Congress May Finally Touch the ‘Third Rail.’ Inflation Will Hold Them Accountable, by Veronique de Rugy

Your representatives may finally grab the feared “third rail” of U.S. politics. When the Social Security and Medicare trust funds run out in the early 2030s, the law is clear: Benefits must be slashed. That would mean a roughly 24 percent cut to Social Security checks and an 11 percent cut to Medicare benefits. But Congress almost certainly won’t let that happen.

The easy, though irresponsible, political path may seem obvious: Change the law, keep benefits whole, and pay by borrowing the money. This way legislators won’t have to cast unpopular votes for spending cuts or tax hikes. This makes sense only if the consequences won’t become clear until much later, after voters have forgotten all about it. …

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