There is this mindset among liberals, "moderates," some conservatives and a majority in the mainstream press that believe that the welfare state is a national blessing and that it works and helps citizens meet their needs. They also believe that it is noble and that it can be sustained. With a report that was recently released by the government pertaining toward Social Security, Medicare and Medicaid showing that it will face financial difficulties sooner than expected, and with the nation's deficit projected to become $10 trillion soon, it is very clear that this belief is an illusion. However, these individuals are not deterred. They will continue to peddle this fantasy to the detriment of the nation and to the detriment of its citizens. Though I am an optimist, one must wonder when these individuals will hit bottom and face reality. The moment of truth may be coming soon.
Excerpted from The Tax Foundation:
The trustees of Social Security and Medicare put out their annual report this week on the financial status of the two government programs. Medicare will be in the red this year, paying out more in benefits than it receives in tax revenue. (All Americans pay a 2.9% Medicare tax on their wages, half remitted by the employer and the other half withheld from the employee’s paycheck.) Social Security is still in the black but is expected to enter the red in 2016. (Americans pay a 12.4% Social Security tax on their wages up to an inflation-adjusted cap each year, again half remitted by employer and half withheld from paychecks.)