Entitlement Spending - America's Death Sentence

[WichitaStateGuy]

Incredible article outlining how the status quo is untenable in regard to entitlements.

"Those reasonably claiming “I just want the benefits I earned!” should be considered allies for reform. Setting lifetime Social Security and Medicare benefits equal to the net present value of each person’s lifetime contributions to the systems — and not a penny more — would eliminate most of the long-term shortfall."

How can this problem be fixed? I'm 30 years old... my wife and I didn't sign up to support the retirement of one worker leaving the workforce.

Wish there would be more fervor behind getting our finances in order rather than going trillions of dollars into more debt.

It's the most predictable economic catastrophe in history... basic math.

[RoyalShock]

This is one of those things where by the time both parties agree (or heck, even one party makes it a priority) it needs addressed it will be too late. Neither party will stop increasing the debt ceiling, let alone restrict their ability to overspend with a balanced budget amendment. They just don't see debt as a real problem. They will just raise the debt ceiling when those unfunded liabilities require it.

And this doesn't take into account all these expensive programs being proposed by the crop of Dem candidates. If people cared about the debt situation, they would be booing those candidates off the debate stage and heckling them at their town halls.

[SB Shock]

How can this problem be fixed?

Ideally freeze or slow the growth in spending in government. But neither party have the stomach for that so the only option is:

a. Taxes will have to be increased.
b. Benefits will have to frozen or even decreased.

Look to Europe to see what that look like.

[Shockm]

This is one of those things where by the time both parties agree (or heck, even one party makes it a priority) it needs addressed it will be too late. Neither party will stop increasing the debt ceiling, let alone restrict their ability to overspend with a balanced budget amendment. They just don't see debt as a real problem. They will just raise the debt ceiling when those unfunded liabilities require it.

And this doesn't take into account all these expensive programs being proposed by the crop of Dem candidates. If people cared about the debt situation, they would be booing those candidates off the debate stage and heckling them at their town halls.

This has to be bipartisan. In the past, when this was brought up by Republicans, the Democrats used it against them (remember the grandma in a wheel chair being pushed off the cliff) so the Republicans just stopped pushing it. There are extremists on both sides on this issue too. However, if both sides were genuine, there are middle of the road reforms that are still possible. The prtoblem is that if the Democrats continue to ignore it, it will be too late for middle of the road solutions. Additionally, Democrats want to have SOCIALIZED MEDICINE FOR ALL and then bring in illegal aliens to be covered by the benefits.

Soon Grandma (in a wheel chair) really will be pushed off of a cliff.

[WuDrWu]

Politicians have over promised and underdelivered for decades to achieve ONE goal. Make themselves rich and powerful, and ALWAYS at the expense of their constituency.

It's really simple, You're promising something that can't be delivered because A)you believe people are entitled to things they don't earn or B) you want your payoff either through money or power or both.

The math on Social Security is pretty simple. As people live longer you either have to move back the age to start collecting or collect more money from those still working. If you were at a net zero before, and now recipients live on average 6 months longer, well then folks you're going to have a shortfall.

But we live in a narcissistic and selfish society where nothing can be taken from me, but a whole bunch can be taken from you. And there's nothing that makes me believe that's changing anytime soon.

[WichitaStateGuy]

Make no mistake, gentleman... the impending debt crisis isn’t some hoax. It can be calculated with basic math. It’s the most predictable economic catastrophe no one is talking about.

[jdshock]

The math on Social Security is pretty simple. As people live longer you either have to move back the age to start collecting or collect more money from those still working. If you were at a net zero before, and now recipients live on average 6 months longer, well then folks you're going to have a shortfall.

The additional factor in the equation is population growth. Longer life expectancies wouldn't be an issue if you had additional population growth resulting in added revenue. Unfortunately, population growth is also shrinking. The combination of longer lives and reduced population growth makes the math incredibly simple, as you've suggested.

[atlwsu]

That is certainly an argument for legal productive immigration. We need more working tax payers either by birthing them or letting them in. I don't care what color they are as long as they make green

[wufan]

The additional factor in the equation is population growth. Longer life expectancies wouldn't be an issue if you had additional population growth resulting in added revenue. Unfortunately, population growth is also shrinking. The combination of longer lives and reduced population growth makes the math incredibly simple, as you've suggested.

100% true. Population growth also begs for more population growth to sustain. It’s a cycle.