On the program the other day, I interviewed Senior Policy Analyst Pam Villarreal who is with the National Center for Policy Analysis.  We discussed the huge problem with Social Security and Medicare.  OK, make sure that you are sitting down when you consider this number.  

 

In her report, there is an unfunded liability of 107 trillion dollars.  If the Government had to pay out all of their liabilities that they owe just for those two programs, they would need 107 trillion dollars in the bank. It is not even imaginable.   

 

Currently, they take in money from payroll taxes and then pay it back out.  It is referred to “pay as you go.”  Social Security will work on that basis until 2016.  At that point, there will not be enough money coming into the Government to pay the Social Security tab.  Oh, and those trust funds are merely a myth.  Those were tapped a long time ago.

 

Actually Social Security is not even the current problem.  Medicare Part A is already underfunded. The Government has to go into the general fund just to pay for this.  There is not enough money coming in from payroll taxes to fund that program.  

 

So what is the solution?  Besides getting rid of all of the politicians (sorry just dreaming out loud), President Obama will be forced to go back on his promise not to raise taxes on the middle class.  Payroll taxes will have to go up.  Benefit periods will need to start later.  It is a combination of things.

 

Is it already too late to fix the problem?  Well Social Security and Medicare reform are not even on the agenda.  If the problem is not addressed soon, it will be a nightmare down the road.  There simply will be more people on benefit than people paying into the system.  

 

The Government is trying to figure out how to socialize the country and make sure that they pick up the tab for everything from health care to energy to running corporations of all types.  We have an unfunded 107 trillion dollar liability and the Obama Administration is coming up with program after program that will put us into more and more debt.  

 

The sad part is that we are so far past any solution now, when we are looking at trillions of underfunded liabilities.  

 

Consider this and put this in perspective:  I copied this information from an e-mail.

 

1 million seconds = 12 days, so a million seconds ago would be June 12, 2009

1 billion seconds = 32 years ago, wow, way back in 1977

1 trillion seconds = 32,000 years, approximately 30,000 years BC,
before Christ!  

 

Now multiply that by anywhere from 20 to 60!  Yes, Houston, we have a problem.

 

 

 

Tags: Bob Brooks, Deceptive Money, Government, liabilities, Medicare, Medicare Part A, Pam Villarreal, payroll taxes, President Obama, Prudent Money, Social Security, Tax Rate