I support making the adjustments necessary to our Social Security and Medicare programs to ensure they are solvent and available for our children.

Problem

Currently, the Social Security program takes in more yearly cash  than is paid out. The extra cash is considered an asset in the Social Security Trust Fund. This extra cash is then "loaned out" to another part of our government which shows this money as "revenue" and spends it.  One can logically ask the question: if this huge amount of money must be repaid to the Social Security Trust fund, where will the money come from to do this? Click here to see what our federal government has to say about this.

Under current law: Medicare is already running cash deficits and its assets will be depleted by 2008; Social Security will begin running cash deficits in 2014 +/-and its assets will be depleted by 2032 +/-.  Changes must be made soon to these programs to insure their solvency for our children and younger adults.

Background

Crafting an intelligent solution should be based on a solid foundation of knowledge relating to three areas:

• Our economic and fiscal climate in the past and present, together with an understanding of possible future expectations and their likelihood.

• Past, present and likely future demographic changes in our country's population.

• Specific options for Social Security, and their likely consequences.

Rather than attempt to set forth here a lengthy explanation of these three parts, I refer you to an excellent graphic presentation of this material located on the website of the Concord Coalition.

• For materials explaining the economic and fiscal climate, click here.  (Note: Requires Adobe Acrobat software)

• For materials explaining the demographic impact, click here.  (Note: Requires Adobe Acrobat software)

• For materials explaining specific options for social security, click here.  (Note: Requires Adobe Acrobat software)

TIP:  If you don't presently have Adobe Acrobat software installed on your computer, you may download it free from the Adobe website.  Click here to go to that site.

For links to other sites that will help you become better informed on these and other budget priority issues, click here.

Need For Action

I am committed to taking positive action soon to see that Social Security remains strong. Changes must be made in our entitlement programs. Either Americans must agree to pay the full costs of the promised benefits, or the benefits must be reduced to a level that Americans are willing to finance, or both. There are no other responsible courses of action.

• If we refuse to make those choices, and continue to deficit-finance runaway entitlement costs, the impact will be to gradually slow down the rate of economic growth in our nation.
• Our resources will be drained away from productive investments and will be used instead to provide income and health insurance for seniors.
• At first, the economy will continue to grow, giving most people a false sense of well being. But gradually growth will slow, until decades from now, the economy will be in decline. Repairing the damage then, if it can be done at all, will be far more difficult than acting today to prevent it.

I believe Vermonters need access to facts about likely future scenarios and choices in order to better finalize their preferences in reforming social security and related entitlement programs. I hope this web site helps in that regard.  I also am providing Vermonters with this type of information as I travel around Vermont during this campaign. 

Please let me know your thoughts on which solution you feel is best for Americans. Click here to tell me your ideas.  Your feedback will help me in making the most appropriate choices for Vermonters.

Back to: Rick Hubbard on Issues.