They’ve been called “the greatest generation” and I heartily agree. They grew up during the depression, willingly risked the ultimate sacrifice in World War II, and then employed the virtues of personal responsibility and a strong work ethic to make the United States
Throughout their working lives they contributed their share to government coffers and so upon retirement they certainly deserve full reimbursement—and then some. Rightfully, our nation’s Social Security and Medicare programs are repaying these patriots to the full extent promised. However, regardless of how well deserved those entitlement payments may be, there is a problem for those who follow—we’re out of money. All of the tax money that the greatest generation gave to the government is gone. Not so much because the deserving have been repaid, but because the government spent it—all of it. There is no money in the government coffers from which Social Security and Medicare payments are made--none. All current and future payments must be funded by taxes and further government borrowing. This is the very real problem that future generations face.
With a current public debt of about $14.5 trillion (plus or minus a few billion) and official projections of annual budget deficits of nearly $1 trillion annually (plus or minus a few billion), the prospects for funding future Social Security and Medicare/Medicade payments are bleak to say the least. Particularly considering that these programs account for roughly 44 percent of annual Federal government spending (plus or minus a few billion). Consider that the defense budget accounts for about 25 percent and welfare for about 13 percent.
So what, if anything, can be done about it? There is a relatively simple, if politically hostile, remedy. Retirement contributions by employed citizens can be directed into private securities where they are far more secure. The government cannot spend money that does not belong to them. If you put a dollar in a private fund, it is probable that most of it will be there when you need it. If you send a dollar to the government it is a certainty that they will spend it the next day. They must do so simply to keep pace with promised entitlements and unavoidable interest payments on the debt. While private investment firms must protect your money in order to exist, government must spend your money in order to exist.
It is understandable that those retired persons who rely heavily upon Social Security and Medicare funds greatly fear cuts to these programs. And there are many millions somewhat more fortunate seniors who rightly feel that they too deserve repayment for a lifetime of contributions—financial and otherwise. However, given the present congressional leadership that is so heavily indebted and addicted to government spending, even the most radical proposals for Social Security and Medicare reform would likely have little or no impact on the entitlement promise made to those of the greatest generation. They are safe. It is only those of younger generations that are at risk. More than at risk, those promised payments can only be made if taxes are raised substantially and continually over the coming decades.
And so I appeal to you, and to anyone who hears, to fight aggressively for the future of our children and our children’s children. Fight not for vague “entitlement reform” but for nothing less than radical reductions to government control of future Social Security and Medicare contributions. Promised payments to those of the greatest generation are relatively secure. It’s time to consider the fate of younger generations—our legacy.
