President Biden has said many times that Republicans are aiming to cut Medicare and Social Security. Though through a recent study published by a professor of economics at the University of Chicago and the Committee to Unleash Prosperity Biden’s own policies are cutting these programs. Casey Mulligan, University of Chicago economics professor, explains that Biden’s “anti-growth” policies are actually at the center of destroying these senior citizen programs.
According to the report, Biden “anti-growth” policies will ultimately cut Medicare and Social Security by at least $400 billion but potentially up to $900 billion. The exact amount would depend on how long these anti-growth policies exist.
According to Fox the report says,
“Joe Biden has pledged many times that he will not cut Social Security and Medicare benefits — and has even accused Republicans of a secret plan to cut these programs for seniors,” the report states. “But the real risk to the financial security of Americans in retirement comes from Biden’s anti-growth welfare, regulatory, tax and employment policies that will reduce GDP, growth, work and wages.”
“Promised Social Security and Medicare benefits are also put in harm’s way by low- or negative-growth economic policies,” writes Mulligan. “Today’s benefits are paid for out of today’s worker wages and tomorrow’s benefits (and thereafter) are paid out of future wage growth. Quite literally, the programs give the elderly a share of the earnings of the nation’s workers.”
“The combination of health insurance expansions, economic regulation (including policies related to welfare programs and labor markets), energy or climate regulation, education policy, and business taxation reduced growth and thus revenues into the trust funds,” according to the report. “Because Social Security and Medicare operate on a ‘pay as you go’ basis, benefits will be severely squeezed in the years to come as Congress struggles to figure out how to make up for this worsening structural deficit. Even before that happens, less national labor income translates to lower Social Security benefits, lasting the rest of their lives, for every worker reaching retirement age.”
Mulligan also explained in the report that under Biden’s reign real wages have fallen as they adjusted for inflation, and many returns on investments have gone into the negative. This is not sustainable for our society. And the worst part is that these findings are consistent with U.S. Department of Labor data.