Most political leaders pay lip service to pressing national or fiscal issues only to pass the buck to their successors. Clinging onto political life seems like a far better proposition than touching the “third rail” and getting zapped. French President Emmanuel Macron has bravely tacked in the opposite direction with an electrifying campaign to reform France’s pension system. Reuters’ Caroline Pailliez and Ingrid Melander report that Macron is under fire from protesters and political opponents for proposed reforms that would push France’s retirement age two years longer to 64. One million French workers have taken to the streets despite clear indications that the status-quo is not sustainable.
American policymakers would be wise to learn from Macron’s brave stand and embrace much-needed entitlement reforms. The U.S. has no long-term strategy for reducing trillion-dollar deficits and reining in the resulting inflation. Social Security, Medicare, and Medicaid will account for roughly 90% of new spending over the next 10 years, yet there’s little political will to make any changes to these programs. President Joe Biden and lawmakers should learn from the “chef d’État”and save the U.S. from fiscal calamity.
America’s largest entitlement programs have remained largely unchanged since the New Deal and Great Society. The Social Security Amendments of 1983 did implement a gradual increase in the Social Security (SS) retirement age (from 65 to 67), and individuals who turned 62 in 2022 now must wait another five years before getting full benefits. But, just as before, individuals can start taking SS benefits at age 62 as long as they are willing to collect less benefits leading up to the full retirement age.
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