I’m Mary Walden, with economist MW, welcoming you to the economic perspective. Today’s program looks at continuing problems for entitlement programs. Mike, Social Security are federal programs that impact almost everyone in the country. The managers of those programs just released their latest fiscal checkup. What was the evaluation?
Mike: Summary Answer
- Same as in recent years – the programs face problems meeting their promises
- Both programs have special taxes dedicated to them, but those tax revenues are forecasted not to be sufficient
- New report says in 2015 SS won’t be able to pay all its promises – that is, SS checks will be less than promised
- Issue is more troubling for Medicare – that system won’t be able to meet its expected obligations beginning in 2026
- All is not lost – there are fixes that can be applied to SS
- Same for Medicare, but system is also wrapped up in broader debate about health care costs
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.