Washington Sacrifices Its Financial Rating to Feed the Sacred Cows | Doug Bandow | Cato Institute: Commentary

Washington Sacrifices Its Financial Rating to Feed the Sacred Cows | Doug Bandow | Cato Institute: Commentary: "The biggest recipients of welfare are the middle class. Social Security and Medicare only incidentally address poverty. The biggest share of benefits goes to people who could provide for their own retirement and purchase their own health insurance.

Of course, most recipients mistakenly believe that the two programs are social insurance, paid for by the recipients' contributions. In fact, the money collected is not invested; the systems' so-called trust funds and personal accounts are accounting fictions. The Supreme Court has ruled that the government has no legal obligation to pay anyone anything.

Indeed, if the programs really were genuine social insurance, they would not threaten taxpayers with more than $100 trillion in unfunded liabilities. In truth, the two are public Ponzi schemes. Unfortunately, with America's aging population the good times are long over.

America's military budget is largely foreign welfare — a form of foreign aid, if you like. The U.S. faces no significant security threats other than terrorism, which is best met through intelligence, Special Forces, diplomacy, and international cooperation. No other nation comes close to America in military might. America alone accounts for roughly half of the world's military spending."