Social Security, Medicare, and Medicaid make up the three most relied upon and expensive government programs. Hold on a minute, Social Security isn’t an entitlement. Workers paid into it all their lives, so it would be there for their retirement. But congress through the decades borrowed from it to support their spending habits. As a result, they must borrow to make ends meet.
The true entitlements are Medicaid and Welfare, in which none of those deadbeats paid into the programs, but are there with their hands out, wanting their fare share.
The cause of our deficit is rooted in current and long-term obligations of these programs due in large part to rising costs and an aging population. Of course, the workers paid into Social Security, and also they are stuck paying for all the deadbeats on Welfare. And this isn’t the fault of the aging population.
Today we have a national debt topping $17 trillion which translates to a personal debt to every American of over $45,000 dollars and a debt of over $130,000 dollars per taxpayer.
The current national debt pales in comparison to future obligations of Social Security, Medicare, and Medicaid. In the not too distant future, the United States is estimated to add an additional debt of over $8 trillion in unfunded Social Security and a mind-numbing approximately $38 trillion in unfunded Medicaid liabilities. These unfunded liabilities amount to more than two and a half times of America’s 2012 Gross Domestic Product.
The Congressional Budget Office has said that entitlements are only going to grow unless and until there are systemic changes that fundamentally alter the way entitlements are determined, financed, and paid out.
Why is it there’s always a shortage of Social Security but never a shortage in Welfare money?
Today, the number of people using Medicaid is at an all-time high, yet the number of workers paying in is at an all-time low. By 2040, Medicare will cover 88 million enrollees and the cost per enrollee by then is estimated to more than triple.
The longer our politicians wait to fix entitlements, the worse it gets. As we have seen with unfunded pensions, retirees who thought they could rely on them soon found out that there was no longer any money to pay out what was not coming in.
Simple solution: Cut those off Welfare, and make them earn their keep, and pay taxes.