Social Security, Medicare and Medicaid benefit millions of Americans, but are major drivers of our national debt, which has skyrocketed to more than $21 trillion. If every U.S. taxpayer was billed for an equal share of that debt, we would each be charged about $400,000.Again, let me reference this Ticker, just one of dozens I've written over the years, that points out the truth: There is no crisis in Social Security. There is a problem which can be addressed, but the problem was caused directly by tampering with interest rates within The Fed and Congress along with allowing millions of able-bodied people to claim "disability" -- and some of them have been documented to have run marathons while allegedly "disabled."
The cause of our out-of-control national debt is rooted in current and long-term obligations of these three big entitlement programs, due in large part to rapidly rising costs and an aging population.
Nonetheless Social Security is fixable without a large amount of pain. Why? Because it is a progressive tax-based system (you get more back in benefit for the first dollar you pay in via taxes than later ones), it holds a relatively large body of bonds which by design were constructed to allow "pig-in-python" style bursts of baby creation (ala The Boomers) as the designers anticipated that happening (along with "busts" at other times) and the tax rate is, in relative terms, high. (12.4% of all wages earned up to the cap -- you only "see" half of it as a payroll deduction -- unless you're self-employed!) Further the boomer pig in the python will start to recede in ten years -- 2028 -- as boomers start dying and so will their outsized proportion of the "draw" on said system.
In other words the conflation of Social Security, Medicare and Medicaid is an intentional lie that is repeated for political purposes and any politician or other policy "wonk" who does so deserves to be destroyed as his or her intent is to wreck this nation on a permanent fiscal basis by generating enough screaming among seniors to guarantee the actual problem is not addressed.
The entire problem with our budget lies in Medicare and Medicaid. The reason is multi-fold but is focused in the following places:............https://market-ticker.org/akcs-www?post=234584