Franklin D. Roosevelt the 32nd President of the United States initiated the “Social Security Act” organized by the government as a regulated system. The government system was designed to provide full retirement benefits to all Americans that required mandatory donations to the system during all of our employment years. Because of the current $13 trillion dollar deficit, president Obama and congressional members are attempting to cut Social Security to reduce the national deficit.
The middle class will pay bearing the cost because the richest 2 percent of the country got an extension of tax cuts they didn’t need at a cost to the middle class. Also included in this historic fluke, one year extension of unemployment benefits and a one year cut in the Social Security tax causing congressional members to add more damage to the deficit. This will seriously threaten government sponsored program’s finances.
The Bush tax cuts were supposed to expire in 2010. Ending a drought that did not create economy opportunity for the middle class instead taxes were raised smack dab in the middle of a downward economic cycle. President Obama caved in and compromised for the next two years.
The Democrats and Republicans will opposite the same situation as the Bush tax cuts at the end of 2011 when the Social Security tax cut is scheduled to expire. This one congress should be very careful with (they won‘t) as the tax cut dilemma will apply to all middle and lower class leaving the tax bill on working American‘s forever.
Both parties will focus their attention this spring on the government’s debt ceiling preventing the government from any further borrowing.
Since the government has a large deficit, with spending exceeding revenue, hitting this limit would mean the government would not have enough funds to pay for all of its programs. This also would mean that the government could not pay interest or principle on debt that is due. The government could default on its debt forcing Congress to vote to borrow from China to settle our national debt that they already own.
The debt crises could cause the biggest financial failure greater than the Great Depression at the federal level potentially leading to circumstances in which president Obama signs whatever debt ceiling bill House and Senate hands him. The argument from the administration will be that they have no choice or the president will scream he had no choice.
To prevent a debt ceiling disaster both parties will have to find a solution for Social Security and Medicare. They have to push President Obama to announce in advance that he will never sign a debt ceiling bill that includes privatization and cuts to Social Security, the working man’s retirement fund and Medicare, two of the countries most important social programs. Bear in mine that this country was founded on capitalism and socialism.
These programs are essential to the financial security and health of millions of Americans. President Obama must fight to support Social Security and Medicare. Obama cannot sit back and wait at the last minute like he did the Bush tax cuts forced to compromise until 2012. The president needs to stand up and show some leadership or cojones, as Sarah Palin once stated.