Put Medicare, Social Security in general fund
| Newspapers last week published yet another piece in which they warn that certain federal agencies “are creeping closer to going broke.”
There are 400+ federal agencies, including the Department of Defense, Congress, the Supreme Court and the White House. To help people visualize what “going broke” might mean for a federal agency, here are some of the sentences in the editorial, substituting “White House” for the agencies mentioned. For instance: “The government reported Tuesday that the White House” will be insolvent in eight years.” Anyone reading this might wonder how it is possible for the White House to be insolvent. True, the White House runs a deficit every year. True, it spends liberally, and receives no direct taxes. But would the federal government really allow the White House to go broke?? Similarly, have you ever heard of the federal government allowing Congress, the Supreme Court or the Department of Defense to run out of money? An agency can go bankrupt only if its principle goes bankrupt, and the principle for all federal agencies is the federal government. So an agency can go broke only if the entire federal government does. It’s simply unthinkable that the federal government would allow these, or any federal agency, to go broke. And indeed, even during the darkest days of the Great Depression, no federal agency ever has gone bankrupt. Not one. So why do we see repeated warnings that two federal agencies – Social Security and Medicare – are on the verge of bankruptcy? Are these agencies less important than the other 400+ federal agencies, all of which spend more than they take in? Would their demise have less effect on America? What shall we do? Hmmm . . . The government supports all the other federal agencies in the same way. It allocates money from the general fund, and deficit spends where needed. Here’s a thought, how about rolling Social Security and Medicare into the general fund, and supporting them the same way we support the other 400+ agencies. Then we can end the scare stories about federal agencies going broke. Rodger Malcolm Mitchell |
What was the quantity & magnitude of the federal agencies during the Great Depression, vs now? A lot less.
The debt, with SS & MC rolled in as obligations, is around $56 x10^12. These institutions that you presume will never go bankrupt probably won’t. Nor will SS / MC; America is broke – and what that bankruptcy will look like is hard to say.
SS was looted into general revenues to bail out the bloated federal gov. Creation of these welfare programs was a potential death trap from day one, for any recipient. It was just a matter of time before it snapped and starting taking heads off – that day is upon us.
I don’t take pride in being so dark, but unless there’s some way to convince 300 x10^6 people to each come up with a surplus of productivity equal to $185 x10^3 very soon, our lenders will start the bankruptcy proceedings on the US to get their returns and elderly people will soon be starving in the streets (streets repo’d by China).
Actually, SS and Medicare money DID start getting counted in the federal budget (and used to cover other federal expenses) not all that long ago. Gee, it MUST have a been a Democrat who fiddled the books that way, wasn’t it?
Ooops. I believe it was during Ronnie Reagan’s first term that they decreased the actual deficit by doing just that. Hmmmm
Agencies do not go bankrupt. They are eliminated. Social Security and Medicare are not agencies. They are government programs. Current social security taxes from individuals are used to pay current beneficiaries. If there is any excess, it is used to buy government securities, that is, fund the national debt.
Why would anyone think that the Social Security Administration would not get revenue from Congress if they need it? It seems that everyone knows that Social Security is a pyramid scheme but Congress is afraid to reform it.
hs
Learn your history. It was LBJ who put the SS funds into the general fund. A democrat.
http://www.network-democracy.org/social-security/ff/faq/trust.html
The only way to prevent a total financial meltdown is for the Government to immediately cut spending by 25 percent. The problem is they won’t do it.
Federal powers of taxation are a tap directly into the national economy keg. For generations politicians of both parties have been telling special interests to belly up to the bar - drinks are on the house. Every session of Congress has provided more glasses and mugs in the form of spending programs, earmarks, entitlements, and grants.
The arrogant elite in news, entertainment, higher education and government have relentlessly promoted expansion of government into every area of society. Collectivism has been upheld as the compassionate, fair, easy solution to all our society’s problems great and small. Tastes great. Less filling. And free, to boot!
Well, the government worshipers have been very successful. The bar is full of alcoholics ready for another drink on the house. Let’s have another round before last call. Don’t worry about the tab. Don’t worry about the hangover. Getting up to go to work tomorrow is for the suckers and teetotalers. Party on…….
I love it. Our beloved government of both parties has completely mismanaged every task given them. Medicare and SS are on the path to financial ruin. We will run a nearly 2 trillion dollar deficit on this years budget and there are some super misguided people that want our great government to take over their healthcare. Brilliant!!!
A#, spot on as usual but no one is listening to you. It’s easier to blame the other guy.
With the latest projected fiscal year deficit, our fed govt will borrow over $17 for every man, woman, and child in this country EVERY DAY. Over $65 borrowed on behalf of every family of four EVERY DAY. Honestly, for anyone who backs this borrowing and spending madness, if the bill for some $455 was in you mailbox every week, would you still back these programs? Well, someone eventually has to pay. Do you realize it will be your own children and grandchildren? Wouldn’t that be just a little selfish?
Doubtingthomas, my quick math says that we are borrowing 6,000 dollars for each of the 300 million people in this country for this YEAR ALONE!!!!!
That means that my family of 4 will have $24,000 borrowed on our behalf against our will. $2,000 bucks a month.
Pathetic. Stop freaking borrowing money Government.
Five years ago the Republicans were pushing to privatize Social Security.
Said it would provide the American people with secure retirements and allow Wall-Street to help reduce government expenditures. Of course, when the Democrats said no, Bush decided to find another way help his Wall-Street buddies by providing them with a $900 billion dollar bail-out in 2008.
You were warned in 2001 that the Bush Republicans would steal your pensions and 401Ks. They did. And they wanted more.
If the Republicans got their way in 2003, they would have wiped out 38% of your Social Security benefits too….
Oh well, the fickle fluctuations of a “free-market”.
Please pass the Grey Poupon.
And the ditto-heads ask for more.