Glenn Beck: The $53 trillion asteroid

By Glenn Beck
CNN

NEW YORK (CNN) -- Let's say a giant asteroid was headed toward Earth right now and experts say it has a good chance of ending civilization as we know it. Let's also say that we've known about this asteroid for years but even as it gets closer and closer our leaders do nothing.

"Don't worry," they tell us, "The next administration will figure something out."

With the future of our country at stake, would Americans really sit back and tolerate that kind of inaction? Of course not -- we'd be sharpening our pitchforks and demanding answers.

Well there may not be a space asteroid heading toward us, but there is an economic one -- and the threat to our future is just as severe.

You might think that I'm talking about the recession (sorry: potential recession) or credit crisis, but I'm thinking bigger. Much, much bigger.

Let me give you three numbers that will put this economic asteroid into perspective: $200 billion, $14.1 trillion, and $53 trillion.


$200 billion is the approximate total amount of write-downs announced so far as a result of the current credit crisis.


$14.1 trillion is the size of the entire U.S. economy


And $53 trillion is (drum roll please) the approximate size of this country's bill for the Social Security and Medicare promises we've made.

While no one will ever mistake me for Alan Greenspan, it seems to me that the third number is quite a bit larger than the other two. It also seems very few people care.

According to the latest Social Security and Medicare Trustees report (and I use that term loosely since it has the word "trust" in it) released earlier this week, the economic asteroid will first make impact in the year 2019 when the Medicaid trust fund becomes insolvent.

Only an immediate 122 percent increase in Medicare taxes and a 26 percent increase in Social Security taxes can prevent (or more likely, delay) its impact.

More?

Glenn Beck: The $53 trillion asteroid - CNN.com

I have heard many so called "solutions" to the S.S. funding problem. I believe the best answer is,dare I say it..means testing. This is an insurance policy,you don't collect unless you can prove you need it. Controversial? sure it is but so is increasing the withholdings!

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"Destiny must be shaped and not left to mere chance."..Spencer Collins

I've heard solutions, too...But ALL of them hve been shut down by the Democrats because Social Security is a cornerstone of Democratic policy...It was created by FDR and Democrats consider it theirs and no one is allowed to try and change it...It is widely called "the third rail" because anyone who tries to work on it gets attacked...

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"You get the respect that you give" - cnredd

Yup.it's a sacred cow but something must be done that does not hurt people who are just about to collect benefits! We also want to ensure that young people will have benefits down the road. A compromise must be found,we can ignore this for now but someday this problem is going to be a disater.Most people approaching 60 reject the idea of raising the retirement age to 70. Obama claims to have found the solution,raise withholding on the wealthy and that ain't gonna fly. Perhaps the best solution is to keep the plan we have intact for people who are now 55 and older and for younger workers,let them put their money where they think they will receive the most benefits.However,there are problems with this as well,I think the plan went south when S.S. and SSI disability were "combined"..they should have been separate entities.

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"Destiny must be shaped and not left to mere chance."..Spencer Collins

To start to address the situation, I am for removing the Social Security tax cap, and turning a regressive tax into a proportional one.

Social Security tax is levied on covered earnings up to $90,000 this year. This amount goes up each year at the same rate that average annual earnings rise. In 2002, the most recent year with complete statistics, approximately 5 percent of covered workers and self-employed earners -- 8.4 million people--had earnings that exceeded the cap.

Eliminating the tax cap would increase overall Social Security tax receipts by close to 20 percent. Over the next 10 years, that would amount to more than $1.3 trillion dollars in new payroll taxes.

Yes, it means I personally would be paying more taxes, but (if they can prove the system won't still go bankrupt) I'm OK with it.

Fixing Social Security:

I agree with this plan but it will be a tough sell.All the other plans are by far more complex with their own set of problems.Conservative opposition to this plan would be swift and venomous.

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"Destiny must be shaped and not left to mere chance."..Spencer Collins