Friday, December 9, 2016
Entitlement programs approaching terminal velocity
For decades we have known that the time would come when Social Security & Medicare costs would begin a rapid and explosive growth upwards. That time is no longer the distant future - but something that will take place next year, and the year after, and the year after. The long expected storm is now upon us, and as can be seen below, the amounts involved are staggering and they will arrive much faster than most people realize.
Based on Congressional Budget Office projections, total costs for Social Security, Medicare and Medicaid are likely to be about $120 billion greater in 2017 than 2016. Then almost double that amount in 2018, with an annual increase of $207 billion. Then almost double that amount again by 2019, with an increase of $372 billion compared to last year.
The half trillion dollar a year mark is likely to be hit by 2020 - before the next U.S. presidential election. With an annual increase in benefit spending that will continue to accelerate.
I wrote about this a while ago and it is my contention that the there is zero political will to correct this issue. My view is that these entitlements will lead to the political dissolution of the United States.
I hope you are preparing for this storm because it is not just an event that will take place at some point in the future. The future is now and most people are clueless.