If the U.S. Was a Business

If the U.S. were a corporation, it would be in bad shape, says venture capitalist and Silicon Valley analyst Mary Meeker. It has a net worth estimated at negative $44 trillion, and it’s underinvested in productive capital, education, and technology—the tools it would need to get back on track. But the outlook isn’t all bad: We’re actually in better shape now than Apple was in 1997. The primary culprit, says Meeker, is entitlement programs. If current trends continue, according to the Congressional Budget Office, entitlement spending and net interest payments combined will equal all of federal revenue by 2025. Consequently, Meeker’s plan to get USA Inc. back in the black requires lawmakers to make some potentially very unpopular decisions: raising the retirement age to reduce Social Security spending, cutting back Medicare by, among other things, having it consider the cost effectiveness of treatments, and raising taxes “a little.” Meeker says the key may be communicating the seriousness of the U.S.’s situation to the public: “If the American people embrace the need for bold action, their political leaders should find the courage to do what's right.”