Medicare and Social Security Running Out of Money


2017. That is when the Medicare system will run out of money at the current pace. Eight short years from now the federal government will have to begin borrowing money (on top of all the money it is already borrowing) to pay for its obligations under Medicare. The Social Security picture seems practically rosey by comparison with 30 years of solvency remaining. But, don’t be lulled into a false sense of security on that front. Social Security is the single largest government expenditure next to Defense costing roughly $650 billion annually. When it goes insolvent, and it will, the magnitude of that problem will be staggering.

So then, it makes perfect sense that while the government can’t fund the obligations it has, we should add more un-fundable obligations to the books in the form of national health care, right? ‘Cause if any one of us had a mortgage we couldn’t afford to pay what we’d do is run right out and buy a second home with a price tag 10 times the size, right? Let’s have a little common sense people. Anyone with even the slightest ability to reason, should be able to take one look at the chart below and understand that the jig is up, the game’s over, or whatever other cliche’ you prefer.

federal spending

Note that Medicare, Medicaid and Social Security spending alone will exceed TOTAL FEDERAL TAX RECEIPTS in roughly 40 years. Now imagine that we tack on a new program larger than all of those combined (yes I said larger than all of those combined!); where will that put us? It is time for this government, this administration, to put the brakes on its giddy spending spree and first see if they can even figure out how to fund their exisiting obligations before they go saddling the American people with more.

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