They admit that the government faces major financial issues with Social Security, Medicare and employment as America ages.

In 1946, 3.4 million babies were born, a 22 percent increase from the previous year. Over the next 18 years, births swelled until 78 million baby boomers populated America. Now in 2006, these boomers are aging and with age comes retirement and health problems.

Baby boomers now make up 26 percent of the population. Such a large percent will put tremendous demands on Medicare and require support from the younger generation.

In 2008 the oldest of the baby boomers will reach 62, the earliest age to receive Social Security. By 2011 the boomers will be eligible for Medicare.

“Medicare’s financial difficulties come sooner than those confronting Social Security,” according to the trustees of www.ssa.gov. “The sooner [the financial difficulties] are addressed the more varied and less disruptive can be their solutions.”

According to many statistics, health problems will further burden government spending on Medicare. The number of obese Americans ages 55-64 has jumped from 31 percent (1988-1994) to 39 percent (1999-2002).

At the same time, statistics provide hopeful outlooks for the country’s financial future. The Department of Health and Human Services said boomers might enjoy better health. Since 1950, the death rate for heart disease has dropped 60 percent and stroke 70 percent.

“The influence of aging on society depends on which view you accept,” said Gary Burtless, a senior fellow at the Brookings Institutions. “I think there’s a lot of evidence that people are healthier mentally and physically than they used to be.”

Economists predict a financial train wreck if the government continues spending at the current rate. Knowing the upcoming baby boomers will pressure Medicare and Social Security spending, Alan Greenspan warned that bloated budget deficits could endanger the economy over the long term.

“In the end, the consequences for the U.S. economy of doing nothing could be severe,” Greenspan said. “The looming retirement of 78 million baby boomers will put massive strains on the country’s finances."