Entitlement Programs: A Plan to End Them

Amit Ghate:

America’s financial situation is precarious. Over the past eight years our national debt has doubled to $14.5 trillion, and our total unfunded liabilities now exceed an astonishing $114 trillion. That’s $1,115,000 per federal income taxpayer.

Even the most unrepentant spendthrift understands that these debts and liabilities are unsupportable, nor can they be solved by immorally targeting the rich. Instead, we must enact immediate, across-the-board spending cuts, with special emphasis on the biggest components of our financial wreck: Social Security, Medicare and Medicaid. These entitlement programs constitute the majority of our unfunded liabilities, because despite being labeled “trusts” they’re not actually savings plans.

Rather, the programs are essentially pay-as-you-go schemes. (What little surplus the trusts did accumulate was used to fund other government programs, such that nothing’s been saved[1].) Operating this way has two terrible consequences.

[...]

MORE

About these ads