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Medicare, Social Security going broke, feds warn

by Kent Covington
Posted 4/24/19, 11:18 am

As talk of government-run healthcare gains steam on the 2020 presidential campaign trail, a new report warned Monday that Medicare and Social Security could soon be insolvent. The annual report by the Social Security Board of Trustees said Medicare is on track for insolvency within the next seven years and Social Security will run dry within the next 16 years. Ahead of next year’s election, President Donald Trump has declared cuts to those programs off-limits. Many Democratic White House contenders say they want to expand Medicare benefits. The two programs combined account for almost half the nation’s federal spending, and costs are continuing to rise. Monday’s report urges lawmakers to “take action sooner rather than later to address these shortfalls.”

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  •  austinbeartux's picture
    Posted: Wed, 04/24/2019 01:26 pm

    Medicare and Social Security insolvency, the national debt/deficit, and in general government (over)spending is a great concern of mine--very distressing.  I want to make wise financial choices and investments.

    A friend of mine says all of this is "funny money" and has no real meaning, significance, or relevance.

    I'm curious what other WORLD readers think.

  • Wayne52
    Posted: Wed, 04/24/2019 02:32 pm

    In 2010 the Bowles Simpson Commission made well-thoughtout recommendations to bring fiscal prudence to government spending.  Because it would have resulted in political pain to implement Congress ignored it.  Years ago political leaders actually cared about the decisions they made and how it affected the country.  That has steadily eroded, and continues to do so. Now politicians care only about self interest and the good of their political party.  They give lip service to the pressing problems of our country and are quick to lay blame on the opposing party, but coming together to take meaningful action, even in the face of clear fiscal dangers, is never given serious consideration.  The national debt is out of control and entitlement programs are rapidly pushing the country over the fiscal cliff.  If in 2020 the freebie bent of particularly the younger generation wins out we as a country are done.  I am so thankful that my hope is not in this world!

  •  austinbeartux's picture
    Posted: Wed, 04/24/2019 02:48 pm

    Good thoughts.  I agree.  Amen to your last sentence. : )

  • Big Jim
    Posted: Wed, 04/24/2019 03:04 pm

    How did people make it in the years before Social Security/Medicare? For a long time this country chugged along just fine without all this government assistance (really wealth redistribution since the gov't is just taking from taxpayers and giving to certain citizens ... minus the "processing" fees). Maybe we should go back to that prior system.

  •  austinbeartux's picture
    Posted: Wed, 04/24/2019 03:33 pm

    That or privatize it all.  Determine a cash value, give it back to citizens, and say "You're on your own."

  • OldMike
    Posted: Wed, 04/24/2019 07:50 pm

    How did people make it before Social Security?  People who weren’t wealthy depended on family to support them, when they could not work any longer. Three (or more) generations in the same home. A lot of people who didn’t have supportive family simply got sick and died at a much earlier age than our current life expectancy; some old folks unable to work very likely just starved to death. 

    Of course it took a lot less to live on than now, because they didn’t have so many modern things to spend money on. A smart phone, a big flat screen tv, air conditioning, new clothes for every season are not exactly essential to survival, but try telling the younger generation they could get by without those things. 

  • Alan R
    Posted: Wed, 04/24/2019 05:40 pm

    Very well put Wayne. Constructive resolution will only result if greater political pain is applied to congress if they don't deal with it. That is, anyone up for reelection next time should NOT get your vote unless congress passes constructive legislation BEFORE the election.

  • news2me
    Posted: Wed, 04/24/2019 05:42 pm

    The only money we seem to have is for foreign gov'ts. The DC swamp spent all the money for the needs of our country long ago. Did we not just give money to more foreign countries. We have lots of money for people who break the law, sanctuary cities. And no money for security. NO you can't have a gun to protect yourself!

    Regarding SS and Medicare. They took money all of my working life. Now that I am eligible for SS and Medicare they have a monthly charge for Medicare, which just went up, and then a deductible which will probably go up. They don't pay for much, like blood tests they say you should get. You also have to pay income taxes on SS. My SS is based on the amount I made back in 1990. Could you currently live on a job that pays what they paid me in 1990?  

    All the gov'ts charge taxes and fees for everything. We have county, city and state taxes added to our u.s. gov't. 

    Watching France implode because they want more is just about where the u.s. is now. Probably one of the reasons GB can't cut loose from the EU. They need their money to pay for their wants.

    We need to cut loose from China making all of the stuff we can't live without. All they are doing is adding to our landfill. I've never seen such shoddy appliances, among other garbage they produce. 

    And where are we? Trump must be impeached because he became President. If he were a Dem. the left would be demanding we give the Pres. respect and help for this country. Instead we go after anyone who gets a job in the WH. SHAME ON THE LIBERALS, PROGRESSIVES, DEMS., and whoever else is not for our country. WHY ARE YOU HERE? except to cause trouble. 

  • OldMike
    Posted: Wed, 04/24/2019 07:30 pm

    Smarter young people are saving substantial portions of their earnings, not hoping for any Social Security. I didn’t really start doing that until the last 15 years or so I worked.  And many retired folks I know are in worse situations—never earned a lot and saving part of their earnings was only a dream. So they are totally dependent on Social Security, even though it is meager.  

    I expect sooner or later Social Security will have to be paid only to those having no other means of support, such as savings or property you can sell. But nothing substantial will be done to correct Social Security’s shortfalls until the situation is totally desperate. The politicians would rather hide from the coming problems than be the ones to give us the bad news. 

    Another thing almost certain to come—Elizabeth Warren has just given us a glimpse of it with her scheme to forgive college loan debt and give free college to everyone. That is wealth tax. Those who want to redistribute wealth, from those who earn a lot to those who don’t, will no longer be content to tax your annual income.  They are preparing to tax your assets a certain percentage every year.  So those who are saving substantial amounts to prepare for their own futures, retirement, illness, etc. are going to get bit to take care of those who did not try to prepare. 

    There are people in need who are unable to help themselves—the disabled, children, etc—and there are people in need who could help themselves but prefer not to make the effort as long as they can get a handout. The liberals’ problem is the inability to distinguish between the two. Anyone with a sob story of oppression or discrimination or just bad luck should be helped, according to the libs, regardless of whether they brought bad situations on themselves or don’t try to help themselves. 

    And that, in my opinion, is the reason we hear the Federal Govt and numerous States are going broke. 

  • Wayne52
    Posted: Wed, 04/24/2019 08:37 pm

    The liberal's plan to wipe out college debt obligations is fiscal madness. That would be forgiveness of nearly $1.5 trillion.  Is that tab going to just be added to the unsustainable national debt, likely.  I spent many years in the financial industry and this plan flies in the face of even the most basic of economic understanding.  Explosive growth in debt is meaningless to them.  If they took all of the the wealth of the truly 1%, who by the way do pay the majority of tax revenues, it would not be enough to fund the government for even one year. Our country is on an unstoppable train barrelling down a dead end track, fiscally, politically, socially, and most of all morally.  This is no surprise, we live in a fallen world that is amping up the ability to destroy itself.  I am ever more grateful each day for the peace I have because my trust is in the Lord. Proverbs 3:5-6 

  •  austinbeartux's picture
    Posted: Thu, 04/25/2019 07:01 am

    Wise words.  Thanks Wayne.

  •  Peter Allen's picture
    Peter Allen
    Posted: Sat, 04/27/2019 12:24 am

    We need more young people!! Be it more children, or young immigrants!  Without rhe young paying in, there will not be enough to pay out.  Simple math.  With the  clamp down on immigration, foreign adoptions, and children, plan on funding your own retirement and health care (medicare runs out of money first).      And let’s face it.  We older people spent all the younger generations money (debt) so we don’t deserve it anyway.  And when our debt breaks the country, they will vote away our benefits because they will outnumber us.  Simple math folks.  Get ready for it.  Don’t but that RV that depreciates like crazy.  Forgot about the Europeon travel.  Unless you can do it without your SS and medicare from the government. What you paid in was already spent... 

  • OldMike
    Posted: Sat, 04/27/2019 01:58 am

    Agreed, we need more young people. Immigrants too. If they come in legally. And yes, it should be easier to come in legally.