Congress and the President are buying time to negotiate by agreeing to raise the debt ceiling for six weeks. On the table is a discussion about the “entitlement” problem.
More people are moving into retirement where they expect Social Security and Medicare to continue as planned and promised. That contract with retired persons cannot and will not be broken.
So, somewhere in the working population’s life cycle a red line must be drawn to adjust the rules for Social Security and Medicare.
Here is a list of what must be considered:
- Raise the retirement age from 65 to 70 years for persons who are now 50 years and younger.
- Apply means testing for Social Security benefits such that if the head of the household or combination of spouses’ incomes are $50,000 or greater, they are ineligible to draw Social Security until and unless their income drops to that threshold.
Doing those things should resolve the problem for a group of people moving into Social Security.
- Consider a new model for Social Security that is more economically productive and less sensitive to demographics.
- Specifically define and describe the problems associated with poverty in America so that a new and more effective set of solutions can be developed and implemented into law.
“Obama says talks OK -- after default threat averted
By DAVID ESPO, AP Special Correspondent
UPDATED: 10/08/2013 03:42:09 PM EDT
President Obama makes a point during Tuesday's press conference
WASHINGTON (AP) -- After weeks of gridlock, House Republicans floated broad hints Tuesday they might be willing to pass short-term legislation re-opening the government and averting a default in exchange for immediate talks with the Obama administration on reducing deficits and changing the three-year-old health care law.
At the White House a few hours later, President Barack Obama said he was "absolutely willing" to hold talks on those terms. "If reasonable Republicans want to talk about any of these things again, I'm ready to head up to the Hill and try," he added.
The events unfolded as the stock market sank for the second day in a row. And in the latest in a string of dire global warnings, the International Monetary Fund said failure to raise America's $16.7 trillion borrowing limit later this month could lead to a government default that might disrupt worldwide financial markets, raise interest rates and push the U.S economy back into recession.
Treasury Secretary Jacob Lew has said the deadline for Congress to act is Oct., 17, setting that as the day the government will exhaust its ability to borrow funds and will have to rely day-to-day on tax and other receipts to pay its bills.”