Entitlement Programs - the Answer is Less Government
Bob Barr on: Entitlement Programs
The cost of entitlement programs is pushing America towards financial ruin. Even though the traditional, bloated federal welfare system had been reformed in the late 1990s, other programs like Medicaid, Medicare, and Social Security are unsustainable at their current spending rates. With the latter two programs alone facing estimated total unfunded liabilities topping $100 trillion, the government will eventually face the choice of raising taxes by as much as 50 percent or defaulting on promised benefits, if we do not begin taking action right now.
Government should stop acting as the welfare agency of first resort under the guise of providing social insurance. In general, private charity should be the first resort for anyone in need. The process of welfare reform begun by Congress in 1996 should be continued to reduce even further people’s dependence on Washington. In 2007, for example, Americans gave more than $300 billion to charity, an increase over 2006 despite growing economic uncertainty. Government should eliminate regulatory barriers that inhibit private philanthropy, and expand tax deductions to encourage charitable giving.
As for Medicaid, Medicare, and Social Security, government must emphasize private choice in health care and private retirement accounts. Benefits also should be adjusted to reflect changing demographics as the Baby Boom generation retires, and to emphasize care for those most in need.
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