The Associated Press is reporting the same thing that I heard United States Comptroller David Walker speaking about last year on his “Fiscal Wake-Up Tour” with the Concord Coalition.
From the Associated Press report:
The trustees, issuing their once-a-year analysis, said the resources in the Social Security trust fund will be depleted by 2041. The reserves in the Medicare trust fund that pays hospital benefits were projected to be wiped out by 2019.
Click here to read full article
David Walker and others have been discussing this issue for a long time. It is no secret that America is going to be in a fiscal crisis is steps are not taken now to solve the problem. Republicans blame the Democrats for pork-barrel spending and vice versa. Occasionally, the Democrats will change the subject to attack the Iraq war, but even if we eliminated the entire budget of the Pentagon (not something I advocate) we could not save Social Security and Medicare.
The problem with Social Security is that Americans are on average living much longer than they were just a few years ago. In fact, a CDC report shows that life expectancy increased from 47.3 years in 1900 to 77.8 years in 2004. Obviously, if people are living longer once they retire it will cost more money to pay for them to live once they retire. So when Dennis Kucinich proposes lowering the retirement age I question how he thinks the American people can pay for it without in the end paying all our money in taxes and then not being able to afford things such as roads or a military. In the short term such ideas may sound good, but they are the ideas that have sold our country into debt slavery.
Of course, with Roth IRA’s and other retirement and investment opportunities Social Security could be phased out if steps are taken now. When Hillary Clinton says that it would be just terrible for Americans to put their money in the stock market I wonder if she realizes that the stock market is much safer than to be forced to invest your money into Social Security which is ran by the government and is running out of money faster than a governor in a brothel. When you encourage people not to save and invest by telling them the government will manage your retirement for you they become unlikely to plan their own retirement. When you encourage people to take the initiative and save and invest and care about their future they will be more likely to do so.
The following is a video of United State Comptroller David Walker on Glenn Beck: