A recent Rasmussen Poll demonstrated a scary statistic. Only 51% of Americans know that most federal spending goes to defense, Social Security, and Medicare. Ponder that a second, on a random day walking down the street, half of the people that you pass actually understand what the three primary drivers of government spending in WADC is. It gets worse though, 30% believe incorrectly that this is not true, and 19% aren’t sure. Kind of helps understand how Obama got elected, doesn’t it?
Now the good news is that only 35% knew this last February, we are making some ground here.
So, I consider this post a public service announcement, please pass this along to your ignorant friends and family members.
The first recipient of Social Security “benefits,” Ida May Fuller, paid a total of $24.75 in Social Security taxes. She inevitably lived to be 100 years old. She collected $22,888.92 total in her retirement, a return of 92,000 percent on her initial “investment.”
In 1935 less than 6% of the population was age 65 or older. By 2008, that percentage doubled to 12.8. The number of Americans ages 65+ will more than double over the next 40 years, reaching 80 million in 2040. The number of adults 85+ will nearly quadruple in that same time. (Unless Obamacare kills them first, but that’s another topic for another post!)
In 1960, 5 workers funded the “benefits” of each retiree. Today that ratio is 3:1, by 2030 it will be 2:1. Imagine a boy and girl born today. In 2030, they marry and start a family. This young couple will have to support themselves, their children, and the Social Security & Medicare benefits of their very own retiree.
When the Social Security Act was signed in 1935, it was done with the support of 81 Republicans in the House. When Medicare was passed in 1965, 70 Republicans voted in favor. More recently, the Republican controlled Congress passed Medicare Part D. For a party that supposedly hates entitlements, they sure don’t walk their talk.
The thing that’s so scary about Medicare is how underfunded it is. The payroll tax funds only Part A, and that is even in deficit. Parts B and D are not “social insurance” and are only funded 25% by premiums, taxpayers finance the other 75% through general tax revenues. Medicare is essentially a welfare program for seniors.
Of the $31,406 that Washington spent per household in 2010, $9,949 was spent on Social Security and Medicare alone.
The costs of Social Security/Medicare/Medicaid is expected to grow from 9% of GDP in 2009 to 26% of GDP by 2082. To finance this the CBO estimates that the income tax brackets would have to rise to 25% for low income families, 63% for the middle class, and 88% for upper income individuals, small business, and corporations.
Without change, by 2052, EVERY SINGLE DOLLAR of federal tax revenue will be used to pay for Social Security, Medicare, and Medicaid benefits-we won’t even be able to pay the interest on our debt. http://www.heritage.org/budgetchartbook/entitlements-historical-tax-levels
We spend a lot of time in America blaming politicians in Washington, DC. Typical American response of not assuming personal responsibility. Who sent these idiots there in the first place, and furthermore, who were the people that continued to beg for more entitlements at the public trough? At the end of the day, it’s really our fault, the American people. The people I blame most are those that run around on a daily basis believing that America is fine and nothing will ever happen to us. They look at you with contempt, or go silent and try to change the subject when you try to have a conversation about something other than American Idol, their kid’s soccer game, or the latest moral degenerate to be in the news (i.e. Anthony Weiner, Charlie Sheen, or Kaylee Anthony).
It’s up to us, if we want this nation to continue to be great you have to do your best to continue to educate those that don’t want to be educated. You have to have the courageous conversations with friends and family that frankly don’t want to hear it. Candidly, I think this is worth losing friends and family over if you have to. If you don’t, it’s going to get ugly! Taxing the rich is not going to get you out of this, it’s going to take cuts and the precious little entitlements might have to be modified a little bit. What’s disgusting is no change needs to befall those currently on the system, or about to go on the system in the next decade. This has been perverted by the left and the mainstream media in this country. It’s the younger people that will have to look at modifications. I’m 28, I fully accept this, AND I’M OK WITH IT! You see I’m not so selfish as to want to see my nation destroyed because I don’t want to be responsible enough to plan for old age. News flash folks, you get old, and you have to prepare for it, if you don’t do it, it sucks! And you deserve to have it suck!
Oh, and for those of you that have this naive view that defense should never be touched, get a clue, there’s no sacred cows this time.