Millennials and Gen Z are demanding changes to outdated entitlement programs.
The Big Picture
The alarm bells might not be sounding yet, and that’s concerning in and of itself. Today, our national debt is over $35 trillion. If that isn’t enough to make you pause, consider a CNBC report that notes the U.S. national debt is rising by $1 trillion every 100 days.
Historically, public debt was used for emergencies. However, Michael Peterson of the Peter G. Peterson Foundation notes that we are now borrowing at unsustainable rates, not for emergencies or investments, but for immediate consumption.
To assume these borrowing habits won’t impact the nation's fiscal future is naive. Research presented at the Kansas City Federal Reserve’s annual conference suggests that U.S. Treasuries are no longer the “safe haven” they once were. Last August, Fitch Ratings downgraded the United States’ credit rating, citing expected fiscal deterioration and a growing debt burden.
Zooming In
The Real Fiscal Crisis: Social Security
This election cycle, candidates from both parties have accused each other of wanting to slash Social Security. In 2012, the progressive Agenda Project Action Fund ran an ad showing Paul Ryan pushing a grandma off a cliff to criticize GOP proposals.
This is why entitlement programs are labeled the “third rail” of American politics—any discussion of reform is met with political backlash. Donald Trump learned this firsthand in March when he suggested entitlement cuts before quickly backtracking due to voter outrage.
Where Does the Money Actually Go?
To understand why Social Security is at risk, we must examine government spending. Federal expenditures are split into two categories:
- Discretionary spending: Includes defense, foreign aid, and government salaries.
- Mandatory spending: Includes entitlement programs like Social Security and Medicare.
While many blame foreign aid or government waste for the national debt, the real issue is entitlement spending. Mandatory spending accounts for 60.5% of the federal budget.
The Looming Insolvency of Social Security
Social Security is projected to become insolvent by 2033, decades before most millennials will even be eligible for benefits.
Younger voters recognize that Social Security is unsustainable in its current form. A Newsweek poll found that 76% of millennials strongly agree that Social Security should be reformed.
Independent Lens
Republican or Democrat, it doesn’t matter—millennials want elected officials who are willing to face reality. Social Security and Medicare require urgent modernization, and younger generations won’t accept political gridlock as an excuse for inaction.
While previous generations viewed entitlement reform as untouchable, younger voters see it as a necessity. They want flexible options for retirement savings and solutions that reflect their financial realities.
The clock is ticking, and the time for meaningful discussions is now. If politicians continue to ignore this reality, younger generations will seek leadership willing to break from partisan stalemates to tackle these critical issues.
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