The Entitlements
Mirage
When the federal government adopted a "unified budget" in 1968, all the surpluses of the Social Security system were used to cover the general budget deficit; that is, the Social Security savings account was stolen. Today, even with the unified budget, the general budget deficit is growing to more than 40% annually, and the total national debt is surpassing $20 trillion.
Politicians will continue to hide the reality that a
substantial increase in the retirement age and means testing are soon to be the entitlements' new normal. The best future generations can hope for is a "defined contribution" arrangement that allows seniors to first recover their investment in the system before they are subjected to means testing. The mathematical reality is unavoidable.
