The Matt Walsh Show - October 07, 2026


Ep. 1852 - This Is The Greatest Scam In American History. It's Time To End It.

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Ep. 1851 - The Loneliness Epidemic Is Real. AI Is Making It Much Worse. Ep. 1853 - Shocking Body Cam Footage Reveals How Bad Public Schools Are Now

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Transcript

Transcript generated with Whisper (turbo).
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00:00:27.920 When a Ph.D. student was investigating the state gambling industry in West Virginia, he made a pretty remarkable discovery.
00:00:37.840 A grand total of 43 million bets were placed by just 16,000 gamblers using a single casino app in a span of one month.
00:00:47.700 So a very small number of people are responsible for a staggering amount of betting.
00:00:52.040 And interestingly enough, these bets spiked on specific days.
00:00:55.440 every second, third, and fourth Wednesday of the month.
00:00:59.440 Now, why might that be?
00:01:01.420 I mean, you wouldn't expect Wednesdays
00:01:02.980 to be a particularly big day for betting
00:01:04.940 or for anything else.
00:01:06.500 But consistently, week after week,
00:01:08.360 that's what the researcher observed.
00:01:09.960 And then after doing a little digging,
00:01:11.700 he realized what was going on.
00:01:13.960 Wednesdays are when social security payments go out.
00:01:17.100 Retirees were getting checks in the mail
00:01:18.860 and immediately putting the money into slot machines
00:01:22.200 without even waiting a day.
00:01:24.400 So they're just lighting the money on fire, essentially, and this is money that we desperately need as a country.
00:01:29.920 Social Security is the single biggest line item in the federal budget and a major driver of our national debt,
00:01:36.160 and we're distributing this money to millions of people who, in many cases, clearly don't need it.
00:01:42.460 This is the kind of waste that, in any other context, would justifiably attract a lot of attention. 0.93
00:01:47.200 When we learned that Somali daycare owners were buying luxury SUVs with our tax money,
00:01:51.780 the vice president launched a fraud task force. The feds raided the leering centers.
00:01:57.800 It was a national scandal as well. It should be. But the news that Social Security checks are
00:02:03.540 fueling the gambling industry in states like West Virginia, one of the poorest states in the country,
00:02:08.440 has been totally ignored. No one's even pretending to care about the implications.
00:02:14.060 Now, if your response is, well, these people paid into Social Security so they can spend the money
00:02:18.200 however they want. Well, then you're missing two very important points. First of all, no,
00:02:25.040 these people did not pay into anything. They paid a tax to the government, which then immediately
00:02:31.840 spent their money. The payouts they're receiving in the form of regular checks are coming from
00:02:37.280 working taxpayers, many of whom need the money to survive, not to blow it on gambling. And secondly,
00:02:42.700 on a related note, Social Security is unsustainable. The system depends on an ever-creasing
00:02:48.380 number of workers who have to fund this Ponzi scheme with their tax payments for an increasingly 0.65
00:02:55.020 elderly population. And yes, Social Security is quite literally a Ponzi scheme. A Ponzi scheme
00:03:01.060 is a fraudulent investment plan where older investors are paid out from money collected
00:03:07.260 from newer or more recent investors. And, you know, this is exactly how Social Security works.
00:03:14.740 But there's a problem. Well, many problems, but this is a big one. Fertility rates in this country
00:03:20.100 have plummeted. We don't have enough workers paying taxes, and therefore the Social Security
00:03:24.840 Trust Fund is set to run out in the fourth quarter of 2032. And once the reserve is exhausted, only
00:03:31.180 around 78% of scheduled benefits would be provided. And if the government tries to solve the problem
00:03:36.860 by printing money. It will cause inflation, which will ultimately cause social security
00:03:40.780 distributions to rise even further since the benefits are adjusted based on the cost of
00:03:44.740 living. In other words, whether you want to cut social security benefits or not,
00:03:49.480 something has to give at some point. Sacrifices will have to be made. There's
00:03:54.840 no getting around it. The only question is who is making the sacrifice and in what form and when?
00:04:02.620 According to a recent survey from the Cato Institute that's getting a lot of attention today, a large majority of boomers have decided on their preferred solution.
00:04:13.780 They know who should make the sacrifice. And the answer is their children and their grandchildren.
00:04:19.480 Listen to this, quote, an overwhelming 89% of Americans over the age of 65 said Social Security benefits should be protected at current levels, even if it means higher taxes on younger workers.
00:04:33.980 And it's not only Americans age 65 plus who prefer the solution. Roughly 84% of those aged 55 to 64 preferred higher taxes on younger Americans, while 74% between the ages of 45 and 54 agreed with it as well.
00:04:49.580 In other words, the closer Americans get to retirement, the more likely they are to favor protecting today's benefits at the expense of younger workers who will end up paying higher taxes to keep it afloat.
00:05:00.360 So that's the plan. They're going to steal from young families to pay the boomers who have 0.85
00:05:08.580 dramatically more assets. The average boomer net worth is more than 10 times higher than the 0.88
00:05:16.140 average net worth of somebody under the age of 35. The median boomer household net worth
00:05:20.360 is roughly $430,000, while the median net worth of entire households under the age of 35
00:05:25.560 is around $39,000. Every single year, individual Social Security recipients are receiving around
00:05:32.700 $20,000 on average, which is more than half of the household net worth for 35-year-olds. 0.97
00:05:40.680 And this is a very important point, so I'll repeat it. We are taking huge amounts of money
00:05:44.840 from young families and giving it to older people who, on average, are 10 times wealthier.
00:05:52.220 Now, of course, that's an average.
00:05:53.320 There are plenty of elderly grandmothers who are poor or struggling, and there are some
00:05:57.600 35-year-olds who are wealthy, but at a population level, the numbers are what they are.
00:06:03.980 To have an overwhelming majority of people in the older, richer group calling for tax
00:06:08.580 hikes on the younger, poorer group is just despicable, frankly.
00:06:14.980 It's pure selfishness. 0.95
00:06:17.100 Young families already have to deal with an economy where everything is exponentially more expensive than it was for boomers at the same age.
00:06:24.500 Older people clamoring to raise taxes on the young on top of it all is just perverse. 0.59
00:06:32.220 It's the exact opposite of how these things are supposed to work. 0.97
00:06:34.960 now personally i would agree to a plan to say phase out social security over the next 25 years
00:06:44.160 even knowing that if we put that plan in place right now it would mean that the system will end
00:06:49.680 right at the moment when i would start drawing a check the system is broken it's not working
00:06:56.700 it's headed for the edge of a very tall cliff something has to be done for the sake of future
00:07:01.700 generations. Again, sacrifices do have to be made by someone at some point. There's no way around
00:07:09.280 it. And I would rather make the sacrifice myself than force my kids to make it. I would take the
00:07:15.300 loss if it meant that my kids and grandchildren aren't subjected to this scam for their entire
00:07:19.700 lives. I just can't for the life of me understand or relate to the older people who don't feel that
00:07:25.680 way and wouldn't be willing to make the sacrifice for the sake of their descendants. It's a totally 1.00
00:07:31.260 foreign mentality to me. I find it baffling. Setting my kids up for the future is one of the
00:07:37.180 only things I care about anymore. I understand that for a lot of people, it can be a legitimate
00:07:43.000 challenge to save for retirement on top of raising a family. But if the choice is between securing
00:07:47.440 your own retirement and ensuring that your children have the chance to live in a stable 0.87
00:07:50.840 country that isn't owned by China, how is that a choice at all? How would you decide when you've 0.93
00:07:58.180 considered all your options, that the appropriate solution is to raise taxes even further on young
00:08:04.120 people, including your own kids. Wouldn't you do everything in your power to make their lives
00:08:09.020 easier if you had the opportunity to do so? Or maybe I should ask it this way.
00:08:12.700 If you had to choose between making your life harder or your children's lives harder,
00:08:20.240 is it not extremely easy to choose the former?
00:08:24.200 already social security by itself is an enormous burden on young people to a degree that most
00:08:30.400 people don't understand uh unless they're in this position right now so so let's break this down
00:08:36.860 okay if you're a young person making say 40 grand a year which is a little bit under the
00:08:41.080 average for someone who's 30 and not college educated so a lot of people that are you know
00:08:45.920 around this age are in this boat uh so if you you know this is if this is what you're making
00:08:50.160 you currently pay around 15.3% for the Federal Insurance Contributions Act tax or FICA. And that
00:08:57.620 breaks down to 12.4% for Social Security and 2.9% for Medicare. So in total, you're out $6,120 per
00:09:06.620 year for FICA taxes. The employee's personal contribution for Social Security is half of the
00:09:11.900 total. His employer, if he has one, covers the rest. So that means every year, the employee with
00:09:18.120 a $40,000 salary is paying $2,480 per year towards Social Security. That's basically a month's pay
00:09:30.340 after taxes. It's a huge amount of money. Okay, this is not a small thing for a lot of young
00:09:36.680 people. This is a major financial hardship for young families. It's potentially the difference
00:09:42.920 between being able to afford a house or not, the difference between being able to pay off your
00:09:48.440 credit card debt or not, the difference between getting a necessary car repair or not. Social
00:09:55.180 security is an incredibly significant financial burden for young working families. And all to
00:10:03.760 prop up a system that almost certainly won't be there, at least in its current form, when they're
00:10:08.600 older. And all to send checks to retirees who, on average, are much wealthier than they are and who,
00:10:14.520 and this is important, are receiving much, much more from Social Security than they, quote,
00:10:19.360 paid into it. On average, boomers will get paid more than double what they put in. And that's
00:10:24.760 including inflation and interest. In raw dollars, they're getting four to seven times what they put
00:10:29.160 in. And the cost for young families, again, is real ongoing financial distress.
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00:11:04.780 You know, I can remember what that was like personally.
00:11:09.560 Social security is no skin off my nose at this point in my life,
00:11:12.200 but I remember very well being at an income level
00:11:14.080 where being able to opt out would have been legitimately life-changing.
00:11:21.340 And on top of that, the social security tax caps out
00:11:23.840 after you've earned around $184,000.
00:11:26.720 So high earners, people making hundreds of thousands of dollars a year or more,
00:11:31.660 get to dodge social security tax on a significant percentage of their income. Meanwhile, we're
00:11:36.640 making people earning 40 grand a year pay around 6% from every paycheck. It's an insane system.
00:11:43.760 You know, it's not fair. And the thing is, everybody knows it. When I made this argument
00:11:49.840 on X, as you'd expect, I got a lot of replies like this one. This is from a guy who, and I know it
00:11:55.120 sounds cliche, but I'm not making this up, has golf clubs in his profile picture and the words
00:12:00.200 real estate in his X handle. Here's what he says. F you. They made us pay into that system for this
00:12:07.560 guarantee of retirement pay. I would have rather invested the money in the stock market and I'd be
00:12:12.380 much better off. Well, there are a few problems here. First of all, nobody stopped you from
00:12:19.360 investing in the stock market. If you never did that at any point in your life, that's on you.
00:12:26.480 If we're going to lecture younger people to pull themselves up by their bootstraps and take responsibility for their own choices, fine.
00:12:34.160 But then the same tough love mentality should certainly be applied to adults twice their age.
00:12:40.580 So if you're sitting here saying, oh, I didn't invest in the stock market for my entire life.
00:12:45.340 Well, you could have.
00:12:48.120 Whose choice was that?
00:12:50.800 I mean, how's it any different from a young person who's complaining that, oh, I have terrible student loans.
00:12:55.660 and most older people, especially if they're Republicans, will look at the younger people
00:13:00.320 and say, well, you know, sorry, that was your choice. And I agree with them, by the way.
00:13:05.460 Like, you know, sorry, I know it's tough, but you took that debt out and that's on you.
00:13:13.000 I mean, if we're willing to say that to young people who made a choice when they were like 18
00:13:17.600 to take on, you know, what would choose, what would turn out to be a really bad investment
00:13:23.880 of a college education for most of them,
00:13:26.960 if we're willing to look at them and say,
00:13:28.280 well, you know, sorry, tough luck.
00:13:33.200 Then what's wrong with saying that
00:13:34.900 to someone who's 67 years old?
00:13:37.420 A grown-ass adult who's saying,
00:13:39.760 well, but I never invested any money.
00:13:43.520 Maybe you should have.
00:13:45.900 That's exactly what you would say 0.98
00:13:47.320 to someone half your age and do say. 0.78
00:13:49.840 What's the difference?
00:13:50.460 second if you admit that it's a crappy system then you should want nothing more than to fix it
00:13:57.360 for the sake of your descendants but instead it you know it sounds like you want to get whatever
00:14:02.680 you can out of it and leave your grandchildren holding the bag and meanwhile your generation
00:14:07.060 spent decades voting exclusively for politicians who would prop up the very quote system that
00:14:11.940 you're now complaining about again where does personal responsibility factor in here
00:14:17.360 there was also this response which was less vulgar but still outlandish in its own way and
00:14:22.780 i'm reading this because it's fairly representative of the kinds of feedback you get anytime you try
00:14:27.420 to talk about solving the social security problem anytime you try to even broach the subject you get
00:14:34.280 hissy fits you get temper tantrums from grown people that's what you get and that's what this
00:14:40.800 is usually i agree with you and i'm a staunch republican but if you take away my social security
00:14:45.880 I'm a Democrat for the first time in my life. I spent my entire life planning for retirement with
00:14:51.440 Social Security, a major part of it, and paid into the systems as a young person so the older
00:14:55.300 generation could have some support. I'll make a deal with you, pay me back every penny I put into
00:14:59.380 it and every penny my employers put into it on my behalf at 5% interest, and you can take away
00:15:04.360 the monthly checks. Okay, so he's willing to make a deal as long as the deal involves paying him all
00:15:09.500 of his benefits. This is the extent to which many older people are willing to offer concessions of 0.68
00:15:13.320 Social Security. They'll make a deal as long as the deal involves giving them everything they want 0.79
00:15:17.240 up front and making sure they have to sacrifice not one single dime. Even while 89% of them are
00:15:23.600 saying, absolutely, I think younger people should have to sacrifice their money. It's just a morally 0.99
00:15:30.300 abhorrent position. I'm sorry, it just is. And if they don't get what they want, as you just heard,
00:15:35.740 they'll vote for communists who want to burn down the country that their grandchildren will have to
00:15:40.100 inherit? Who are you punishing? You're going to punish your own descendants? You're going to
00:15:47.360 elect terrorists who plan to open the borders, release all the criminals, and destroy the United
00:15:51.280 States as we know it? Solely to protect your retirement? This is childish and petulant and
00:15:59.380 outrageously selfish. Demanding that the government steal from young people the way it stole from you. 0.97
00:16:05.180 I mean, admitting that it's theft. Well, they took from me. So they got to take from these kids.
00:16:13.240 Threatening to destroy everything if they don't do that is such an abhorrent position that I'm
00:16:17.400 surprised people aren't too embarrassed to say it publicly, but this is a common sentiment.
00:16:24.700 You know, according to this guy, he spent his entire life planning for retirement with Social
00:16:27.640 Security as a major part of it. And to be fair, you know, there are probably many people in that
00:16:32.020 boat. I get it. This is where I go back to the younger people who have college debt. Yeah,
00:16:38.700 you're in a tough spot. I get it. That was a mistake, though. You should not have planned
00:16:43.140 your whole retirement around a government program. That was a mistake. You shouldn't
00:16:47.560 have done that. It was a very foolish decision. There was never any guarantee that Social Security 1.00
00:16:54.760 would remain solvent for any significant period of time. Everyone knew it was a government program
00:16:59.500 administered by incompetent government bureaucrats. And no matter how much you paid into the system,
00:17:06.040 you were never allowed to log into any account and see your balance. That should have been your
00:17:10.680 first clue. Okay. That was your big clue that in fact, you had not paid into anything. Your money
00:17:16.760 was gone. And the moment you realized that you should have started planning for your retirement
00:17:21.280 on your own without depending in any way on social security. And before you start ranting
00:17:25.920 that it's unfair. I agree. But this is exactly the position that young people today are in.
00:17:32.480 They are having their money taken from them for a system that they know probably won't be there
00:17:38.060 for them. And that if you're an older person, you also know, you damn well know that this probably
00:17:43.500 won't be here for the younger people. But you're not going to be around when that happens.
00:17:49.700 And so younger people, they know that they have to plan for their retirement separately.
00:17:55.920 How can you expect young people to do that for themselves while at the same time getting angry when younger people ask you why you didn't do that for yourself?
00:18:03.120 And if you did do that for yourself, well, then again, why should younger people be forced to finance a retirement that you already financed?
00:18:12.160 Now, yes, it's wrong for the government to steal your money and give you an IOU in return, which is basically what Social Security is, but that's what happened.
00:18:20.140 That's what happened.
00:18:21.500 And if you pretended otherwise, then you made a very serious mistake.
00:18:26.800 The question is, who should have to pay for that mistake?
00:18:30.780 Should a young worker making 40 grand a year have to pay for it, for your mistake?
00:18:36.380 And when you consider that collectively, the older generation spent many decades voting exclusively for politicians who would prop up this failing system,
00:18:44.680 it becomes hard to see them as a victim of it.
00:18:47.540 You could have fixed the problem, or at least tried to fix it, but you didn't.
00:18:53.160 You didn't even try.
00:18:54.160 I mean, in fact, like for decades, if any politician has even mentioned a word about making any changes to the system, you screamed at them and voted them out of office or threatened to.
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00:20:40.860 Listen up. There are enough people listening to this show right now that if they don't vote,
00:20:45.000 it could swing key states in the 2026 election to the Democrats. And everyone listening knows
00:20:49.860 every single ultra far left Democrat socialist will be showing up to vote this fall. Democrats
00:20:55.800 are fired up and we can't let them win because if we lose, they'll undo everything our movement
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00:21:30.300 committee. You know, as a practical political matter, I'll concede that it's extremely unlikely,
00:21:37.680 verging on impossible, that either party is ever going to reform Social Security, much less end it,
00:21:42.660 which is what needs to happen. And it's not going to happen. I know that. This is a political dead
00:21:48.920 end for exactly the reason that this guy states. There's a substantial number of people who will
00:21:53.480 vote against any political party that touches Social Security in any way. We're not just
00:21:57.180 talking about ending it, like any attempt to reform it at all, to make it, you know,
00:22:02.660 potentially solvent or to make it so that it will still be around maybe decades from now,
00:22:08.120 any attempt to do that is met with fury, right? Retirees become like BLM. Like it's like, 0.99
00:22:16.960 we're going to, we're going to, we're going to just, we're just going to burn everything down.
00:22:20.000 And even if we're hurting our own kids, we're going to do it.
00:22:25.980 You know, when George W. Bush tried to privatize the system, it was a political disaster that was shot down within 60 days.
00:22:31.800 But his proposal was highly sensible and actually pretty moderate, all things considered.
00:22:38.280 He didn't want to shut down Social Security altogether at all.
00:22:41.720 what Bush wanted to do was allow younger workers to divert 4% of their payroll taxes from Social
00:22:48.600 Security and into an individual personal account that they controlled. And the personal account
00:22:53.200 would work like a 401k. You could choose from a limited number of investments, mostly tracking
00:22:57.040 the total stock market. In exchange, the workers' guaranteed Social Security benefits, which are
00:23:01.520 invested in Treasury securities with a much smaller return, would be reduced proportionally.
00:23:05.380 And meanwhile, the government would have to borrow around $2 trillion over 10 years to make up for
00:23:10.040 the shortfall of money going into Social Security through normal contributions. That seemed, you
00:23:14.800 know, shockingly high to people at the time, but now we routinely run deficits of that size every
00:23:19.000 single year. Assuming the stock market account grew at a rate of inflation, you know, plus 3%,
00:23:24.020 workers would benefit from this new system. And otherwise, if the markets underperformed, it would
00:23:29.220 cost them money in retirement. So here's how he tried to sell the plan to the public all the way
00:23:34.220 back over 20 years ago. Listen.
00:23:36.880 The government has made a commitment
00:23:38.200 and you have made your plans.
00:23:41.320 These promises will
00:23:42.320 be honored. George Bush's
00:23:44.420 plan strengthens Social Security.
00:23:46.780 It guarantees everyone at
00:23:48.300 or near retirement every dollar of their
00:23:50.300 benefits, no cuts in Social
00:23:52.280 Security. And the Bush plan
00:23:54.200 gives younger workers the choice to put
00:23:56.240 a small part of their Social Security
00:23:57.980 in sound investments they control
00:23:59.960 for higher return.
00:24:01.860 This generation will save Social Security. 0.54
00:24:06.260 Now, that was right before Hurricane Katrina hit, which distracted everyone and killed the proposal for good. 0.94
00:24:12.360 But there was no chance it was going to succeed anyway.
00:24:14.820 The unions and the AARP opposed it, mainly because their members didn't understand how the stock market worked.
00:24:21.140 And Bush's poll numbers began to tank as Democrats convinced seniors that they lose all their money.
00:24:26.180 So the program never even made it to a congressional vote.
00:24:28.940 this is one of the reasons everyone talks about oh we need real solutions like it's one of the
00:24:32.900 reasons why real solutions don't happen because on the rare occasion where anyone in a position
00:24:37.460 of power actually proposes something that might be some kind of solution might have some kind of
00:24:42.780 uh you know effect on a on a major problem like they get they get screamed out of the room
00:24:49.260 that's what happens and uh bush shifted his focus to hurricane katrina and no one talked about the
00:24:57.040 proposal ever again. And that's too bad because it's very clear that workers would have much more
00:25:00.940 money for retirement today if this proposal had passed. And crucially, that's money that they
00:25:05.880 would actually own. Imagine a worker in his 20s making 40 grand a year who began participating
00:25:11.480 in Bush's program when it became available in 2005, if it ever did. The market crashed in 2008
00:25:16.700 and then it recovered a few years later and went on a 15-year bull run. With Social Security alone,
00:25:22.040 he'd get a check for around $2,500 a month when he retires. Under Bush's system, his monthly Social
00:25:26.180 security check would be reduced to around $2,000 a month, but he'd have something like $300,000
00:25:31.260 in a personal retirement account that he controls. That's a massively better position to be in. It's
00:25:38.360 a better system. We could have had that system. But the mass of voters at the time, including
00:25:45.780 especially older people, retired people, didn't want it, wouldn't have it, wouldn't even consider
00:25:50.240 it. And if you were in that position, you could safely withdraw 4% from the retirement account
00:25:56.380 every year, which more than makes up the difference in Social Security payments. And the kicker is
00:26:00.200 that when he dies, he can pass that money to his family. It's generational wealth. On the other
00:26:05.660 hand, when you die, all of the money you supposedly paid in to Social Security is gone forever.
00:26:11.400 Your spouse can collect your benefit until they die, but after that, no one will ever get that
00:26:15.960 money. It's just gone. It's just gone because it's already gone, because you never actually
00:26:21.200 paid into anything in the first place. And again, Bush's plan was very modest. You could only put
00:26:28.000 4% in a private account and only with certain restrictions. If people were simply allowed
00:26:31.920 to put all of their social security tax, including employer match, into a retirement account,
00:26:36.620 which is obviously what the system should be, starting at age 18 and retiring at 65,
00:26:41.500 then they'd retire with around $3 million based on historical market returns.
00:26:46.820 Pretty much everybody with a job would be a millionaire. It's astonishing to think about,
00:26:50.940 but it's true. These better ideas and better systems were available and had been proposed
00:26:58.280 before Bush and since, but boomers nearly unanimously opposed all of them, which is why,
00:27:05.380 again, it's a little hard to stomach the claim that they were scammed by the system and now we
00:27:10.360 have to keep it intact so they get paid out because, you know, fair is fair. Yeah, they were
00:27:13.920 scammed, sure, but for the most part, they categorically opposed any effort at all to fix
00:27:21.480 the scam. Bush's doomed Social Security reform was merely a last-ditch effort to fix a problem
00:27:27.540 that boomers and the predecessors created over a period of many years. This is something, you know, 0.98
00:27:33.240 people don't talk about anymore, but it's important to go into some detail here so that you fully
00:27:37.260 understand how older generations have sabotaged the economic prospects of young people in this
00:27:42.260 country and why they did it. This is not, I know when we talk about this, it was, oh,
00:27:45.660 it's generational warfare. It's not generational warfare. It's just history. Okay. This is what
00:27:51.980 actually happened. And when you see that, you'll see why it's necessary to take decisive action
00:27:57.020 to reverse the damage that they've done. But we can't do that unless we're willing to talk about
00:28:01.820 the damage was. And I'm sorry if that's, you know, if, if that's going to be offensive to
00:28:05.100 some people, but that's just, that's just it. I'm sorry. Some really, really terrible decisions
00:28:09.000 were made. Um, and in fact, these were decisions that were made by, um, you know, not made by
00:28:15.280 young people today. They weren't around for it. Um, man, a lot of young people are making their
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00:30:54.160 Okay, so in the 1960s, at the height of the civil rights movement, LBJ's Great Society and, quote,
00:30:58.900 War on Poverty created massive entitlement programs, including Medicare and Medicaid,
00:31:03.480 which provided health care to the elderly and the poor, respectively. The SNAP or Food Stamp
00:31:06.860 Program was also created, along with the Department of Housing and Urban Development, which funneled
00:31:11.240 billions of dollars towards public housing, rental assistance, vouchers, and so on.
00:31:15.960 Then there was the massive expansion of the public sector, where the government went out of its way
00:31:19.380 to create jobs for black workers, from the Postal Service, to the DMV, to the transit system,
00:31:24.040 to those random, unmarked government office buildings where you wonder what anyone does
00:31:29.360 there. The answer is they don't do anything. All of this was on top of Social Security,
00:31:32.920 which was created decades earlier. Now, none of this happened. We would not have
00:31:37.820 any national debt today. We'd have a massive government surplus. We would have saved trillions
00:31:45.260 of dollars every few years going back decades. And on top of that, we wouldn't have had to make
00:31:50.500 any interest payments on our debt, which have compounded for so long that these interest
00:31:54.140 payments now exceed our annual defense budget. What does this mean in practice? Well, with a
00:31:58.660 massive national surplus, we could have eliminated or reduced income and payroll taxes for most
00:32:04.800 Americans. We could have done that. We could have no income tax. We could have issued an annual
00:32:09.120 dividend to everyone to make it easier to buy a home or start a business. We could have invested
00:32:12.940 in our own country to an unprecedented degree. But in the name of civil rights and attempting 0.54
00:32:16.860 to integrate black Americans with the rest of society and the interests of waging a quote-unquote
00:32:23.000 war on poverty, LBJ and the Democrats created all of these massive programs. And here's the key
00:32:28.580 point. When the opposition party, quote unquote, took over, instead of scaling these programs back
00:32:36.060 or finding some way to pay for them, namely by raising taxes, if you're going to keep them and
00:32:40.820 pay for them, that's the only way to do it, they kept everything intact. Ronald Reagan won landslide
00:32:46.260 victories by promising tax cuts without any meaningful reduction in government spending on
00:32:50.180 all of these welfare programs. He explicitly promised to keep the social safety net for the
00:32:55.800 elderly, and the boomers were thrilled. They got more money in their paychecks, and in the immediate 0.95
00:32:59.260 aftermath, all of the major economic indicators turned positive for a time. This was Reagan in
00:33:05.700 1985 taking a very premature victory lap. Listen. In 1981, our critics charged that letting you keep
00:33:14.260 more of your earnings would trigger an inflationary explosion, send interest rates soaring, and destroy
00:33:21.020 our economy. Well, we cut your tax rates anyway by nearly 25%. And what that helped trigger was
00:33:28.680 falling inflation, falling interest rates, and the strongest economic expansion in 30 years.
00:33:35.560 Now, what Reagan doesn't mention here is that by 1985, federal receipts had dropped to 17.2%
00:33:42.640 of GDP compared to 19% in 1981. So the government was taking in much less money
00:33:46.980 relative to the size of the economy.
00:33:49.440 And meanwhile, federal spending was going up,
00:33:51.740 creating a very large deficit of 5% of GDP.
00:33:54.360 So our economy was expanding it.
00:33:56.020 The federal government was still running a huge deficit.
00:33:58.600 The budget was not remotely balanced.
00:34:00.400 And then just one year later,
00:34:01.620 Reagan poured gas on the fire,
00:34:03.360 signing an amnesty bill that granted a pathway
00:34:05.480 to legal status for millions of illegal aliens.
00:34:08.000 He claimed it would ultimately reduce illegal migration,
00:34:10.600 but of course it accomplished the exact opposite result. 0.53
00:34:13.740 Foreigners realized the US government 0.93
00:34:15.160 would reward them for invading our country that, you know, we didn't have the willpower to deport 1.00
00:34:19.640 them. So in just a few years, low-income Mexicans took over large portions of California, which as 1.00
00:34:23.760 a result, will never again elect a Republican like Ronald Reagan. In addition to permanently 0.97
00:34:29.900 changing the landscape of American politics, this demographic transformation put millions more
00:34:36.480 people on our welfare rolls and the deficit continued to grow. Ronald Reagan would then
00:34:41.900 become, of course, deified by future generations of Republicans and disgust among conservatives
00:34:47.420 with the same reverence we have for George Washington, even though the fact is he helped 0.89
00:34:51.860 to bankrupt the country and he kick-started the illegal immigration crisis that has destroyed 0.95
00:34:56.460 countless lives. As Christopher Caldwell writes in his book, The Age of Entitlement, quote, 1.00
00:35:02.160 from an actuarial and from a human capital perspective, the quarter century after Ronald
00:35:06.360 Reagan's election should have been the easiest time to balance the budget in the history of the
00:35:10.100 public. The entirety of the vast baby boom generation, making up 38% of the population, 0.95
00:35:14.760 was in its productive years. There were relatively few retirees and dependent children to tend to.
00:35:19.000 The country was, until the Iraq war after 2003, at peace. It set the rules for the global economy,
00:35:24.400 but since baby boomers were due to leave the workforce between 2010 and 2030,
00:35:28.240 big obligations for Social Security and Medicare loomed. These would go unmet. Instead of meeting
00:35:34.240 those obligations, the boomers and Reagan Republicans chose the path of least resistance.
00:35:38.500 Quote, the borrowing power of the baby boom generation was invested in avoiding the choices that the confrontations of the 1960s had placed before the country.
00:35:47.620 We should understand the great society as the institutional form into which the civil rights impulse hardened. 0.79
00:35:52.800 They transfer from whites to blacks of the resources necessary to make desegregation viable. 0.84
00:35:57.040 Desegregation was the most massive undertaking of any kind in the history of the United States. 0.99
00:36:01.080 Like any massive undertaking, it required endurance, patience, and prohibitive expense.
00:36:05.340 Almost everyone who did not benefit from it was going to be made poor by it.
00:36:09.060 The best evidence we have is that it was too much for most Americans from the beginning.
00:36:13.560 The rhetoric that brought Reagan to landslides was, among other things, a sign that Americans were unwilling to bankroll with their taxes the civil rights and welfare revolution of the 1960s and the social change it brought in its train.
00:36:26.540 So the boomers simply enacted tax cuts without cutting entitlements and government spending. 0.61
00:36:31.700 The tax cuts, Caldwell writes, provided a golden parachute for the white middle class, 0.81
00:36:35.960 allowing it for one diluted generation to recreate with private resources a Potemkin version of the old order. 0.88
00:36:44.560 Now what? 0.53
00:36:45.480 Well, people who weren't even born when these decisions were being made now have to pay for those decisions.
00:36:52.240 This is generational theft at scale.
00:36:54.780 quote by 1989 the year reagan left office according to an estimate by the economist
00:37:00.080 roy h webb of the federal reserve bank of richmond the government's unfunded liabilities
00:37:04.760 mostly for social security medicare and veterans benefits had reached four point four to four to
00:37:09.840 five i should say trillion dollars and would rise exponentially if nothing were done nothing was
00:37:15.400 done by the time of the 2016 election a calculation of those liabilities similar to webb's ran to at
00:37:21.500 least $135 trillion. Ten years later, some estimates peg those liabilities at over $200
00:37:29.680 trillion. And while no politician wants to talk about a solution to this problem
00:37:35.440 because it would destroy their political future, I'm not running for office.
00:37:42.120 So here's the truth. A lot of the online boomer hate is cliched and undeserved. Hating or
00:37:49.180 scapegoating an entire generation is a ridiculous practice and certainly unhelpful. There are plenty 0.92
00:37:53.520 of boomers who are great people. My parents are boomers. They're great people. But that doesn't
00:37:56.600 change the fact that taking huge chunks out of the paychecks of young working Americans
00:38:02.180 in order to pay for the retirements of older Americans who have a net worth several times
00:38:08.120 higher and who elected the politicians who bankrupted the country, all to prop up a system 0.58
00:38:14.520 that everyone knows likely won't be there when those younger people are retirement age themselves
00:38:18.880 is morally abhorrent and economically insane. Everyone knows it. But we're held hostage by
00:38:27.100 elderly politicians who refuse to surrender power and older voters who, as a group with
00:38:33.040 exceptions, obviously, simply don't care enough about the financial and cultural future their
00:38:38.940 grandchildren will inherit. And here's the other truth that I mentioned before, but I'm going to
00:38:42.820 reiterate. On average, boomers are getting paid more from Social Security than they ever, quote,
00:38:47.440 paid into it a lot more, like double. And that's counting inflation and interest. In particular,
00:38:52.620 low earners and couples with only one breadwinner receive benefits that are many times greater
00:38:56.640 than their contributions via taxes. And raw dollars, they'll get, again, four to seven times
00:39:02.260 what they paid in. And if they're married with spouses who never worked a day in their lives or
00:39:06.440 paid any payroll taxes at all, those spouses are getting up to 50% of the benefit as well.
00:39:11.020 And all the while, younger workers who cannot afford to keep this system afloat are being
00:39:16.900 forced to do so anyway, even as they struggle to afford what should be the basic features of life
00:39:21.320 in the most powerful country in the world. Features like a house and a little bit of a
00:39:24.480 property, you know, and a car. So we have a problem, a massive problem. Something has to be
00:39:31.140 done. We have to start somewhere. And here's one compromise that would at least stave off
00:39:37.140 insolvency and save billions. What if you get back what you paid in, quote unquote, but no more?
00:39:45.580 young, struggling families will not be forced to finance a 250% return on your, quote, investment.
00:39:54.780 And that seems reasonable, doesn't it? I mean, it doesn't go nearly as far as I would like,
00:39:58.820 but it's a compromise, a fair compromise. It negates any claim that you didn't get the money
00:40:03.560 back that you, quote, unquote, paid in. And it would resolve the most pressing problem,
00:40:07.820 which is that we are running out of money, not just for Social Security, but for everything.
00:40:12.220 and yet i suspect that this compromise will not be satisfactory why is that well because this
00:40:21.000 debate actually has nothing to do with getting back what you paid in the real demand is for a
00:40:27.760 lot more than that as that poll from cato demonstrates the real demand for many older
00:40:32.700 on average wealthier americans is to extract as many resources as they can even if those resources
00:40:39.800 come from young people who cannot afford to pay anymore. What's so insidious about entitlements
00:40:47.680 is that no one ever, under any circumstances, wants to give them up. Ever. And Social Security
00:40:55.700 is no exception. But at the risk of disappointing the folks who have made casinos very happy on
00:41:02.120 Wednesdays, the unavoidable fact is that sooner or later, this particular entitlement will come
00:41:08.340 to an end. Will. It has to. The only choice now is whether it ends in financial disaster for the
00:41:14.480 entire country or in a deliberate phased wind-down that gives your children the same opportunity you
00:41:20.920 had, which is the chance to save money, buy a home, and start a family that one day will do
00:41:26.200 the honorable thing and pass its wealth down to the next generation. That'll do it for the show
00:41:33.420 today. Thanks for watching. Thanks for listening. Talk to you tomorrow. Have a great day. Godspeed.
00:41:38.340 Every significant movement in history has started with protesting. 1.00
00:41:46.060 You're a traitor! 1.00
00:41:47.060 Uncle Tom! 1.00
00:41:48.060 This is our generation's civil rights!
00:41:49.220 I have no idea what the protest is about.
00:41:51.460 Bingo!
00:41:52.460 Given the current climate, we should have figured as polarizing as Clay Saunders can
00:41:56.220 even be allowed on campus.
00:41:57.220 Ah, can you hear me okay?
00:41:58.220 Saunders is a close personal friend of Chancellor Friedman.
00:42:01.140 This is a decision I cannot find. 1.00
00:42:02.740 Islam will conquer the West. 1.00
00:42:04.340 Assalamualaikum. 1.00
00:42:06.340 As-salamu alaykum.
00:42:09.340 Are we paying attention? 1.00
00:42:11.340 They've taken over the building, they're downstairs,
00:42:13.340 and they've blocked the doors.
00:42:16.340 I seek forgiveness from Allah the Almighty.
00:42:20.340 We cannot run and hide.
00:42:22.340 Mohammed is the messenger of God.
00:42:25.340 There is no God but Allah. 0.99
00:42:28.340 What do you say? 1.00
00:42:30.340 You turn those SOBs into a fine red mist. 1.00
00:42:34.340 As we move, one man will cover while the other guys go. 1.00
00:42:37.640 They call that LEAP project.
00:42:38.820 Stretch around and listen.
00:42:41.620 You need a course in safe weapons handling.