come.
“Once entitlement programs are entrenched, politicians start trying to expand them, making them financially unsustainable,” write Matthews and Litow. “To address the funding shortfall, they usually either raise taxes or cut benefits, especially for higher-income people. Most often, they just try to ignore the problem so that future generations will have to deal with it.” In following this approach, the U.S. has spent trillions of taxpayer dollars on entitlement programs, created large amounts of debt, and faces trillions more in unfunded liabilities.
But for a Congress that will listen, “On the Edge” explains how the U.S. can move away from the crumbling patchwork of unsustainable government programs and easily address funding for healthcare, welfare, and retirement in a way that is financially sustainable long-term. The reforms proposed by the book grants working Americans the freedom to set aside their own money in their own accounts that invests in and grows with the economy.
Avoiding the entitlements cliff is not difficult, it just takes adopting actuarially sound programs, write Litow and Matthews. “We would see millions of Americans start the slow but steady climb toward financial independence as they begin creating wealth that belongs to them.”
“If Congress were to implement these changes, it would dramatically reduce the size of government and of its role in our finances and our lives,” write the authors. “And we would expect an economic explosion the likes of which the country has never seen, as trillions of dollars enter capital markets instead of government coffers.”
Copies of “On the Edge: America Faces the Entitlement Cliff” are available at


The Institute for Policy Innovation (IPI) is an independent, nonprofit public policy organization based in Dallas. IPI resident scholar Dr. Merrill Matthews is available for interview by contacting Erin Humiston at (972) 874-5139, or For copies of “On the Edge: America Faces the Entitlement Cliff”, visit