David discusses how Mitt Romney is at the forefront of trying to save Social Security, Medicare, Medicaid, solve the national debt problem, all while simultaneously trying to save the country.
In a recent interview with former Power of Zero Show guest Maya MacGuineas, Mitt Romney discusses something that should resonate with you if you care about national debt and the future of the country.
David believes that if Romney were to get through the Trust Act he has proposed, he could very well save the Republic. And he appreciates the fact that while some may avoid saying things that could get them voted out of office, Romney isn’t afraid to speak his mind – something that David sees as a sign of integrity.
In his interview with MacGuineas, Senator Romney talks about the frightening issue of the additional debt and the already existing debt, and points to the fact that over $400 billion was spent on the interest alone in 2021.
David sees raising interest rates as the only way to combat inflation. Argentina, which has its inflation at 50%, recently raised their interest rates 250 basis points, from 40 to 42.5.
For Senator Romney, at some point, the U.S. is going to be spending more on the interest than they are on their military (currently $700 billion). He isn’t sure as to how you can be the leader of the free world if you’re having to pay hundreds of billions of dollars in interest and can’t even keep up with your military, education, support your health care system, and so forth.
David Walker, author of America in 2040: Still a Superpower? A Pathway to Success, shared a similar feeling on the Power of Zero Show about a year ago – saying that a country can’t remain a superpower for long if it can’t get a handle on its finances.
In the interview with Maya MacGuineas, Mitt Romney also touched upon the importance of taking action before trusts such as Social Security, Medicare, and Medicaid run out of money. His words seem to indicate that dramatically cutting these programs for baby boomers isn’t really in the cards, which leaves higher tax rates as the solution.
An additional point Senator Romney made during his interview with MacGuineas is the fact that continuing to add debt at a time like this is threatening our future, as well as the future of our kinds and grandkids. Seniors need to be protected with Medicare and Social Security, as well as Medicaid and keep America strong. As history of great civilizations has taught us, a characteristic of their failures is the beginning of massive spending that was greater than the money that was taken in.
For David McKnight, these possible solutions might be too little, too late, but he still admires Romney’s willingness to discuss such a polarizing issue.
In the interview, Senator Romney shares what he considers a possible solution to the issue at hand. And that is dividing the different trust funds and establishing a bicameral and bipartisan Rescue Committee of sorts for each one. This may not solve all four trust fund deficits but if a solution is found for any of them, and if it can bring balance and long-term solvency, it would create the impetus needed to take on the effort even further – and potentially solve all of them.
David likes the fact that Romney brings Americans up by staying on the country’s current fiscal path. Nobody would like for the U.S. to go bankrupt but people would like it even less when debt gets so large that the costs of service in it consumes the entire federal budget, and the benefits of the various programs would get cut dramatically.
Baby boomers are the single largest voting block of the nation and they won’t risk losing their Social Security, and Medicare benefits, as nobody wants to alienate that particular block of voters. However, it’s going to be generation X and millennials who are going to pay the price – with Social Security age potentially being moved out to 72 or 75.
Romney doesn’t believe that most Americans realize that talks about balancing the budget are only matters related to one-third of the budget.
David is encouraged by Senator Romney taking the problem head on, and identifying it as the foremost problem. He sees it as the type of leadership that David Walker called for in his most recent book.
According to David, for people interested in adopting the Power of Zero approach to retirement, this means taking advantage of historically low tax rates while they’re allowed every year.
Mentioned in this episode:
Interview between Maya MacGuineas and Mitt Romney