Seen over at the Wall Street Journal (subscriber link):
“If early and meaningful action is not taken” in reforming programs like Social Security and Medicare, then “the U.S. economy could be seriously weakened, with future generations bearing much of the cost,” Mr. Bernanke said in prepared testimony to the Senate Budget Committee. His prepared remarks didn’t address the monetary policy outlook or current economic conditions.
Mr. Bernanke warned of a “vicious cycle” as the roughly 80 million Baby Boomers start retiring and drawing Social Security and Medicare benefits. That spending will significantly widen the budget deficit, leading to higher debt payments on those deficits.