The definition of entitlement is: “having a right to something”. It also states: “a government program that provides benefits to any individual meeting certain eligibility requirements”. In America, our entitlement programs include: Social Security, Medicare, Medicaid, The Affordable Care Act (Obama Care) and a few others.
This month, the Trustees for Social Security and Medicare just released their annual report. It was five months late. The data is so dismal that they pushed the information back to a time when many Americans are busy with vacations and returning back to school.
For the summary or full report, please Google “Social Security and Medicare Trustees Report 2017”. The top entry will be the Trustees Report Summary. That’s what you want. It summarizes the full 269 page report and does so in 25 pages. This is official as it comes right from the government and the trustees for those two programs.
Are Americans really “Entitled” to these programs? According to the constitution…NO!
The constitution prevents the government from infringing on individuals rights. The Constitution does not grant rights. The Declaration of Independence said individuals were endowed with certain unalienable rights which include: Life, Liberty and the pursuit of happiness. Rights are not given in the constitution. The Constitution is written to prevent infringement of individual rights by government. This is backed up by the 1937 Supreme Court Ruling on Helvering vs. Davis.
Our Supreme Court ruled that Social Security isn’t a contributory insurance program. Both the employers and employees Social Security taxes will be paid to the US Treasury like any other revenue (tax) and WILL NOT BE EARMARKED IN ANY WAY. It is completely legal for our politicians to use social security taxes in any way they choose.
Entitlements are really a promise that politicians and governments make to their constituents. The law, ruled upon by the Supreme Court, backs this up. Do you trust your politicians and government to keep their promises to provide these benefits?
Over the next several blogs, I will discuss each program in detail so you can understand the financial health of each program and its sustainability. As always, my goal is to educate you on the facts so you can make the best financial decisions for your future.
Today’s lesson…By law, you are not entitled to any government programs. It’s at the government’s discretion to determine what you are “entitled to”.