by Karl Denninger
So far in this campaign season, Americans have heard about building a wall on the Southern border, banning Muslims from America, changing foreign policy strategy in the Middle East, stopping illegal immigration—and how big Donald Trump’s hands are. Yet they haven’t heard much serious discussion about meaningful entitlement reform. It may not bet be the most exciting topic, but it’s on a short list of the most important.
The United States spent $888 billion on Social Security and $546 billion on Medicare in 2015. Health-care costs are skyrocketing. We’re seeing double-digit insurance-premium hikes, with the expectation that they will only get worse unless we seriously overhaul the Affordable Care Act.
In 2015 (Fiscal Year) the Federal Government spent 1,297 billion, or more than double the cited amount above, on Medicare and Medicaid. I remind you that while there is an offsetting tax receipt for Medicare there is no such thing for Medicaid; it is a pure entitlement.