75 year report Dec 26th, 2005
By: Mike Sylvester
The Social Security administration by law has to issue an annual report telling the country the status of the Social Security system and The Medicare system. This report has to cover the next 75 years, this is a Congressional requirement. The supposed reason for this law is so that Congress can address any future problems in the Social Security program. Unfortunately for America, both The Democratic and Republican Parties are completely ignoring this report and the huge, looming problems in The Social Security and Medicare system.
Please follow this link and read the entire report for yourself.
The opening paragraph says it all. The very people who are administering the programs say that the programs are NOT sustainable.
Over the last few years the Federal government has taxed us at rates of about 19% of Gross Domestic Product. In other words, out of every dollar spent in America the Federal government collects 19 cents in Federal taxes.
Social Security and Medicare currently account for 7% of GDP (or 40% of total government spending!) This is a huge and frightening statistic. 40% of all government spending is used to sustain these government programs!
By 2040 Federal spending on these two programs is expected to DOUBLE and it will be 14% of GDP (Or 80% of total government spending!) This is completely unsustainable. To allow for this the government would have to cut 2/3 of all other existing Federal programs if these Federal programs grow at a much smaller rate then they are growing today.
By 2079 Federal spending on these two programs is expected to hit 20% of GDP. This is more then the entire revenue of The Federal government (If it keeps taxation at 19% of GDP!)
The looming financial crisis cause by these two programs is the largest threat to our children and grand children. Terrorism is a minor threat when compared to this financial threat to our nation.
What are our politicians doing? Spending even more money and not worrying about the problems. They are leaving them for future politicians and for our children and grand children to deal with.
That is shameful.
Chairman of the Libertarian party of Allen County