Obama Changes His Position on Cutting Social Security and Medicare Programs

Two years ago, President Obama was certain that Americans were ready to talk about cutting entitlement programs like Social Security and Medicare, but with the presidential elections on the horizon, he’s backing down due to public pressure.

Just two years ago, President Obama was certain that Americans were all set to talk about ways to cut entitlement programs like Social Security and Medicare. His “Chained Consumer Price Index” proposal was first touted as a way to control Social Security benefits (and other government spending) by indexing taxes and spending to the inflation rate. This would have had the effect of slowing the increases in entitlement programs over a period of time.

For years, the public has been inundated with messages about how Social Security and Medicare were draining the government’s financial resources. The Republicans have informed everyone that unless some prudent steps are taken, these programs could be in real danger by the year 2032. But many Americans feel that these are traditionally easy targets for the government whenever there’s a perceived need to cut fiscal spending. However, the facts are fairly astounding and do support the need to make some future adjustments.

The Medicare program accounts for about 15 percent of the national budget or $546 billion, currently with 50 million beneficiaries as of early 2015. Add to that the fact that an estimated 10,000 Baby Boomers retire every day placing new strains on the program. The Social Security program is no better and is, in fact, the largest federal program in existence. In 2014 alone, the Social Security program cost $845 billion and that number is rising quickly. By 2024, it is estimated that the program will cost over $1 trillion per year and many lawmakers are shaking their heads and wondering where this will end.

Though experts believe that Obama would still like to cut back on these programs, Democrats in general have not supported that viewpoint. Of course, Washington politicians have been known to vacillate widely on explosive issues like Medicare and Social Security during election years. With the 2016 elections only one year away, neither Republicans nor Democrats want to offend any of the larger voting groups. Statistics show that 60 percent of the voters in national elections are 45 years of age or older. This is also the group that would be most affected by reductions in benefits for the two programs.

Chad Centorbi of Centorbi Financial Group in St. Charles, Missouri recently said in an interview that the optimal approach for retiring Americans is simply to prepare better for retirement. “The day is gone where Americans can look to the government for financial stability during their golden years. Developing a strong retirement income can help ensure a long, confident retirement that isn’t subject to being significantly impacted by the possibility of future government cutbacks. This is a very achievable and important step that is being seen more as Americans approaching retirement realize that placing their future in the hands of the government might not be the best idea.”

At the recent White House Conference on Aging, Obama said that he did not believe Social Security and Medicare were in crisis, a viewpoint very different from his position two years ago. He also declared that as responsible citizens, it would be necessary to take steps to keep these programs strong and solvent for the future generations that would need them. Speakers and audience participants supported these comments, offering innovative solutions to assist and empower the aging population of America. Obama delivered a rousing statement that pleased the audience when he said that the best measure of any country’s greatness is how it treats its older citizens.

Centorbi Financial Group works to assist individuals with sound financial planning and creative retirement strategies. They believe in building long-term relationships using cutting-edge solutions that guarantee a steady rate of return during retirement. Chad is an insurance producer and investment advisor and is not affiliated with the U.S. government or any government agency. He is actively involved in a St. Louis charity called “Pedal the Cause”. The organization raises money each year for cancer research and every dollar goes to support this worthy cause. Centorbi Financial has offices in St. Charles, Missouri and Edwardsville, Illinois.

Contact Info:
Name: Chad Centorbi
Email: Send Email
Organization: Centorbi Financial Group
Phone: 636-634-9986
Website: http://www.centorbifinancial.com

Source URL: http://councilofeliteadvisors.com/liftmedia

Release ID: 98458