Social Security is already on its last legs, but the federal government's latest irresponsible spending binge has accelerated its descent to insolvency.
The latest report from the program's trustees moved its insolvency date from 2035 to 2034, and it placed the blame squarely on COVID-19 spending.
"The finances of both programs have been significantly affected by the pandemic and the recession of 2020," the trustees said, referring to both Social Security and Medicare.
When the Social Security trust fund is depleted, the government will only be able to pay 78% of scheduled benefits, the report said.
Medicare's death date was not changed, but that program is set to run out of money even sooner in 2026.
Those are the official "insolvency" dates, but here's the truth: both programs have run out of money. The idea that your Social Security and Medicare taxes are preserved in a bank vault somewhere is a fiction. They're immediately spent by the federal government to pay current benefits and to buy everything else the federal government spends money on.
For many Americans, these programs form the bedrock of their financial existence. They've paid their taxes faithfully, and they expect to receive what they're owed.
Unfortunately, due to the irresponsible spending of our "leaders" in Washington, these and future generations of Americans risk losing everything they've paid into these programs. When Social Security and Medicare become insolvent, Congress is unlikely to cut spending in other areas to make up the difference. Instead, they'll just borrow even more money from future generations until they spend our country into the ground.
There is still hope. Congress may be unwilling to make the tough spending cuts to keep these programs alive and our country financially stable, but the people and the states can force their hand.
An Article V Convention of States is called and controlled by the states and has the power to propose constitutional amendments. These amendments can limit federal power, impose term limits on federal officials, and mandate fiscal responsibility.
These amendments can include a balanced budget amendment, tax caps, and spending limits. Such amendments would force Congress to cut all the unnecessary and wasteful spending, and put our country on a strong fiscal footing.
The American economy is the greatest in the world. We produce more wealth than any other country on the planet. There's no reason we should be struggling to pay for Social Security and Medicare, but the federal government has been unable to use our money wisely.
We can't afford to wait. We must call a Convention of States now before it's too late. Sign the petition below to join the movement!
