How do problems with Social Security compare with other issues facing the United States?
A. Almost everyone agrees that the problem with Social Security pales in comparison with problems with Medicare and, in general, health care spending. Public health care expenditures are rising rapidly, and health care costs are rising rapidly. In the long run, Medicare spending will be growing from current levels of around 2 percent of the GDP to 8 or 9 percent of the GDP. That’s a massive increase. Social Security is going to be growing from around 4.4 percent of the GDP to 6.5 percent of the GDP. So, I would say the health care problem is probably three times as big as the pension problem. And there’s far less discussion because no one knows quite what to do about it. With Social Security, there are certain things you can do since it’s a finite problem that really is manageable. It’s not overwhelming.
