The National Debt Crisis. Hard Rain Ahead.
Just five years from now, the U.S. will pay more to service its national debt than it spends on national defense, according to Congressional Budget Office projections. In the words of Ben Shapiro, editor-in-chief of The Daily Wire, “there will be fiscal hell to pay” when the time comes to deal with this rapidly growing problem. In an article posted on www.dailywire.com, Shapiro outlines the conflicting political positions driving the issue, noting that “The American public is simply unready to talk about doing what we must in order to ensure America’s continued economic growth and strength, particularly at a time when our population is rapidly aging.”
Part of Shapiro’s analysis addresses the “entitlement issue,” contrasting Republican emphasis on restructuring spending programs with Democrats’ preference for expansion of social welfare programs. In the meantime, governmental spokespeople on occasion lay some of the blame for the national debt at the Social Security doorstep–a belief that is incorrect. Using the unfortunate term “entitlement” to classify Social Security’s role in deficit spending paints an inaccurate picture of the program, since Social Security is actually self-funded and by law prevented from contributing to the federal government’s deficit. All of that is not to say that Social Security is problem-free, since the program’s looming insolvency is well-documented. There are varying thoughts on how to deal with this problem, although each year the projected depletion of Social Security’s accumulated reserves gets closer.
As many are aware, the Association of Mature American Citizens (AMAC) has been actively engaged in the battle to craft legislation for a long-term solution to Social Security’s solvency issue. Dating back several years, AMAC has been advocating a legislative framework that would guarantee solvency for generations to come, with relatively minor adjustments and additional program provisions to assist future retirees in preparing for the financial realities of retirement. Most recently, AMAC put forth an updated version of this framework, “The Social Security Guarantee Act,” a plan that combines the Association’s original platform with selected assumptions taken from legislation introduced by Representative Sam Johnson (R) of Texas and Representative John Larson (D) of Connecticut to achieve what is the best path to long-term Trust Fund solvency without raising taxes. Learn more about the this proposed solution by vising AMAC’s website.