Government

A debt crisis is coming. But don’t blame entitlements – Eh, not so much; Social Security really is a problem 😩

Whoa, we need to read that again. Recent jump in debt? No! That’s just spin words.

Longer term growth in debt, yes‼️

What’s the difference WHY these programs are drivers of long-term debt?

The fact is they are main drivers and no amount of spin will change that. Has anyone thought about where the $2.9 trillion will come from to redeem the SS Treasury bonds between now and 2034; only sixteen years by the way?

Interesting how the Washington Post mentions the need only for “modest reforms” to keep Social Security solvent. The ability to do that is fast slipping away as Congress continues to ignore making those modest reforms.

Just as entitlements are not the primary cause of the recent jump in the deficit, they also should not be the sole solution. It is important to use the right wording: The main entitlement programs are Social Security, Medicare, veterans benefits and Medicaid. These widely popular programs are indeed large and projected to grow as a share of the economy, not because of increased generosity of benefits but because of the aging of the population and the increase in economywide health costs.

There is some room for additional spending reductions in these programs, but not to an extent large enough to solve the long-run debt problem. The Social Security program needs only modest reforms to restore its 75-year solvency, and these should include adjustments in both spending and revenue. Additional revenue is critical because Social Security has become even more vital as fewer and fewer people have defined-benefit pensions. Medicare has been a leader in bending the health-care cost curve. Reforms to payments and reformed benefit structures in Medicare could do more to hold down its future costs.

Source: A debt crisis is coming. But don’t blame entitlements. – The Washington Post

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2 replies »

  1. I don’t think congress will do anything to remedy entitlements. The overused cliché “kick the can down the road” will continue until it can’t anymore. Those who are in office in sixteen years can sort it all out. If you want to know what happens if you try to alter entitlements, look no further than what’s happening in Guatemala today. Well maybe it won’t be like that here but I can picture AARP whipping up the old timers and thousands of septuagenarians descending on Pennsylvania Ave armed with torches , pitchforks and armored wheelchairs.

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