#32002
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MountainBiker
Survivalist
member10

Vep, what they are talking about is what Medicare and SS will cost going out multiple generations, something like 75 years out if I recall correctly. They are not spending $7 Trillion a year currently. Someday they will, but when that day comes tax revenues will be far greater than they are currently. It is a huge problem right here today but the $7 trillion to $9 trillion comparative is apples and oranges.

There are two key problems with SS & Medicare. One is the aging population where fewer and fewer workers are supporting more and more retirees. The other is that most recipients receive far more in benefits than they ever paid in. The Medicare side of that equation is many times worse than the SS side. A typical person making $50,000 a year pays in $725 towards medicare a year which becomes $1,450 with the employer match. Decades ago they didn’t make anywhere near $50,000 and so paid in even less. Now in their retirement years if they have any major health issue they will incur hundreds of thousands in expense before they die. Multiply that by millions of people in the same situation. The SS side of the equation at that $50,000 income is $3,100 paid in each year with the additional $3,100 paid by the employer. That’s not enough to cover the eventual SS payouts across several decades, but it isn’t as bad off as Medicare.

This is why when you hear folks say they are entitled to their SS, Medicare, or SSDI because they paid taxes, it is wishful thinking. Few people even remotely pay in what they will take out in benefits. Mathematically it was all a big ponzi.