Morning Bell: The Recession Did Not Create Our Entitlement Crisis

Conn Carroll / May 13, 2009

Reuters reports: Recession Hurts Medicare and Social Security. The New York Times blares: Recession Drains Social Security and Medicare. And CNN follows suit: Recession Hits Social Security Hard. This spin all comes out of the Social Security and Medicare Boards of Trustees annual report which is signed by Obama Treasury Secretary Tim Geithner, Obama Labor Secretary Hilda Solis, and Obama HHS Secretary Kathleen Sebelius. Their report blames the “economic recession” for growing shortfalls in both the Medicare and Social Security programs. But our entitlement crisis existed long before the current recession, and it will haunt us for decades to come unless something is done soon.

Spending on Social Security and Medicare already totals more than $1 trillion annually and accounts for more than one-third of the federal budget. Recession or no recession, entitlement spending is on track to double by 2050 and tax rates for all Americans would have to double if the programs are not fundamentally reformed. (more…)