- Posted: 6:01 AM, April 24, 2012
1. Social Security was doing badly before the recession because of math. More baby boomers are retiring in the coming years than workers will be paying into the system. What's made the math worse is that President Obama decided that a "payroll tax holiday" was important for current workers. Fine, except that with lower tax receipts flowing into the treasury every month because employees were paying less in payroll taxes, there was less money going to Social Security.
The Social Security trustees admit "the dismal outlook was fueled in part by the sluggish economy, which has slowed growth in payroll taxes that sustain the trust funds."2. Obama refuses to even discuss seriously the need to reform these fiscally unstable entitlements. He has repeatedly sent his Treasury Secretary Tim Geithner up to Capitol Hill to discuss the budget in front of Rep. Paul Ryan's committee and every time he agrees that the entitlements are on an unsustainable path, but when asked about Republican proposals (because there are no Democratic ones), he just says "we don't have a definitive answer....we just don't like yours."
3. Obamacare makes matters worse. The president is so committed to his health care reform law that he's making Medicare less financially stable and hurting popular programs.
"This week, the Government Accountability Office questioned the Obama administration's decision to roll back planned cuts in payments to commercial insurers that administer popular Medicare Advantage plans."
Perhaps Obama will go back to his tried a true position of blaming Bush. Though one, that. Bush expended just about all of the political capital he had at the start of his second term in what turned out to be futile effort to reform Social Security .
Well, maybe Obama can blame his predecessor for this. If Dubya had succeeded, Obama wouldn't have this problem.