Social Security & Medicare
The only reason there is a crisis about Social Security in the US and pensions in Europe and Japan is that you cannot maintain a "Ponzi" scheme indefinitely. We have collected from today's young to pay today's old and counted on tomorrow's young to keep doing so. That was a fine scheme as long as the number of young people was rising faster than old people. When that ratio comes to an end, such a system also has to end.
By Milton Friedman
US Liabilities from the usdebtclock.org
I'd like to promote lots of things. I'd like to promote elimination of drug prohibition. I'd like to promote parental choice in education through vouchers. Those are two things I think are very urgent and important. They're both more important than the harm which Social Security will do.
For Social Security to be financially sound, the federal government should have $100 trillion - a sum of money six-and-a-half times the size of our entire economy - in the bank and earning interest right now. But it doesn't. And while many believe that Social Security represents our greatest entitlement problem, Medicare is six times larger in terms of unfunded obligations.
No government can provide social security. It is not in the nature of government to be able to provide anything. Government itself is not self-supporting. It lives by taxation. Therefore, since it cannot provide for itself but by taking toll of what the people produce, how can it provide social security for the people?
The rate of return on Social Security for people nearing retirement is about 1.5 percent. By the time young children like mine are ready to retire, that rate of return will be a negative percentage.
This debt crisis coming to our country. The wall and tidal wave of debt that is befalling our nation. Medicare and Social Security go bankrupt within ten years, we have a debt that is looming so high that in the last year of President Obama's budget just the interest payments on our debt is $916 billion dollars.
But here's what I would tell people of my generation. I turn 40 this year. There isn't going to be a Social Security. There isn't going to be a Medicare when you retire. Forget about what your benefit is going to look like. There isn't going to be one if we don't make some reforms to save that program now.
Medicare will usher in federal programs that will invade every area of freedom as we have know it in this country.
The reason Social Security is in big trouble is we don't have enough workers to support the retirees. Well, a third of all the young people in America are not in America today because of abortion, because one in three pregnancies end in abortion.
To avoid large and unsustainable budget deficits, the nation will ultimately have to choose among higher taxes, modifications to entitlement programs such as Social Security and Medicare, less spending on everything else from education to defense, or some combination of the above.
No matter what politicians promise, Social Security reform will not change the fact that your money is taken from your paycheck and sent to Washington, where it will be spent.
Social Security is a widely popular program because the individual has been deceived by the Statist to believe that the government has been prudently and diligently managing his accumulated pension investment in his Social Security account, which he presumes to be funded by his own payroll taxes.
Madoff's scam was small compared to Ponzi schemes the government itself runs: Social Security and Medicare.
Do we really want the people who created $40 trillion of unfunded liabilities in Social Security and Medicare in charge of our health care? Faceless bureaucrats, power-lusting politicians, and people spending other people's money are a recipe for disaster.
You know, there was a recent poll which said that young people in the generation of the students here felt it was far more likely that they would see a UFO than that they would draw Social Security... It's very important you understand this. Once you understand this, you realize this is not an episode from the X Files, and you're not more likely to see a UFO if you do certain specific things.
Today more people believe in UFOs than believe that Social Security will take care of their retirement.
Social Security's future has gotten worse, and each year we delay reform adds to the cost we are pushing off onto our children.
Counting obligations under Medicare and Social Security, the real debt of the United States is more than 10 times the reported national debt.
Social Security is a fraudulent scheme in which the government collect money from you for your retirement - and immediately spend the money on something else.
Hillary Clinton has pledged amnesty in her first 100 days, and her plan will provide Obamacare, Social Security, and Medicare for illegal immigrants, breaking the federal budget.
Thanks to decades of accumulated federal budget deficits and, more significantly, imprudent Medicare and Social Security policies, we've stolen almost $60 trillion from our children.
Indeed, I think most Americans now know that in 1935 when Social Security was created, there were some 42 Americans working for every American collecting retirement benefits.
The full retirement age is 67 and the lifespan is 80, so when they first conceived Social Security, they didn't think they were going to be paying benefits for 13-15 years. That's one of the reasons why this pyramid scheme isn't working.