The federal budget is now about $4 Trillion each year. Only about $1 Trillion of it is discretionary spending so whenever there is talk about shutting down the government is about disagreements on how to spend the $1 Trillion. The rest of the budget is Entitlements like Social Security, Medicare, Medicaid, Welfare, Disability Benefits, ObamaCare and federal pensions. There is no discussion about these programs because they are all on automatic pilot whether there is money to pay them or not; hence the reason the federal government must borrow billions if not trillions of dollars to fund these programs.
The Socialists have been very smart since Franklin Roosevelt's New Deal and Lyndon Johnson's Great Society and now with the addition of ObamaCare because they have installed all of these Entitlements in the federal budget without any regard to actual utilization and cost. So now as Baby Boomers are turning 65 at the rate of 10,000 a day for the next 18 - 20 years, all of these people will automatically qualify for all Entitlement Programs. The only problem is that the money is just not there to pay what has been promised. ObamaCare just adds one more Entitlement that will bankrupt out country. There is no lock box to pay these benefits. Ever since Lyndon Johnson was President, the federal government has been giving IOU's to the Social Security Administration and taking the money that we all contribute for Social Security and Medicare and spending it on other government programs.
The federal government will either have to borrow to pay these Entitlements, adding to our $18 Trillion National Debt, or just print money, or a combination of both, which will make the dollar worthless and cause very high inflation and interest rates. This day is not far off as all the Baby Boomers start to retire. Socialists refuse to deal with Entitlements; but the day of reckoning is just around the corner. What is likely to happen is that young people will have to pay a lot more in their Social Security and Medicare contributions to support their aging parents.
And, there is likely to be means testing at some point so that Americans with substantial assets will be denied Social Security even though they have paid in their entire working lives. Social Security is already taxed for couples earning more than $40,000 a year. Medicare is already means tested; but they could force wealthier Americans to pay even more.
Finally, Obama's Executive Order giving Amnesty and legal status to 5 million or more illegal aliens will make all of this even worse. Once these illegal aliens have legal status, they will be able to access all Welfare Programs, as well as, Social Security and Medicare. The money just isn't there to pay for all the promised Entitlements on automatic pilot, including local, state and federal government employee pensions. It just does not divide. If the Socialists confiscated every dime of wealth in the country, not just a higher percentage, which they would love to do, it still would not be enough money to cover all promised Entitlements.
Like every pyramid scheme, the folks that are supposed to collect benefits 10 - 20 years from now will end up with nothing because it is impossible to tax our way out of this mess. Of course, the government could steal the money we all have in our 401K's as another means of redistribution of income. Given the federal government's history, if the Socialists did confiscate these monies, it should surprise no one.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment