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by houseabsolute
5775 days ago
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I think that number is a little sensationalist. What's the net present value of the obligations? My simplified calculation makes these assumptions: 1. Discount rate of 0.04.
2. Uniform payments of the entire $2 trillion over the next twenty years.
Under those assumptions the present value is only about $1.4 trillion over twenty years, or about $70 billion per year. A substantial sum, to be sure, but not compared to a number of other things we do. A higher discount rate around 6% decreases the yearly cost about 20%. |
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