Articles

According to the National Debt Clock in downtown Manhattan, the United States has piled up $18 trillion in Federal debt. That's about $56,000 per citizen. But former economics professor at Texas A&M, and Senator, Phil Gramm, says the number to pay attention to is what every taxpayer now owes -– more than $154,000 and climbing.

Recently, on The Costa Report, Gramm discussed the "underlying driving force" behind the U.S. debt crisis: modern entitlement programs. "We have promised things we cannot pay for," says Gramm. "These benefits will never be paid for because society is not capable of making the payments."

Gramm says one way to bring entitlement benefits in line with funding is to focus on standards for disability benefits.The number of citizens receiving Social Security disability payments has increased over 20% during the Obama administration. Gramm attributes the rise to poor standards and oversight.  According to the economist turned Senator, unions are among the biggest offenders. Gramm claims there are unions where 50% of the members qualify for, and currently receive, disability payments. He says a bipartisan committee to stop these abuses is needed.

As one-third of the country comes of retirement age in the next decade, the pressure to pay entitlement benefits will continue to grow. Gramm worries the problem will get "much, much worse." In addition to cracking down on disability abuse, Gramm says Social Security must be adjusted to "to more reflect the lives that people are living." He believes the age to qualify for Social Security must be raised, and benefits reduced. For Gramm, the guiding principle in solving the entitlement debt problem is to "raise the revenues we need, while influencing the economy the least."

To hear the full interview with Phil Gramm, visit www.thecostareport.com