"Fareed Zakaria GPS," Sundays at 10 a.m. and 1 p.m. ET.
By Fareed Zakaria
In 1900, 1 in 25 Americans was over the age of 65. In 2030, just 18 years from now, 1 in 5 Americans will be over 65. We will be a nation that looks like Florida-I don't mean the strip malls, I mean demographically. Because we have a large array of programs that provide guaranteed benefits to the elderly, this has huge budgetary implications. In 1960 there were about five working Americans for every retiree. By 2025, there will be just over two workers per retiree. In 1975 Social Security, Medicare and Medicaid made up 25 percent of federal spending. Today they add up to a whopping 40 percent. Within a decade, they will be over 50 percent.
Now, we've gotten away with these huge new costs so far by borrowing heavily, for decades. But debt is now 100 percent of GDP and surely that can't keep going up for ever. The Peter G. Peterson Foundation calculates - using Congressional Budget Office numbers - that by 2040 we are likely to spend 10 percent of GDP on interest payments alone (we pay about 1.4 percent today). That is four times what we spend on education, infrastructure and scientific research put together. Now, since entitlements-social security, Medicare and defense spending have powerful interest-group support, what's going to happen is, everything else, all other federal spending will wither. So the left has to ask itself why is it tethered to a philosophy that insists that government's overwhelming responsibility is for pensions and health care even when, as an inevitable consequence, this will starve the other vital functions of the state. Is insurance for the elderly the only important function of government?
Above education? Above scientific innovation? Above investments in infrastructure and energy? Above poverty alleviation? And yet that is the direction we are headed.
Watch the video for the full take.
Fareed has always been the one that made the most sense with no agenda to his opinions. He presents facts and the bigger picture.
Who are you... his mother from Bombay?
Welfare to people who struggle with putting food on the table is bad but welfare to companies and banks is ok? We subsidize different parts of our economy and provide many financial benefits to companies that are making millions and billions a year. Yet we don't want to give a couple thousand dolalrs to people who are struggling?
My parents lived on their Social Security and some money in the bank. That was it. And by the way, I am not going to apologize for being a boomer. Wait until some of you get there, and YOUR CHILDREN are going after you.
We should, within reason, be getting back out what we put in. Some of us have been putting away dollars into the social security system and medicare for most of our lives, and others have put in hardly anything. A distinction needs to be made regarding this. Also . . . if you have been contributing to these programs that are meant to provide for you in your retirement days, then what the demographics say should be meaningless . . . . however . . . . these government programs are nothing more than a huge rip off, because if they still had all the money that was put into the system, there would be no problem, and no reason to fret about the future. . . .
Censorship of non-profane and non-"PC" comments is alive and well on CNN blogs. Nice job 'dominating' the news!
SS will need to lower the benefits paid out so everyone can still get benefits. And doctors will need to be more honest that expensive surgeries are not going to extend life much. Nobody lives forever and a few more months in a hospital are not going to change things for the better. And benefits for rich people need to be taxed. The government was too overly generous, failed to account for longer life expectancies, and ran up too big of debt. Defense spending should be cut first. Not every program should get funded. Most of the contractors and two thirds of the generals should get axed.
Actually there is a young rapidly expanding demographic in the US. However this minority, soon to be a majority, doesn't work. I think they have 50% unemployment. Thus I guess this group isn't even considered in the article as possible contributors in terms of taxes to the system. Everybody knows they just use welfare, even when age 22. Also they don't believe in education.
Raise all taxes to 99% and lower the retirement age to 27.
Social security is paid for by almost all who paid into it. It should in some reasonable way be related to the total steady income of the person retiring and not just calculated on how much he made or how much he paid into the system. The retirement age should be reviewed too. The govt. should be forced to stop dipping into it by the Feds.
Medicare is hightly inefficient and wasteful. But nobody talks about policing it to make it less wasteful. We can't have unlimited access to doctors, medicines, specialists etc. It is said by knowledgeable folks in the medical business that during the last year of the life of most individual, the largest amount of money is spent to keep him alive, when the doctors know that the time for the person to meet his maker has come. Is this right?
Just for the record I am a retiree myseolf.
Why the worry? Obama can just keep money to pay for everything. As Obama said teachers deserve twice what they are being paid. Plus retiring police and firemen after 30 years with full pay is only right. Perhaps Obama should grant some of the money printing rights to local jurisdictions too. After all NYC is now paying more in police and fire pensions than they pay for the police themselves. So a printing press would come in quite handy.
Thank you for some other great article. Where else could anybody get that type of information in such an ideal way of writing? I have a presentation subsequent week, and I'm at the search for such info.
The Global Public Square is where you can make sense of the world every day with insights and explanations from CNN's Fareed Zakaria, leading journalists at CNN, and other international thinkers. Join GPS editor Jason Miks and get informed about global issues, exposed to unique stories, and engaged with diverse and original perspectives.
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Check out all of Fareed's Washington Post columns here:
Obama as a foreign policy president?
Why Snowden should stand trial in U.S.
Hillary Clinton's truly hard choice
China's trapped transition
Obama should rethink Syria strategy
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