On more than one occasion, I have written about how our entitlement programs are going down an unsustainable path. As early as last week I wrote how President Trump’s first budget proposal would not call for any cuts to Medicare and Social Security.
And while this might sound nice, simply put this is impossible to sustain.
As I wrote then…
“If ANYONE has been paying attention, they understand that both Social Security and Medicare are living on borrowed time. Depending upon the estimate you find, both programs are in the hole from $50,000,000,000,000 – $100,000,000,000,000 dollars. By the way, that’s 50 TRILLION to 100 TRILLION dollars in unfunded liabilities. It is fundamentally impossible to shore up these programs with additional taxes alone. The quicker we come to that realization that better.”
Now comes an article from The Hill, Budget chief: Trump could review entitlement reform after first budget.
On the surface, it sounds like Trump being a typical politician, going back on a campaign promise. After all, Trump repeatedly said on the campaign trail that he wasn’t cutting Social Security. Take a look at the video below. 60 seconds in is where the statement is made…
“Office of Management and Budget Director Mick Mulvaney said Monday that President Trump could soon review potential reforms to Social Security and Medicare — but he stressed that the reforms under consideration wouldn’t touch payments for current beneficiaries.”
In all sincerity, this is an inevitable result. There is no way that, as 10,000 baby boomers retire EVERY DAY over the next 20 years we will be able to pay the Medicare and Social Security obligations that this nation has promised.
This is just a fact,
The quicker we deal with this the better.
I do like what he said about not cutting benefits to current beneficiaries…
“Mulvaney, a fiscal hawk, said he’s trying to garner support for entitlement reform that follows Trump’s campaign promise not to touch Social Security and Medicare payments for current recipients.”
That should be the cornerstone of any reform bill, but the real issue is with the massive amount of those who will be entering the Social Security and Medicare system in the late 2020’s and beyond,
I am going to keep tabs on this but unfortunately this is a case of pure math. There are too many promises made by government, not enough money to pay for this and no way that taxes can be raised to the point to pay for it all.
My advice to those who are expecting any form of Social Security and Medicare (and any pension by the way) in the future is to listen to what the government promises you and divide by 2. That’s what you will probably end up with.