Sounding not at all like a Washington politician, Vanguard Funds founder and former CEO John Bogle says the budget deficit problems associated with Social Security are actually pretty easy to solve.
"We need some minor adjustments you'd scarcely notice," such as indexing to prices rather than wages and increasing the retirement age to 70, Bogle tells CNBC.
"The Erksine/Bowles/Simpson commission had really a great set of recommendations to deal with budget deficits, and nobody pays a darn bit of attention."
|John Bogle (AP photo)
Medicare and Medicaid, Bogle acknowledges, will be more difficult to manage because health costs are high, but both political parties must work together to find the best solution possible.
Though he feels the market is “fairly expensive” right now, Bogle reiterated one of his favorite investing mantras: “Press on regardless” of how good or bad economic times are and the market appears.
“No one seems able to look at the long run,” says Bogle.
House Budget Committee Chairman Paul Ryan says the 2012 budget the GOP-controlled House plans to release Tuesday cuts more than the $4 trillion in spending over 10 years, exceeding the amount called for by President Barack Obama’s debt commission, and will address entitlements — something the president’s budget avoids.
Ryan also said the budget proposes Medicare reform, by offering plans “out there for you to choose from and then Medicare subsidizes that plan," while not changing the entitlement program for those 55 or older.
Ryan told Chris Wallace of Fox News that he's prepared for his plan to become a rallying cry for Democrats in the 2012 election.
"Yes, we are giving them a political weapon to go against us," Ryan said. "But they will have to lie and demagogue to make it a weapon. ... Shame on them,” he said.
“We can't keep kicking the can down the road."
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