When the entitlement voters outnumber the people who are supporting them, will that cause an economic collapse?

Question

......taking all the federal entitlement programs along with it - SS, SSI, Medicare, Medicaid, EBT cards (food stamps) etc! I am not "blaming" anyone. Just throwing out a dose of reality! But, it sure looks like the US is pretty far along that slippery slope! And.... yes, I am on SS and Medicare also, very concerned that this collapse could happen before I "move on!"

Answer 1

One respondent writes that we have a few decades before economic collapse. I don't think it will be that many years. Our national debt will be 20 trillion in three years. As more debtors realize that the average taxpaying household will not be able to even pay the interest on this additional $300,000 debt per household, the cost of borrowing, the interest rate, will increase to reflect the increased risk of non-payment.



Increased interest will swallow up the entire national budget - the result will be hyperinflation, depression, anarchy and civil war.

Answer 2

The collapse is coming, but I would guess we have a few more decades, less than a century.

I'm buying silver, as paper money is on the path of the German Mark from last century.

The term 'entitlement program' has a legal meaning.

Some people want to change the meaning, so it would not include 'earned' benefits.



TANF - cash assistance - is NOT an entitlement program, it is a block grant program. Very diferent laws govern it, compared to other entitlement welfare programs like food stamps.



So there are two types of entitlement programs, earned, and unearned.

You qualify for some entitlement programs if you were born poor, and keep yourself poor.

For other entitlements, you have to get your leg blown off (VA disability).



Politicians do a good job of never making it clear what money is spent on entitlements.



~ ~

~ ~quote

The most important examples of entitlement programs at the federal level in the United States would include Social Security, Medicare, and Medicaid, most Veterans' Administration programs, federal employee and military retirement plans, unemployment compensation, food stamps, and agricultural price support programs.

http://www.auburn.edu/~johnspm/gloss/entitlement_program



~ ~

Here is another viewpoint:

~ ~quote

There are some common misconceptions related to the definition of an entitlement program. Many people believe that any program where the government gives people money is an entitlement program, but this is not the case. For example, people actually give money to the Social Security program during their years of work, so they are actually paying to gain access to that program, and it doesn’t necessarily qualify as an entitlement. Medicare is similar, although there are actually parts of both programs that could technically be called entitlement program elements.

http://www.wisegeek.org/what-is-an-entitlement-program.htm



Please notice how it says social security "doesn’t necessarily qualify as an entitlement.".

When conducting federal business, passing laws, making regulations, a program is an entitlement, or it is not. They are making up their own definition of 'entitlement', that does not agree with the Federal budget offices.

The 'wise geek' makes the mistake of thinking that entitlements are NOT earned, and that is just not true, if we are discussing Federal budget issues, some are earned, some are not.



~ ~ ~

Also

According to projections from the Congressional Budget Office, the federal entitlement programs—Social Security, Medicaid and Medicare— represent nearly 45% of federal spending and cost as much as 10% of the GDP, which, if unchanged, will grow to 16% by 2035. As Congress looks for ways to decrease the budget deficit, it is likely that these programs will face reforms and benefit cuts. Brookings experts discuss what cuts may look like, and examine the role these programs play in the growing budget deficit..

http://www.brookings.edu/research/topics/entitlements

Answer 3

First, a correction, Social Security and Medicare are not entitlement programs even though the Liberals keep saying that they are. The working people pay into this for their whole life then just like insurance, they expect to receive the benefits that they paid in for. Most Republicans understand this also and know that we need to make changes to these programs to fix them.



As for Medicaid, welfare, and food stamps those are entitlement programs that reward people for either not working or doing the minimal amount to keep full benefits and these programs need to change to help people get off of government aid instead of rewarding bad behavior by having some families being 3 or 4 generation all living on government aid.

Answer 4

Actually this is the case now. Entitlement voters outnumber the people who are supporting them. That's why we have our current President. For the time being, the government just prints more money and creates more debt to stall the inevitable, but at some point the jig will be up.

Answer 5

It's simple math. You cannot spend more than you make.