How to Solve America’s Spending Problem | 5 Minute Video
Everyone complains about America’s debt, and rightly so, but how do we get out of it? As Cato Institute’s Michael Tanner explains, spending on entitlement programs — Social Security, Medicare and Medicaid — has exploded in recent decades. We must slow their growth or they will soon swallow the entire federal budget. In five minutes, learn how America can preserve these programs and get out of debt.
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Script:
Both Democrats and Republicans complain about America’s national debt, what a looming crisis it is, and how we have to do something about it. And well they should. The numbers defy comprehension.
Currently, the debt stands at around $17 trillion dollars, much of that coming in just the last few years. To put it simply, our government spent $17 trillion dollars more than it took in.
That’s one huge deficit, wouldn’t you say?
How did it happen?
To answer that, we have to focus on three programs: Social Security, Medicare and Medicaid.
Social Security is a government pension program for people over 65; Medicare is a government health insurance program for people over 65; and Medicaid is a government health assistance program for people who can’t afford to buy insurance.
The debt picture has admittedly become a little more complicated — and more severe — because of the massive increases in government spending on unemployment benefits and other federal assistance programs related to the 2009 recession. But the big three – Social Security, Medicare and Medicaid – remain at the center of the problem. In fact, spending in every other area, including defense, all other appropriations, and other federal entitlements, though significant, make up a smaller share of the economy than has historically been the case.
These three programs are not new. The first Social Security check was issued on January 31, 1940. Medicaid and Medicare came into existence in the mid-sixties during the administration of Lyndon Johnson. All three programs were greatly expanded in 1972 during the Nixon Administration. And every year they gobble up more and more of the Federal budget.
How much more? Just listen to these numbers from the Congressional Budget Office: In 1970 these three programs accounted for 21 % of all federal spending. By 2012 they accounted for 42% of all federal spending. And now we’ve added a fourth new Federal assistance program, the Affordable Care Act of 2010, otherwise known as ObamaCare.
Just to give you one example, Medicare Part B, the part of Medicare that covers doctors’ services, was originally projected to cost $500 million dollars a year. In 2012 it cost $164 billion.
Whatever you think about the value of these programs: How are we going to pay for them?
The Congressional Budget Office projects that before today’s 25 year olds are ready to receive Medicare, these four programs — Social Security, Medicare, Medicaid and the Affordable Care Act — are expected to cost more than all the money the government collects in taxes. That would mean we would have to borrow money to pay for everything else — our armed forces, road repair, everything.
So, what do we do?
Well, we could increase taxes — massively. But to raise the kind of money we’d need, we’d have to significantly increase taxes on everybody, especially the middle class. That means taking a lot more money out of your paycheck and mine. Because if you think we could get what we need from the rich, think again. If we took all the earnings of people who make more than a million dollars, a 100% income tax, that would only net us a little more than $600 billion dollars. And obviously, we could only do that only once.
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Here's a idea, require headge funds to divest from health care. Over 20% is spent on "administration costs " for private insurance, and they are still making billions in profits per quarter. Medicare administration costs are set at 2%
Don’t worry. Biden finally beat Medicare.
today mandatory spending is 72% of the revenue the government takes in. Add the interest on the debt (which is more than defense spending) and it exceeds all the revenue.
Yah. 35 trillion now. They have never changed any payment programs and only increased its spending. So sad for debt is so high they’ll never pay it off.
This is the main thing that should be talked about this election cycle.
The MAIN THING!!!
Excellent.
I'll send this to everybody on my mailing list and see if they have any common sense answer besides what has been said in this video
Well done this time Prager U!!!
Social Security should Not be included in this. WORKING people pay into it with EVERY paycheck. With the expectation it will be there for retirement. The government has mismanage and CHEATED American workers out of this benefit by using at a slush fund. It is Not an Entitlement!
I just love the idiots on here saying cut defense spending.
Theyll sure want it when missiles are flying at us.
People are fing dumb
Now the National Debt is twice that $34,000,000,000,000!
$50 Trillion Debt in 2033 and $100 Trillion Debt in 2050. Get enjoy America, you deserve for your ignorance
Cut spending now!
And massive tax cuts for the richest Americans and corporations.
Let me say
I enjoyed your video
Your better than other people that make the same video
In addition to this minor "solution" I suggest cutting spending on EVERY fed dept by 5% from the previous year, every year for at least 10 years. Any dept head who refuses or claims they can't cut the 5% should be fired, this includes all three branches of government, who I think should start with a 10% cut to set the standard.
Bloody hell, the debt has doubled in 8 years time. Way to go America. Its like Zimbabwe except that the world is using its currency.
What about a 3 year freeze on all spending, and then 2% increase from rhen on?
I see ads for social spending using actors way under 65. That tells me something is wrong with the existing system.
As an immigrant my self I know people who be come citizens n the first thing they do is get a residency“green card” for mom n dad, and day one here in the states they go to apply for SS without ever contributing.
medicare and social security were paid for by the 15 % of our/my pay for every year we worked age13-? in my case That is not to be considered the same as any other expense unless you want to cut me my current 2+million dollar chk for what I have paid in so far(multiply that by the millions of people in my situation and the debt looks awfully small)
Social Security and Medicare are programs we pay for. They are not welfare handouts. We pay 12.4 percent of our paychecks for Social Security alone. Social Security takes in more than it pays out. The government takes from Social Security and sends money to other countries.
Easy. They'll stop spending money when we stop letting them waste our money.
This didn’t age well… 17 trillion. Govt says “Wait till you see what is next!”
just watching this video now. $17 trillion… that's cute…
Wow, when they filmed this the debt was 17 trillion. It's now 30 trillion. I don't give us long. We're going bankrupt, and it's accelerating.
This is not the fault of the people. This mess was created by the government. The lame duck do nothing Government. If they did their job, they could fix this in a few years time. Stop disrespecting the working Americans thay have paid nto this for decades.
Just cut all them programs completely also food stamps and unemployment too would fix everything
Uhh you don’t want to look at the debt now…
Regan increased taxes slightly and the age of full retirement by a few years and increased the life of SS by over 20 years.
Time to do this again but our politicians are too busy pandering for votes to do this.
Also stop the fraud in these programs.
29.7T at 11Jan22
……17 trillion sounding like small fry rn
The cost of medicine is the root of the problem. 3rd party payer systems eliminate the demand controls that naturally keep prices down. 20 year utility patents on drugs and medical devices also create mini-monopolies due to no competition for that product. Also, the largest generation America ever had is over 65 and getting 2 of this Big 3. Those statistics are also deceiving seeing they are not taking inflation into account.
Jeez. That steep rise was under Obama's
Don’t tax income tax assets and asset accumulation
In combination with reform
Then create a proper public health system. This would reduce costs by cutting out all the insurance company profits and marketing budgets reducing the entitlement costs and overall health spending without hurting investment
And most importantly, cut foreign aid to Israel.
So then what are us old people to do? Just die? We paid all our lives, working hard for you. Now when we are old you tell us all our work and mony is gone. Thanks, that is exactly what I expected from a bunch of overprivlaged dipshits.
Once the baby boomers are gone this price will go down
Social security is not government funded??
How about eliminate 95% of the useless bureaucratic job's. SMALLER GOVERNMENT!. And remove most people under 65 from receiving social security and Medicare. And stop welfare from being a life long form of income, it was meant for a helping hand , not the current from it has taken on.
They solved it with their "vaccination". Give it a few years, we'll be social distancing in a new way.
So what about we also cut the military budget too if you care about the debt.
This video needs to be updated EVERY year.
So you are basically saying you want people to pay in their entire life but die before they have a chance to collect anything in return!
Sounds like a typical insurance company 🙄