The White House is bracing for a standoff with conservatives who want to tie spending reforms to the next debt ceiling increase. President Joe Biden‘s intransigence on spending is disappointing given his significant involvement during the deficit reduction talks in 2011. The situation is even more dire now after Congress issued massive new debt to deal with COVID and the misguided lockdowns.
While COVID-related spending has pushed our debt-to-GDP ratio to its highest level since World War II, the growth of federal entitlement programs is a far greater threat to our country’s economic future. The Medicare and Social Security Trustees—a group consisting mostly of senior Biden administration officials—report that Medicare’s Hospital Insurance Trust Fund will be insolvent by 2028 and Social Security’s trust fund will be insolvent in a decade. Unfunded liabilities for these two programs are projected to exceed $71 trillion over 75 years. And no program has grown as much as Medicaid, which used to be for the poor and vulnerable until Obamacare and COVID-era policies expanded enrollment to roughly one in four Americans.
The full article can be found in Newsweek.