The Social Security Fantasy
One of the great challenges of our time is to prevent Social Security and other programs for the elderly from taking over the national government. It could already be too late. Recently, the Congressional Budget Office reported that federal spending on the 65-plus population now amounts to 40 percent of non-interest outlays, up from 35 percent in 2005. By 2029, the CBO projects it to be 50 percent. Per the CBO “Over the next decade, as members of the baby-boom generation age and life expectancy increases, the number of people age 65 or older is expected to continue rising — by about one-third, from 16 percent of the population in 2018 to 20 percent in 2029. … Federal spending for older people is anticipated to … [take] up a greater share of federal resources.”
By the CBO’s math, two-thirds of the projected growth in federal spending over the next decade, after adjustment for inflation, will stem from programs for the elderly — mostly Social Security and Medicare, but also long-term nursing home care under Medicaid and civil-service retirement.
NOW THE REAL MYTH OF THE ABOVE STATEMENT IS SERIOUSLY FLAWED ONE: PAYMENTS FROM SOCIAL SECURITY TO RECIPIENTS COME FROM A TRUST FUND NOT THE NATION BUDGET LINE ITEMS!!!
WHY CONGRESS AND THE ADMINISTRATION’S VIEW OF THAT SAFETY NET CANNOT BE PLACED IN THE SAME POSITION AS BUDGETED ITEMS. IF WE CAN GET THAT SMALL ITEMS PLACED INTO CONTEXT, THEN WE CAN DISCUSS THE PROBLEM INTELLIGENTLY.
Another point that should be brought into view is that many years ago under President Reagan’s administration he took almost 300 billion dollars from that trust fund to pay down the national debt which was never paid back. Note: Congress pay your bill along with interest from 1984 and then we can begin discussing social security stability. Oh, how quickly we forget!!