Government

What politicians don’t tell you and ignore

Listening to Bernie Sanders you would think our biggest problems are inadequate Social Security benefits and inequality. He and certainly his young supporters ignore the real problems lurking that will mostly affect the middle class and the next generation. Here is an example.

With the lat­est re­port of the So­cial Se­cu­rity and Medicare Trustees, the pro­grams’ un­funded li­a­bili­ties, in present value terms, are $60 tril­lion. The worker-to-re­tiree ratio, which was 5.0 when Medicare was cre­ated in the mid-1960s, to­day is 2.5, and headed for less than 2.0 af­ter 2030. Left out of this cal­cu­la­tion, of course, is the grow­ing rank of non-re­tired en­ti­tlement re­cip­i­ents whom tax-pay­ers must also sup­port. Wall Street Journal 2-10-16


imageIn fact the biggest problem we face as a nation is politicians who ignore the core problems, mislead, make unachievable promises and who fail to understand the big picture and unintended consequences.

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2 replies »

  1. I say vote for Bernie and vote for the Donald! Each has made so many promises to so many people, to buy your votes, you can’t tell which ones they will live up to, and prioritize once taking office – if any. Remember, George W. Bush never anticipated spending almost his entire presidency fighting two wars and terrorism.

    Bernie and Donald are the “Arpege” candidates – promise them anything (everything), but leave them smelling bad. (I am showing my age)

    With regard to entitlements, Donald says (at one time or another in the past):
    (1) “… It’s not unreasonable for people who paid into a system for decades to expect to get their money’s worth–that’s not an “entitlement,” that’s honoring a deal. We as a society must also make an ironclad commitment to providing a safety net for those who can’t make one for themselves. …” “… people have lived up to their end of the bargain and paid into the program in good faith. Of course they believe they’re “entitled” to receive the benefits they paid for–they are! … ”
    (2) “… I would impose a one-time, 14.25% tax on individuals and trusts with a net worth over $10 million. … ”
    (3) “… The solution to the Great Social Security crisis couldn’t be more obvious: Allow every American to dedicate some portion of their payroll taxes to a personal Social Security account that they could own and invest in stocks and bonds. … Privatization would be good for all of us. Directing Social Security funds into personal accounts invested in real assets would swell national savings, pumping hundreds of billions of dollars into jobs and the economy. These investments would boost national investment, productivity, wages, and future economic growth. …”

    So:
    (1): No, to the extent that the benefits exceed a return to the taxpayer of his or her contributions plus earnings, it is an “Entitlement”, subject to the whims of Congress and the Administration, and ultimately, future taxpayers.
    (2): Surprised, Donald has advocated a wealth tax in the past. Not that surprising to me since both Donald and Bernie are angling for the “angry” vote – they tell you you’ve been cheated, the game is rigged, the leaders are stupid, whatever it takes to get your vote.
    (3): Admittedly, this was a quote from his book, The America We Deserve, 2000, but, fantasy-land, nonetheless.

    Vote for Bernie, vote for Trump. And if you do, Donald’s title says it all – we will get “The America We Deserve”.

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  2. I cannot believe how many people do not see the problem with 19 Trillion in debt or that Social Security, Medicare and the PPACA are not funded properly.
    I even had one guy post on another site that once the baby boomers die off the problem goes away, lol.
    What do the politicians in D.C. think is going to happen when we are spending more on interest on the debt, than on Defense.
    Some experts think this could happen in just 10 years. If you do not like tax rates at 39%, how are you going to like them at 59% or higher.

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