The total cost of Social Security, Medicare, and Medicaid is projected to leap from 8.4% of GDP in 2005 to 18.9% of GDP by 2050.
· Federal program spending is projected to reach 27.6% of GDP by 2050, while net interest spending will consume an additional 9% to 46% of GDP (depending on whether massive deficit spending increases interest rates).
· Unless Social Security, Medicare, and Medicaid are reformed, lawmakers face three options:
A) Raise taxes every year until taxes are 60 percent ($11,000 per household) higher than today;
B) Eliminate every federal program except Social Security, Medicare, and Medicaid by 2045; or
C) Do nothing and watch the federal debt expand so much that even a minor interest rate response would induce a spiral of rising debt and interest rates, threatening the entire economy.
Entitlements are out of hand. All of these should be unnecessary. People expect the government to take care of them, and their families - instead of providing for themselves, or let private charities take them up in hand. Where in the Constitution do we find provisions for giving people other people's money? General welfare does not mean payments from the government! Sorry, but entitlements should go. Give em the heave-ho. When Social Security was started, it was Social Security INSURANCE. It doesn't mean a guaranteed paycheck for 11, 12 or more years. Insurance means you don't rely on it for your sole support - you SAVE money while you are working. Too many people don't do this, and then they wail and bemoan the fact that their SSI check is "too small". What about their families providing for them? That's fallen into disfavor, however, it would be the best system around.
1 year ago