Jeff Miron’s Advice: Cut Federal Entitlement Spending!
Thursday May 5th, 2011 • Posted by Emily Skarbek at 7:51am PDT • 12 Comments
In the following video, Independent Institute Research Fellow Jeffery Miron discusses why federal entitlement spending (Medicare, Medicaid, and Social Security) is growing to unprecedented levels and must be cut and cut and cut some more if the U.S.’s fiscal spending and debt crisis is to be resolved.
HT: Mike Munger
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Charles Perry says:
If you think my Social Security, and Medicare are entitlements and need to be cut, than I want all the money I paid in to Social Security and Medicare back...I paid it. WHY can’t I receive it?...
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Julia says:
The folks on Medicare and SS who have worked all of their lives to pay into the system—deserve to get their monies–they earned it.
The entitlements that need to be cut are the folks who don’t work, haven’t worked and don’t intend to work–because they get free housing, free food, free medical care (which includes all of their children), free HVAC–cell phones—I mean gosh we pay for everything except their nails and their hair—but yet–they are not
required to be drug tested for all of those freebies.The Section 8 folks can get vouchers for $1795.00 per month, not work, yet drive Escalades and have the biggest TV screens that I have ever seen.
It the dangest thing that I have ever seen–I work every day–have for 40 some years and I can hardly afford to pay my 1200 mortgage (which I can not qualify to modify my home loan–because I refuse to “get behind”. I drive a Honda Accord–which I paid for and no one gives me free food–oh yeah–I don’t qualify for that either on my whopping 27,000 per year salary. I could work two jobs–but why would I want to and why should I—-it just means that the Gov gets more money that I WORKED for to give to some lazy butt–that has never worked–because “The System” takes care of their needs. I am just about done with busting my butt, so that others can sit on theirs. They can work, too—there are plenty of animal shelters that need Volunteers, FD and Rescue Squads, folks to read book to children, trash that needs to be picked up along highways—-you get the message.
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Jo Ann says:
Try starting at the top because they have started at the bottom for too long!!!!
Try cutting all government raises!!
Try cutting there salaries!! Try cutting any bonuses they get!!
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Charles, Your point is an excellent one, but the answer is the same as for any taxes that you have paid. Social Security payments are payroll taxes that are used for any area of federal expenditures. However you do indeed have a right to have this money returned, but the sources for this are not other taxpayers but instead are the following:
1. Government employees who have operated these programs and received your tax funds. Their assets should be used to pay you back.
2. Government assets such as lands, buildings, vehicles, mineral rights, waterways, etc., that could be liquidated and used to pay you and others back.
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Julia, The point here is that despite what politicians and federal officials have claimed, Social Security and Medicare are not insurance programs—they are welfare programs based on a Ponzi scheme in which people are taxed to fund current government spending in the delusion that there will be funding to cover the costs for those currently paying in when they retire or seek assistance. However, such a transfer-payments system is not sustainable as the population ages and the number of people paying into it shrinks to support ever greater numbers who receive payments now. This is the point of Professor Miron’s video.
The solution is to liquidate government assets to pay people back who have been defrauded by this scheme, raise the age for those not in it to become eligible, and give people the choice to opt out for private retirement and other insurance arrangements that are viable.
Here is the Government Cost Calculator’s proposal to reduce federal spending, including entitlements.
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Chris, These entitlement programs were not sustainable under Clinton, only now this situation is far, far worse because no one took action then to stop the spending. The real issue here is for the elderly (and everyone) to not be forced to be victims of the federal Ponzi schemes of Medicare, Medicaid, and Social Security.
How can this be done? Here is the Government Cost Calculator’s proposal to reduce federal spending, including entitlements.
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The answer to this and most questions of the day are right in front of our faces. Its the Constitution. The sooner we get re educated to the Constitution the better off we will be. The federal government has NO constitutional authority to provide entitlements. Congress was granted by the constitution 20 specific powers. Not 2,000 not even 200. Just 20. Its time Americans grow up. Look to our founding fathers for their wisdom. They were right then and they are right now. Future generations are going to pay the price of our 100 or so past years of stupidity.
“If ye love wealth better than liberty, the tranquility of servitude than the animated contest of freedom — go home from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains sit lightly upon you, and may posterity forget that you were our countrymen!”—Samuel Adams
“Government is not reason; it is not eloquent; it is force. Like fire, it is a dangerous servant and a fearful master.”
—George Washington“We must not let our rulers load us with perpetual debt.”—Thomas Jefferson (July 12, 1816)
“But with respect to future debt; would it not be wise and just for that nation to declare in the constitution they are forming that neither the legislature, nor the nation itself can validly contract more debt, than they may pay within their own age, or within the term of 19 years.”—Thomas Jefferson (September 6, 1789)
http://hughcpeconjrs.blogspot.com/2011/04/its-constitution-stupid.html -
Don Levit says:
David has done his homework.
There is a huge disconnect between what Americans believe they are entitled to, and what the government believes they are entitled to.
Taxes are for the general welfare, and one cannot say that those taxes I paid in are specifically for me.
The FASAB, who is the accounting advisor for the federal government, considers your FICA taxes as non exchange transactions,
That means you are compelled to pay in, but the government is not compelled to pay you back. In fact, if they do, they are actually doing you a favor!
On a level of government commitments, from strongest to weakest, future Social Security and Medicare benefits are level 4, the weakest commitments to fulfill.
I can provide reputable governmental links to support my statements, if interested. -
Allen says:
Get real! The military budget dwarfs the SS, Medicare and Medicaid spending on US citizens! Cut the ridiculously huge military budget, and buy offs of other countries like Pakistan at over 2 billion dollars a year! We have more bases around the world than any other country and we citizens are paying dearly for the super wealthy to gain and keep control at our expense. Enough already! America is being sucked dry!
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Allen, You are indeed correct that “defense” spending is gigantic and includes the funding of hundreds of military bases worldwide. Defense spending consists of about 1/4 of total federal spending and Social Security, Medicare and Medicaid spending totals about 50% of federal spending. The reality of this is that none of this is sustainable, especially as we look at the demographic trends.
In this regard, here is our proposed budget that would cut spending by 2/3 and produce a $1.3 trillion surplus.
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Bill Rushing says:
One thing the good doctor is not considering: Medicare, Medicaid and Social Security are not entitlements. I paid for them ... NObama 2012 ...
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No. The Baby boomers got to have their cake and eat it, too. CBO projects that taking Medicare to a voucher system will have seniors paying 68% of their medical bills out of pocket within a few years. Talk about a ‘death panel.’
Let’s let the tax cut for those making over $250,000 per year expire and move back up to Clinton levels (39%). Under Clinton, we had a great economy, strong entrepreneurial drive, a budget surplus... and we weren’t telling the elderly to go to Hell.