America must fulfill the obligations it promised, but not deny future generations the opportunity to pursue an alternative retirement plan.
For far too long, Washington has found a place for its involvement in the lives of Americans where it doesn't belong. By doing so, it has discouraged personal responsibility.
It is time for the U.S. to revise the way it deals with its long-term obligations. According to the independent Congressional Budget Office, after years of irresponsible management, Social Security is now in a state of perpetual deficits. In the next ten years alone, annual Social Security deficits will range between $28 billion and $120 billion. And over the next 75 years, Social Security has a projected $5.4 trillion unfunded liability. If we continue to stand idly by, we not only hurt Social Security, but also add to our $14.3 trillion debt.
The time to strengthen and save Social Security is now. Every year that we wait, the harder it becomes to make the system solvent for our children and grandchildren. While we have an obligation to fulfill the mission of retirement security promised to our current and near retirees, we have an equal obligation to ensure today's younger workers have certainty while making their retirement plans.
Medicare also needs strengthening and saving. The Path to Prosperity offers some bold reforms of Medicare, one of which is to create a competitive marketplace for Medicare that encourages competition and therefore leads to lower costs.