For the longest time, Democrats have stood up for social security, Medicare, and other socialist measures. However, a recent government report indicated these programs are bound to fail in the long run, due to the lack of money needed for their funding.
Social Security, Medicare No Longer Feasible for Government
Democrats kept on extending social spending measures, despite knowing the country would not be able to fund it for too long.
The annual report of the Social Security and Medicare Boards of Trustees stated more people are retiring. This is straining the social security system of the country to an extent that it could fall as soon as 2035.
According to the report, both social security and Medicare face “long-term financing shortfalls,” which will only intensify with the passage of time.
Reportedly, the cost of these programs will start rising significantly in the 2030s, due to the rapidly aging population of the country.
As President Joe Biden emphasizes the positives, new reports from the trustees of the Social Security and Medicare trust funds show that the programs are on their way to financial insolvency without action to reform them.https://t.co/l5EEli4OsN
— Newsmax (@newsmax) June 6, 2022
Not only this, but if Medicare remains, its cost will outpace the growth of GDP in the 2070s, due to the inclusion of more socialist facilities in the program.
Thus, the feasibility of these programs is in jeopardy, but Democrats are still backing them for momentary political gains.
Likewise, the Old-Age and Survivors Insurance (OASI) Trust Fund will only be able to pay for retirement and survivors’ benefits, until 2034, in a timely manner.
After that, its funds will start depleting; the governments will need to cut the benefits or increase the funding further for timely deliverance of the services.
Congress Ignoring an Elephant in the Room
The failure of Congress to address the issue is making matters worse. As the baby boomers generation is retiring en masse, Congress can no longer fund the programs in their existing budgeting structure.
This is due to the fact baby boomers contributed to these programs in big numbers; retirement means all of them will start consuming the benefits of the programs, instead of funding them.
According to the alarming report, the taxes on Americans would have to be increased if governments want to let these socialist measures survive.
Should any Democratic government come after 2035, they are likely to tax Americans heavily, instead of simply defunding the programs.
This is not the first time the government has been informed about the infeasibility of these programs in the long run.
Last year, a report insisted payroll taxes collected by the government significantly decreased, due to the rising unemployment in the country amid the coronavirus pandemic.
The new Social Security Trustees Report shows not much has changed – still underfunded, still facing insolvency, after 30 years of Congressional inaction.
But what has changed? /1https://t.co/a7rcXg4zbr
— Andrew G. Biggs (@biggsag) June 7, 2022
A poll even indicated Americans have started worrying about the possible depletion of social security services.
So, almost 38% of Americans did not retire, even though they were qualified for social security; they wanted to amass their savings to reduce their reliance on socialist spending.