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Blackbay Group Managing Principal Todd Schoenberger on the impact of entitlement spending on the government’s rising debt.
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He turned to look for.
Aren't.
It's.
Very -- available variables that we -- here if you catch my job ahead of your restaurant.
Remember that guy that don't touch my job guy he -- TSA agent to give his hands off his job.
How do you DO now that the senate has made it clear he won't even lay a finger on any of our -- jumped.
And treasured entitlements.
Todd someone -- decision.
-- because this well known stock watcher Theres no one's watching -- For us.
Doesn't -- good time.
-- -- get that right you know because first of -- Maybe just look at the simple numbers here are we as as Americans.
So only 75%.
-- actually receive Social Security benefits by 2036.
And that's saying nothing is getting done now we're obviously not talking about cuts we're not talking about anything -- the Democrats are so worried about the short term.
That they're forgetting about what's going to happen to -- generations down the road.
But you know what they -- if you think about it none of these are cuts that we're talking about -- -- the well known.
-- of the word they're just slowing it broke the softly so you take even addressing slowing the growth is a bit off the table.
What's left on the table.
There yet -- you got that right because you're just looking at simple baseline budgeting rules right now and hear right if you can eliminate that that would actually help.
As far as curbing some of the spending.
Going forward -- it's clear that something needs to be died and we're not talking about -- the Republicans do not talk about.
Current beneficiaries of Social Security were talking about generations later he added gen X years of the world that are out there.
The problem is is that you what she start talking about Social Security cuts.
And the Democrats are so worried about this price its retiree broad.
Clearly they'll want to do anything that's -- upset the apple cart even though we might be talking about something that will impact -- forty or fifty -- fifty years down the road.
But something needs to be done.
Now but we're not doing it now and I'm arguing -- Republicans are -- as well because they're putting off more at least after the election.
And it it tough decisions they went and signed on to this six month extension to keep the guess the government -- on.
But.
You know.
We're not make -- progress here.
Well listen there was a study that came out last year that provided to -- very simple math calculation.
-- take.
Slowly over the next twenty years with some cuts that take place -- twenty years for new beneficiaries.
That would actually close the gap the problem is this study came out -- 2010.
Neighbor to look at -- 2010 numbers now if you take the same math.
Clearly we're gonna have to raise the payroll tax are looking at extending that tax out many years.
And as a result nothing to be done because as you know -- at the longer you wait to solve a problem the worse the remedy is going to get.
And it's going to be quite costly for -- down the road the longer we wait.
What is on Wall Street gonna do longer -- I mean it seems have been blithely.
Ignoring his locker resolve like I cannot see that continuing.
What the economic policy planet -- Mitt Romney and Paul Ryan have actually talked about.
-- may be taking up portion of this -- Social Security accounts at putting them to work.
-- found inside -- stock market.
Now there's obviously an argument -- both sides of this but it would be nice to see as far as having beneficiaries actually have some skin in the game.
Maybe do something nothing high risk but something where they could yield a better return and that would help them.
They haven't talked a lot about it on the campaign only because it seems to be -- hot potato issue right now.
But -- Wall Street's looking at this set of Romney does win.
That is something that could occur later on a couple of years from now clearly -- Obama wins it's off the table of Democrats don't want anything to do what -- going forward.
But I think that would be great for the stock market traders are keeping a close eye on that's Todd thank you very much good seeing you again.
Likewise.
