If/when we default, the dollar will no longer be the world's reserve currency. The Chinese, Russians, Arabs, etc. are looking to supplant the dollar, but they don't have any real substitute except for a basket of currencies. The US economy is three times that of China. The Euro is collapsing. Any default by the US would send the global economy into a tailspin. The US consumer has acted as the world's global economic engine. A broken dollar will make it very difficult for Americans to buy imports.
Means test it? Commie. ;) Seriously though, even though there are worse problems, it doesn’t mean SS doesn’t need to be cut. To balance the budget we need to cut SS, Medicare and Defense by about 30% and the rest need to be cut 50%. THAT is how high our deficit is.
You don't cut with a meat ax. Moreover, it much more difficult than that for the entitlement programs, which will face an increase in enrollees as our population ages, i.e., the number of people over 65 will double to twice what it is now in 20 years and by 2030 one in five will be 65 or older. As I have stated previously, we need a long term plan on how to reduce our deficits and institute fiscal responsibility. There are many different ways to do that, but in the end, it all boils down to political will by our political leadership and the people. There is no easy or painless way out of this mess.
Hmmm kind of like the interest rate is higher on those two than SS which makes them almost impossible to deal with. Where have I heard that before? Medicaid needs to be block granted to the states. Medicare needs to be turned into a voucher that seniors can use to buy their own senior health care program. Either that or single year benefits need to be capped at, say, $80k per year. We simply can’t afford to pay for all the technology that the folks like Genetech and GE can come up with. I’m waiting for news of the first $1billion dollar pill.
There is no doubt that health care must be rationed. I would rather have the people do it than the government. Paul Ryan, Tom Coburn, Rep. Price, and others have some good plans to address the problems. Unfortunately, they don't have the support of the Dems or many Reps. I am pessimistic about anything being done until it faces crisis proportions and then the government will be forced to act making things much worse.
“As I have stated previously, we need a long term plan on how to reduce our deficits and institute fiscal responsibility.”
As I have stated, we don’t have a long term before our debt buyers flee and we have to cut a deal with whoever holds our bonds at that point.
Correct that to "taxpayer-funded health care must be rationed" and we are in 100% agreement.
It seems that a majority of Freepers are in denial about this reality, which doesn't say much for the electorate at large....