Last year, conservative commentator and bestselling author Ben Shapiro properly pointed out that Social Security is a Ponzi scheme that is heading in the direction of insolvency, drawing the ire of both sides of the political aisle.
The decision to avoid the most important next rail of American politics at all costs was made by experts on the Left and Right, who chose to concentrate on Shapiro’s claim that retirement itself is a bad idea for the majority of staff. They did everything to refute his objectively accurate claim that Social Security will be bankrupt within ten years without dramatic and extensive reforms.
The Daily Wire number mentioned the history of Social Security, pointing out that America’s life expectancy in 1935 was 64, that range has now grown to 78, and previously, there were five staff funding the benefits of each Social Security victim. Currently, only two workers pay for the benefits of each senior who receives benefits. If the goal is to maintain our failing entitlement programs, raising the retirement age would be a start. However, it would not suffice in the unlikely event that Congress and the White House decide to do so.
Democrats or Republicans would like to admit that the country’s economy is in danger of collapse sooner than the overwhelming cost of entitlements, along with the nearly$ 35 trillion national debt, record deficit, and inflationary spending. The pundits “dunking” on Shapiro are doing their audiences zero favors. Economic realities do n’t care about your feelings.
Fiscal conservatives and others who agree that the nation’s bloated and fraud-ridden defense budget and discretionary spending, particularly foreign aid, are areas where budget cuts would be prudent. However, that leaves out the forest for the trees.
Defense spending, while itself out of control and in desperate need of an audit, makes up 12 % of the federal budget. In fact, as of late 2023, the federal government spent more money on the interest payments on the national debt than it did on the entire defense budget,$ 870 billion to$ 822 billion, respectively, in 2024. More than twice as much of the interest payments on the debt and the defense budget combined, the entitlements account for 55 % of all federal spending.
Medicare will be the first domino to fall. The Medicare Part A trust’s default will be as early as 2028, leading to significant benefits cuts for tens of millions of people. Social Security is less than a decade from insolvency. The trust funds supporting the program will all be underwater by fiscal 2033, triggering a 25 % reduction in benefits across the board, regardless of age, income, or need.
One of three scenarios will likely occur when these programs go bankrupt. One, there are massive reforms in an effort to save entitlements. Two, the programs cease to exist, or at the very least, they limp along, unable to provide the benefits promised to elderly taxpayers.
Or three, the most likely scenario, where the government prints so much money to support these failing programs that it causes an inflation cycle that renders state revenues of two grand per month utterly irrelevant. Meanwhile, this makes it even more difficult, maybe impossible, to make the interest payments on the national debt, further degrading the nation’s credit and ability to take out more debt and perform the basic functions of government.
In any case, the noise you hear in the distance is a train, and it’s moving quickly and hard.
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The leaders of both major parties have decided that lying to the public and pretending they do n’t understand how their spending will hurt their constituents the most. In an act of great cowardice or ignorance, the pundits who support them have chosen to support it.
Keep pressing on Shapiro and the select few journalists who understand economics at your own risk. You’ll have to make a second opinion as soon as possible. Although it does n’t mean much right now, I’d be remiss if I did n’t mention that this was n’t necessary.
Brady Leonard ( @bradyleonard ) is a musician, political strategist, and host of The No Gimmicks Podcast.
