Social Security and Medicare are in trouble. The Trustees of Social Security annual report showed some scary numbers. Social Security is expected to be depleted in 2034. Medicare's giant trust fund for inpatient care won't be able to cover projected medical bills starting in 2026, three years earlier than previously expected.
Brian Riedl says these predictions "understate the problem." Brian is a senior fellow at the Manhattan Institute and a member of MI's Econmics21, focusing on budget, tax, and economic policy. He joins Fox News Radio's Guy Benson and Marie Harf to break down the numbers.
On what we heard from trustees in this report: The typical retiree, retiring today at age 66, will still be alive when these programs go bankrupt. So, this is coming now. Social security is already in deficit right now. Over the next 30 years Social Security and Medicare are 82 trillion dollars in the red. (3:38)
On the proposed solutions of economy growth and taxing the rich: Economic growth is necessary. It's not sufficient. Part of the problem is these programs are going 7-8% a year. You're not gonna have the economy grow 7 to 8 percent to keep at pace with this. You would actually need a tax rate of 190% on the rich in order to cover Medicare. (5:40)
On how to get will to do something about these issues: You couldn't even talk about this issue even among Republicans. The consensus is that it's political suicide. (8:26)
On the trade war: The Trump budget and agenda depends on a fast growing economy. The consensus among economists is that tariffs hurt growth. All they are is a tax increase on American consumers. (12:09)