End Social Security, Medicare, and the Welfare-Warfare State!




Date: 11/08/2010

Reject the Welfare/Warfare State

by Ron Paul

Last week’s midterm elections have been characterized as a victory for grassroots Americans who are fed up with Washington and the political status quo. In particular, the elections are being touted as a clear indicator that voters demand reductions in federal spending, deficits, and debt.

If the new Congress hopes to live up to the expectations of Tea Party voters, however, it faces some daunting choices. For all the talk about pork and waste, the truth is that Congress cannot fix the budget and get our national debt under control by trimming fat and eliminating earmarks for “Bridges to Nowhere.”

Real reductions in federal spending can be achieved only by getting to the meat of the federal budget, meaning expenditures in all areas. The annual budget soon will be $5 trillion unless Congress takes serious steps to reduce spending for entitlements, military, and debt service. Yet how many Tea Party candidates who campaigned on a platform of spending cuts talked about Social Security, Medicare, foreign wars, or bond debt?

With regard to entitlements, the 2010 Social Security and Medicare Trustees report tells it all. It paints a stark picture of two entitlement programs that cannot be sustained under even the rosiest scenarios of economic growth. No one, regardless of political stripe, can deny the fundamental problem of unfunded future liabilities in both programs.

We should understand that Social Security was intended primarily to prevent old widows from becoming destitute. Life expectancy in 1935 was only about 65, when there were several workers for each Social Security recipient. The program was never intended to be a general transfer payment from young workers to older retirees, regardless of those retirees’ financial need. Yet today Social Security faces an unfunded liability of approximately $18 trillion.

First, Congress needs to stop using payroll taxes for purposes not related to Social Security, which was a trick the Clinton administration used to claim balanced budgets. Second, Congress should eliminate unconstitutional spending – including unnecessary overseas commitments – and use the saved funds to help transition to a Social Security system that is completely voluntary. At some point in the near future Congress must allow taxpayers to opt out of federal payroll taxes in exchange for never receiving Social Security benefits.

Medicare similarly faces a shortfall of $30.8 trillion in unfunded future benefits. The Part D prescription drug benefit accounts for approximately $15.5 trillion, or half of the unfunded Medicare liability. Congress should immediately repeal the disastrous drug benefit passed in 2003 by President Bush and a Republican Congress.

Fiscal conservatives should not be afraid to attack entitlements philosophically. We should reject the phony narrative that entitlement programs are inherently noble or required by “progressive” western values. Why exactly should Americans be required, by force of taxation, to fund retirement or medical care for senior citizens, especially senior citizens who are comfortable financially? And if taxpayers provide retirement and health care benefits to some older Americans who are less well off, can’t we just call it welfare instead of maintaining the charade about “insurance” and “trust funds”?

Military spending and interest on the national debt similarly represent large federal expenditures that Congress must address by rethinking our foreign policy and exercising far greater oversight over the Federal Reserve and the Treasury department.

I have for a long time criticized our interventionist foreign policy and the Fed, and I will continue to do so. It’s time for Congress to face the fundamental problems that affect Social Security and Medicare, and show the courage necessary to make real changes to both programs by rejecting the welfare/warfare state.

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98 Comments:

  1. Social Security is far too big to fail. That money is one, their own money they put into it over their lie time, they get 3 times more back, because of the time value of money. It is worth 3-4 times less then what they put in 40 years ago, so fuck off.

    Also that money goes to pay bills, rent, food, doctors, medicine. The ripple effect on the economy would kill the western world you fuckign dip shits.

    Think, and never listen to evil kosher people.

    I love Ron P, he is wrong here.

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  2. Social Security is far too big to fail. That money is one, their own money they put into it over their lie time, they get 3 times more back, because of the time value of money. It is worth 3-4 times less then what they put in 40 years ago, so fuck off.

    Also that money goes to pay bills, rent, food, doctors, medicine. The ripple effect on the economy would kill the western world you fuckign dip shits.

    Think, and never listen to evil kosher people.

    I love Ron P, he is wrong here.

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  3. Social programs breed laziness and incompetence, even worse they lead individuals into thinking that the only way to fix any problem is to have someone else do it for you. Its not my fault some people have 5 kids and no income, why should I help them out? its not my fault that person x never saved enough to retire on or pay for medical care, or never had an original thought in their heads and turned that idea into a profit stream.

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  4. GOP wants to insure those that have earned there own money keep there own money.. Those that have been on entitlements all there life should they get the same or more than i do in SSI? well?

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  5. GOP wants to insure those that have earned there own money keep there own money.. Those that have been on entitlements all there life should they get the same or more than i do in SSI? well?

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  6. Not everyone wants to pay into SSI as he said that social security stared off taking care of little old ladies who had a couple years of life left before they died. Bottom line our life expectancy is around 78 years old and you draw out every dime you put into SSI way before then. Are we going to strap our children and our grandchildren with the responsibility to take care of us? And no SSI was never meant to take care of crippled kids or old people that never lived in the country before...

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  7. Not everyone wants to pay into SSI as he said that social security stared off taking care of little old ladies who had a couple years of life left before they died. Bottom line our life expectancy is around 78 years old and you draw out every dime you put into SSI way before then. Are we going to strap our children and our grandchildren with the responsibility to take care of us? And no SSI was never meant to take care of crippled kids or old people that never lived in the country before...

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  8. How are you talking to? Are you kidding? Are you a Neo-Nazi? So you would rather our elders die and the disabled as well. You are a truly mean person.

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  9. No RonPaul,

    He is not for The american values or THE CONSITUTION which he said he is for.
    Gun control, against the consitution
    Open the boarders
    Being all US troops home from countries which are our allieds, leves us open to terror attacks
    Defund the Military
    New Monatary system
    End SS, Medicare and assistance to those who really need it
    Make all illegals citizens of the USA

    Please read up on Paul's platform
    It's NOT for the consitution or the American people. This man is dangerous

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  10. Honestly; we should just get rid of all taxes. Now back to reality, I would rather pay a tax that helps my fellow human than to pay for some $1,000 toilet in the white house or some other ridiculous thing. How you can just pick and choose; we have taxes so what? I am poor and I realize. Are we overtaxed? Yes but we need some form of taxiation to keep our current lifestyle in tact!

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  11. Social Security is a not a Ponzi scheme. People live off of this I am not talking about people who are healthy or young these are disabled and seniors who can only work part time at best. This is not about politics but making sure our weak and elders are taking care of. Do you not have respect for your elders? They have put in their time. FDRs New Deal was the best thing to come out of the Great Depression!

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  12. Social Security is a not a Ponzi scheme. People live off of this I am not talking about people who are healthy or young these are disabled and seniors who can only work part time at best. This is not about politics but making sure our weak and elders are taking care of. Do you not have respect for your elders? They have put in their time. FDRs New Deal was the best thing to come out of the Great Depression!

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  13. So by cutting SS benefits for those of us who paid into the system for 25 years or more should just piss all of that away and never get a return? You're an idiot...there are people who can barely make it on SS benefits as it is and you want to cut them? It's politicians like you that make me ill and esp. you rotten ones who started raiding the benefits back when Carter allowed the fund to be borrowed against and used as collaterol...and everybody was pissed for what Enron did? What's the difference....both raid and rob a fun that was meant for those who paid into it not to use as a safety valve to fund Gov't spending. Congress is still using it to fund their BS programs but who is going to cut their benefits...certainly not them cuz they have retirement for life after serving one term...ONE TERM! Who gets that and then have it guaranteed for life?

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    • Read and understand the whole article. Understand what he's trying to do to not only make sure that the people the TRULY need help get it and the ones that don't are not wasting our tax dollars. These programs need a complete overhaul and reorganization. Fixing the messes our government has made and that we allowed to happen is gonna take time, hard work and sacrifice. If you're not ready for TRUE reform now, you will be when our economy collapses and we become a 2nd or 3rd world country. This is history repeating itself people. We are heading down the same path the U.S.S.R. did and Ron Paul is the only man with the principles and determination to prevent it.

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  14. You shouldn't cut the social programs, it's not the people who receive the benefits that take the lion's share, it's those who administer them that does.
    We do need better transition programs for people who are poor, disabled, & retired to transition into the work force in but not limited to full time.
    We need jobs,not cuts, not to be docked if you're in one of these social programs trying to rejoin the workforce, bring back the training & education programs to wean people from these programs without starving.

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    • Hypatia Alexandria

      SS:

      The best way to improve social programs is to get government out of the business of administering and funding them -- to abolish the government programs altogether -- thereby allowing private social programs to flourish.

      Government programs, by virtue of their use of the naked force of coercion to perpetuate their morally corrupt and economically unsound practices, are immune form the natural regulatory forces of the free market.

      Government's role should be limited to preventing private programs from using coercion. without the use of coercion, they will be unable to escape the powerful regulatory forces of the marketplace .

      Only the free market can be trusted to regulate social programs, keeping them efficient and honest. The government cannot be trusted to regulate them
      (other than to prevent them from using coercion) because the government cannot be trusted to regulate itself.

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    • Hypatia Alexandria

      SS:

      The best way to improve social programs is to get government out of the business of administering and funding them — to abolish the government programs altogether — thereby allowing private social programs to flourish.

      Government programs, by virtue of their use of the naked force of coercion to perpetuate their morally corrupt and economically unsound practices, are immune form the natural regulatory forces of the free market.

      Government’s role should be limited to preventing private programs from using coercion. Without the use of coercion, they will be unable to escape the powerful regulatory forces of the marketplace .

      Only the free market can be trusted to regulate social programs, keeping them efficient and honest. The government cannot be trusted to regulate them
      (other than to prevent them from using coercion) because the government cannot be trusted to regulate itself.

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  15. You shouldn't cut the social programs, it's not the people who receive the benefits that take the lion's share it's those who administer them that does.
    We do need better transition programs for people who are poor, disabled, & retired to transition into the work force in but not limited to full time.
    We need jobs,not cuts, not to be docked if you're in one of these social programs trying to rejoin the workforce, bring back the training & education programs to wean people from these programs without starving.

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  16. Hypatia Alexandria

    Which members of Congress have the integrity to tell those of us who have been subjected to payroll taxes all our lives that the money is gone, that it was not securely invested so that it would be available for us to collect as pensions or medical insurance benefits in our retirement years, that it was stolen by the US Congress to pay for government programs.

    Which members of Congress have the integrity to us tell that, had the money not been collected by the government as payroll taxes, had we invested it instead in private funds, expecting to collect it in our retirement years, and had the private fund managers fraudulently squandered our money elsewhere and had no honest means of ever recovering the money they lost, then neither they nor we would have have any moral right whatsoever to steal from our grandchildren in order to cover our living and medical expenses. To survive, we would simply have to come out of retirement and get jobs -- the best jobs we could handle given our physical condition, or rely on charity -- private, voluntary charity.

    Which members of Congress have the integrity to us tell that being victims of Uncle Sam's ponzi scheme doesn't entitle us to steal from our grandchildren?

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  17. Social Security should be terminated because the federal government has no authority to tax citizens for a "retirement" program. However, immediate termination is not politically possible. Grandfathering present and near-present recipients and tax credits for other participants might be politically possible although presently expensive. For example:

    1. Terminate SSA
    2. Continue to pay present recipients as provided by current law
    3. Give those 55 (or so other arbitrary age) or older the option to continue to pay taxes and get benefits or receive tax credits for what they have paid in
    4. Those 54 or younger receive tax credits for money they paid into the SSA

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  18. it really will be on grand kids if they have to take care of parents with no SSI or Medicare paying for housing food and healthcare for them it really will cost our kids when other countries take over this one because our kids haven't had proper education to keep up with teq, space, air, weapons, money, medical and so on. our grand kids will suffer for sure but not with money in the way republicans like to think.

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  19. This coming from a man who does not need social security benefits.This program is paid for this is a retirement program for all even the rich. Bush and Reagan each removed $350 million out of social security for their debt. So the answer is through every body under the bus. We are moving to a dictator ship and a third world country.

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  20. I agree with a lot but...

    Hi Ron Paul, I agree with you on so many issues...end the warfare state, end the free prescriptions, let people buy their meds from Canada and other low-cost providers...But please do not end Social Security for the elderly.

    First, you cannot get elected if you try to end social security. Secondly, my parents live on it.

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