🗓️ This Week in History
July 30th, 2024
On July 30th, 1965, U.S. President Lyndon B. Johnson signed the Social Security Act of 1965 into law, which established Medicare and Medicaid.
Before the act, healthcare for the elderly and low-income individuals was limited, often leaving these groups without adequate medical care. Rising healthcare costs and the lack of insurance for seniors and the poor were major concerns during the early 1960s increasing public and political pressure to address these issues. President John F. Kennedy had initiated discussions about healthcare reform, but it was under President Lyndon B. Johnson that significant action was taken. Introduced as part of Johnson's "Great Society" initiatives, the act faced considerable opposition from conservative lawmakers and the American Medical Association, which feared government interference in healthcare. Despite opposition, the act garnered strong support from Democrats and moderate Republicans. It was signed into law by President Johnson on July 30, 1965, during a ceremony at the Harry S. Truman Library, symbolizing the fulfillment of earlier efforts by Truman to pass national health insurance. Medicare and Medicaid have become essential components of the U.S. healthcare system and have undergone numerous changes and expansions to address evolving healthcare needs and challenges. That expansion has made them behemoths. Mandatory outlays by the federal government totaled $3.8 trillion in 2023 and more than half of that ($2.2 trillion) was for Social Security and Medicare.
Get ready to topple Medicare and Social Security from their perch at the top of the federal spending pyramid. Not because their costs will decline, please–they are government programs, after all, but because something is set to overtake them in the coming years. Now that we live in a higher interest rate world, interest payments on the national debt are projected to total around $66 trillion over the next 30 years and would become the largest "program" in the federal budget within that period — surpassing Medicare in 2046 and Social Security in 2049. The acceleration in debt spending is going to be a problem. But don’t take my word for it, take the US Government’s:
“The current fiscal path is unsustainable.” –Bureau of the Fiscal Service
“Perpetually rising debt would also increase the likelihood of a fiscal crisis and pose other risks to the U.S. economy.” –Congressional Budget Office
As election season drags on and takes some crazy turns, expect bipartisan cooperation to address this issue like they did in the 1960s to address healthcare. Just kidding. That kind of statesmanship seems to be a relic of the past.
The History Lessons Podcast is evolving! I hope you will continue to enjoy “This Week in History” for frequent updates. Stay tuned for interviews with history writers and makers when the rebooted podcast launches later this fall.