The United States is experiencing the highest rates of inflation in 40 years. But unless the U.S. tackles Social Security and Medicare entitlements, the U.S. could face an economic doom loop of out-of-control deficits, ever higher interest rates needed to attract foreign capital, and slower economic growth.
Let’s be clear, in 2022, Social Security and Medicare are Ponzi schemes. They are not self-funding. The two pillars of government entitlements are not subject to the annual appropriations process, instead operating on autopilot. The programs rely on younger workers paying Federal Insurance Contributions Act employment taxes, which in turn are paid out to the rapidly growing population of retired workers. But demographics are destiny. Because Congress will not compromise and enact comprehensive immigration reform legislation, the working population is not large enough to sustain the benefits being paid out to beneficiaries of Social Security and Medicare. The two programs are going bankrupt.
