Posted on 01/08/2009 12:14:12 AM PST by reaganaut1
WASHINGTON — President-elect Barack Obama said Wednesday that overhauling Social Security and Medicare would be “a central part” of his administration’s efforts to contain federal spending, signaling for the first time that he would wade into the thorny politics of entitlement programs.
As the Congressional Budget Office projected a record $1.2 trillion budget deficit for this year even before the costs of the nearly $800 billion economic stimulus package being taken up by the House and the Senate, Mr. Obama stepped up his effort to reassure lawmakers and the financial markets that he plans a vigorous effort to keep the government’s finances from deteriorating further.
Speaking at a news conference in Washington, he provided no details of his approach to rein in Social Security and Medicare, which are projected to consume a growing share of government spending as the baby boom generation ages into retirement over the next two decades. But he said he would have more to say about the issue when he unveiled a budget next month.
Should he follow through with a serious effort to cut back the rates of growth of the two programs, he would be opening up a potentially risky battle that neither party has shown much stomach for. The programs have proved almost sacrosanct in political terms, even as they threaten to grow so large as to be unsustainable in the long run. President Bush failed in his effort to overhaul Social Security, and Medicare only grew larger during his administration with the addition of prescription drug coverage for retirees.
(Excerpt) Read more at nytimes.com ...
Right now SS takes in more money than it sends out. That reverses in seven years. At that time SS starts funding from IOU's that the government has put in. Since the government hasn't saved the money that it borrowed, it must meet those obligations through new taxes or through spending cuts. There will be some compromises but basically the funding is good until around 2040.
In seven years the welfare state runs head-on into Social Security. Social security will win except for the exceptions I noted earlier. The welfare state is, to use the liberals' favorite expression, unsustainable.
I feel good about the future.
God Bless.
Well, that's not good.
The article is suggesting that we will run a $2 trillion deficit --- however, our total outlays were only $2.9 trillion for 2008. (Summary 2008 Budget Tables from the federal Government Printing Office).
The only way to run that kind of deficit is by running the presses. While I realize the Democrats are truly champions are the "spend" side of the equation, this truly is historic. Our GDP is only running about $14 trillion as of the latest BEA release of GDP numbers.
For the government to run a deficit that would be 1/7th the size of the entire economy would be an interesting proposition.
The short-term focus in such a step would be controlling the amount of annual interest that we pay out. There are at least two ways to do this: (1) borrow the money, and keep interest rates down in the real zero range (which is how Japan managed a very large public debt relative to its GDP), or (2) don't borrow the money, but instead rescind the cap on the issuance of dollars directly by the Treasury Department and simply issue the dollars under the Legal Tender Act.
With (2), at least the government wouldn't have to pay any interest on those new dollars. (If our government were to seriously consider such a plan (not likely!), I would ask them to also please consider letting large bills again circulate --- even in Europe you can now get a 500 euro bill, and with the likely inflationary effect of such an influx of new cash into the system, I think larger bills such as the old $10,000 would be handy.)
Has there ever been a case of a Ponzi scheme that did not self-destruct?
cutting programs that Americans actually like. “
Really LIKE? How about really EARNED.
I have paid into that phony system for 20 years, imagine those who paid for 50 years! This is outright theft from their paycheck!!
IN all his “FDR” glory, he is screwing over FDR’s program!
It will be entertaining to watch Barry deal with SS.
It is an election sacred cow, so he’ll have to be careful.
The pols who make all the rules for SS dont pay into it. When will this fraud end?
AARP and ASA have lobbyists who probably had faxes going to all 533 CongressCritters before the print was dry on this news article.
ASA is a Conservative Group for Seniors, please join if you’re not already a member . . . http://www.americanseniors.org/
As someone who is 46 years old, I knew by the time I was 30 that SS would not exist when I reached retirement age. I still believe it, now more than ever.
Who in their right mind trusts this Chicago thug to make a positive difference in this country.
Depends.
Is hubby part of the class enemy?
Is he a kulak?
Is he an antisocialist wrecker?
Is he a running dog?
Is he a capitalist roader?
Does he stand with the People, or is he a landlord?
Is he an enemy of the revolution?
Where does he stand on the Dear Leader?
You'll need answers to all of those questions before you can figure out what's going to happen to his SS benefits.
Gee, ya think?
“In seven years the welfare state runs head-on into Social Security.”
Well, that should be interesting, as the fat welfare mommas and their drunk boyfriends see their beer and satellite TV budgets cut. Where will their idiot commie kids get gas for their ATVs to trespass and destroy private property and ride out into the bush to break into secluded rural homes?
Tough times ahead for obama’s voting block.
Related.
http://www.freerepublic.com/focus/f-news/2160824/posts
Big Slide in 401(k)s Spurs Calls for Change
The way Obama is going to fix social security and medicare is simple, he is going to seize all 401K’s and IRA and create a new social security system for all Americans on top of the old failing one.
Medicare will be eliminated roughly the same way he’ll seize the assets of all the HMOs and private medical insurance companies combine them into one super government health care system.
Socialism at it’s worst, the government seizes all competition to it’s programs for the good of the people.
I hope to be able to keep my Military retirement. I have a 21 months left. I will still get a job to pay the bills, but I would like to have the retirement I earned.
Yes....
He sees the monthly outlay to Geezers as the largest single budget outlay and needing to be controlled.
Me thinks us Geezers are in trouble while this man is ruling
The people who paid in for 50 years were also voting for 50 years for politicians who SPENT their payroll taxes each year. So those people are indirectly responsible for SS being unsustainable.
This is outrageous.
Translation for those who may not see it:
Retiree pensions:
401ks and IRAs will be raided to supplement the Social Security System. (and you thought you were saving for yourself, didn’t you?)
Health: We will get nationalized health care.
(this will guarantee more people will die with inferior care given them).
Problems: Solved
First thing a RAT can think of is cut SS. Same with Klinton,
What Clinton did was tax SS benefits. That was a 15% tax on the poor that no one else had to pay.
This socialist democrat congress is out of control and needs a desperate overhaul.
Throwing out Reid in 2010 would be a very good start. Heads up Nevada.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.