For decades, elected officials have turned a blind eye to the problems facing Medicare and Social Security.  A new report released today tells just how dire the situation is.

First, let’s get one thing straight.  The media’s use of “entitlement program,” when describing Medicare and Social Security, at times leaves a hint that these are taxpayer giveaways.  Taxpayers paid into these systems with the belief it would be there when they needed it.  The reality is that decades of failed government were spending this money like a drunken sailor in a bar while on shore leave.

According to the report, Medicare’s financial reserves will be exhausted in 2019.  Social Security’s financial reserves will be exhausted in 2041.  The solvency projections have not changed since last year.  Let our economy keep getting worse, and I would venture to say we will see these solvency projections get much worse.

If you are near retirement, don’t worry.  Your Grandchildren will bail you out of the financial mess which was created by the politicians you elected to run this country.  Yes, you heard me right.  Of all the chit chat I’ve heard regarding fixing Social Security and Medicare, those close to retirement will not see any reductions in benefits.

The sad reality is that most baby boomers have pensions, bought homes at affordable prices, and had their choice of good jobs.  Instead of baby boomers taking a cut in their Social Security and Medicare payments, cuts will be made to the benefits received by future generations.

Today’s generation already can feel the impact of less benefits offered by businesses.  Most companies have dismantled their pension offerings and converted them to 401k’s.  Home values are depreciating at a pace that rivals the Great Depression.  Many good jobs are still around, if you can afford a one way ticket to China or India.  Besides this, health insurance, energy, and food costs have eroded the typical workers disposable income.  And it is this same generation that is going to get stuck paying more into Social Security and Medicare to get less benefits?  Give me a break.

Politicians don’t want to correct the problems with Social Security and Medicare because they will get tossed out of office when they are up for re-election.  To fix Social Security and Medicare, it’s going to take increased worker contributions and benefit cuts to make these programs viable.

Soon, taxpayers will receive President Bush’s second tax rebate.  He, like many other politicians, understand tax rebates are great tools for re-election.  The tax rebates pacify the voting public and toss the responsibility of repayment on future generations that are nowhere near the legal voting age.  And guess what?  We accept the tax rebates with open arms and never question what this is going to do to our children and grandchildren.  If you ask me, that’s pretty darn irresponsible of us.

If you think about it, Social Security and Medicare are the largest ponzi schemes ever created.  And these programs are completely legal, despite the fact that this house of cards will fall down in the near future.

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