The federal government is spending roughly $1.5 trillion a year on Social Security and Medicare/Medicaid alone. That doesn't even include foodstamps and other welfare programs, pensions, etc. How much is this doing for our economy, as we sink deeper into debt? I propose we cease all spending on such things for one year. The only exception being for those are disabled. During that same time, payroll taxes be reduced by 50% for everyone.
With the money saved, every tax payer and person who receives benefits gets a check for $7500. Use it as you see fit. Use it for food, use it for health care, use it for rent, use it to start your own business. This approach will offer substantial aid for people in need, will be a lesser total expenditure, and will actually yield a lesser deficit. Meanwhile, individuals will be able to have more disposable income with which to stimulate the economy.
Why shouldn't we do this?
The money for SS is not federal government money. It is money that was paid by the workforce of America to fund their pensions. And SS is not driving the deficit. It may come as some surprise to you, but the federal government OWES money to SS.
That's right. Social security is not part of the general fund. All that money people and their employers paid in is supposed to be kept in a special account and government wasn't supposed to tax it, take from it or give to people who didn't pay in. It was originally supposed to be optional for people to participate, but of course the government made it mandatory and then they increased the amount people had to pay in.
Government was allowed to borrow from the surplus if they paid it back with interest.
Now it's a mess because government couldn't keep their grubby paws off it and it was given to people who didn't qualify under the original rules. Many qualified people died before they collected and the account should be pretty healthy. It's not. Government owed over a trillion dollars as of a few years ago and I bet that's higher now.
Obama was a total shit when he scared the elderly during the debt ceiling debate by telling them they might not get their checks. That was low, really low.
Suspending things that people actually earned over many years is wrong. It was wrong in the first place to promise people that they will receive other people's money, but that was a done deal once it passed. Same with public unions. Politicians play fast and loose with money that hasn't even been earned yet.
Welfare is also a huge expense. We could start with illegal aliens. If we would have stopped welfare for them and not allowed people here illegally to have citizenship granted to their children born here, they wouldn't be here and we wouldn't be spending billions each year to take care of them. The cost of deportation is a fraction of what we spend on their education, living and health care.
If we are going to cut something, it should be welfare. We should do this by putting back the work requirement. Of course, getting rid of Obamacare would go far in helping people find work.
This system overload is by design. We will crumble because we are on an unsustainable path. The left will accuse anyone of wanting cuts of being mean, but if we stay this course, we will all fail and all end up at the bottom with nothing. What do you do when the lifeboat isn't big enough to hold everyone? Let everyone sink or stop letting people on? Damn tough choice, but one that has to be made. Having people take care of themselves is the answer so that others don't have to sacrifice to the point of ruin. We passed that road a long time ago and turning back won't be easy and it will mean even more hardships. If we don't turn back, we are all doomed. You really do run out of other people's money at some point and we should take action before we reach that point. The left would rather do what they think is the humane thing and keep robbing one half to give to the other half. We know how that will end because we've seen it in other countries time and time again. Time for a new approach that doesn't involve socialism.