I wrote my first column for the Irish Echo 18 years ago.
It concerned Social Security, and how the program’s reserves would be unable to pay full benefits in 25 years.
That was back in 2008 when the U.S. National Debt was $10 trillion.
In 2000, at the end of the go-go Clinton years, the deficit had been as low as $5 trillion, and Ol’ Bill had even managed to turn a budget surplus.
Those were the days!
Oh well, 9/11 came out of nowhere, the dot.com bubble burst, and we invaded Iraq.
Disasters do happen.
But how did we go from owing $10 trillion in 2008 to over $38 trillion today (that’s roughly $115K per citizen.)
Not to mention, President Trump’s Big Beautiful Give-Away Bill will add an estimated $3.4 trillion in debt over the next ten years; while fresh on the heels of his skite into Venezuela he called for a massive increase in the military budget in 2027.
Where will it all end?
This is not a screed against the 47th president.
For all I know we’ll need those extra military bucks to now blow the hell out of Iran, a mission now underway.
Besides, there’s always the risk we’ll be invaded from outer space.
If only Mr. Trump hadn’t turned the Republican Party from deficit hawks to Mar-a-Lago sparrows, for we all know those Commie Democrats will give away the kitchen sink if it isn’t nailed down.
Whoever’s to blame, in 18 years we’ve overspent to the tune of $28 trillion.
And we’re paying interest on every dime of it.
Just apply that to your own credit card.
We all use them, but many would beg, borrow, or do with less, before paying the outrageous interest demanded.
Now I know that the Obama, Biden and two Trump administrations have encountered major misfortune, including the Great Recession and Covid-19, while each has felt the need to bolster our defense forces, and stimulate the economy.
But where do politicians come off cutting taxes - especially for the rich - as the debt surges?
Although in fairness, some economists believe we’d be in recession right now if the wealthy weren’t patriotically spending like it’s going out of style.
Fair enough, says you, but what’s all this got to do with my social security benefits?
Unfortunately, it means that in the 18 years since my first column, there hasn’t been the political will to bite the bullet and shore up Social Security reserves.
In fact, successive administrations have allowed various cushions like Old Age and Disability cash reserves to run out quicker than expected because of work-force retirements during the pandemic, higher inflation, decrease in fertility and, of late, the expulsion of immigrants and refugees.
To top it all, nothing is likely to happen over the next three years with the King of Debt in power.
Did he even mention “deficit” during the recent State of the Union variety show?
So where does that leave us?
Between a rock and a bloody hard place – because sometime in 2032 the Social Security program’s revenue will only cover around 75% of normal benefits.
Forget about affordability, we have a major crisis slouching down our pike.
It’s too late for excuses.
We’ve got to put pressure on our politicians to face up to a novel reality - paying our way.
There are solutions – none pretty, most dire. It will probably take a mixture of the following: Raise the 12.4% payroll tax.
Raise the cap on wages and self-employment from $184,500 to at least $250,000.
Raise the age at which one can receive benefits.
Consider taxing dividends, unearned income, and capital.
And pray like hell our creditors don’t demand higher interest rates.
I know it’s heresy to mention raising taxes.
But we’ve spent 18 years living way beyond our means.
It’s time for bipartisan support of cuts in spending.
I’m not talking dumb DOGE slashing; how do you collect unpaid taxes if you drastically shrink the IRS budget and workforce?
Speak up, President Trump. You have valuable business experience dealing with debt and bankruptcy; or do you intend kicking the can down the road for budgetary gladiators like Vance, Newsom, and the other 2028 hopefuls?
If we carry on regardless, in six years we’ll be in full crisis with an aging population unable to survive on their social security benefits – or maybe we’ll find gold in Greenland, The Mets might win the World Series, or invaders from space may bail us out.
