Streamlining Social Security?
As I indicated in my previous post, there’s a good budgetary reason the administration wants lower interest rates, – the dirty secret is that it allows for more spending – but back to DOGE.
President Trump has been doing all he can to keep his campaign promises. There were three that stand out:
- He promised not to touch Social Security or Medicare (which continually add to the deficit)
- He promised to increase our defenses (additional spending)
- He promised to cut spending (however, he wants an increase in the debt limit)
Problem is, all three of these largest categories are major contributors to our deficits, and therefore, our debt.
So, where can the administration cut? Agriculture? Don’t bet on it. Now, we’re back to efficiency.
Musk says, when it comes to Social Security/Medicare, he’s interested in rooting out fraud and elicit payments. Problem is SSA staffing levels are now at a 50-year low (have you tried to call them lately?) and the baby boomers are just now beginning to apply. Automated systems are good, but the processing of survivor benefits, to name just one, do require human intervention. Problem is that the entire federal labor force represents only a tiny portion of our nation’s annual deficit.
Why does this matter? Politics aside, your financial planning should take into account that future Social Security benefits – those after 2035 – may not look the way they look today. Congress has a poor record when it comes to courage.
Jim
