The Coming Collapse of the Welfare State
Mar. 4, 2014
In 1935, the year that FDR signed the Social Security Act into law, the birth rate was 18.7 per 1,000. In 1940, when the first monthly check was issued, it had gone up to 19.4. By 1954, when Disability had been added, the birth rate at the heart of the Baby Boom stood at 25.3.
In a nation of 163 million people, 4 million babies were being born each year.
By 1965, when Medicare was plugged in, the birth rate had fallen back to 19.4. For the first time in ten years fewer than 4 million babies had been born in a country of 195 million. Medicare had been added in the same year that saw the single biggest drop in birth rates since the Great Depression.
There could not have been a worse time for Medicare than the end of the Baby Boom.
Today in a nation of 314 million, 4.1 million babies are being born each year for a birth rate of 13.0 per 1,000. 40.7% of those births are to unmarried mothers meaning that it will be a long time, if ever, before those single families put back into the system, and most will never put back in as much as they are taking out. Those children will cost more to educate, be more likely to be involved in crime and less likely to succeed economically. But even if they weren’t, the system would still be unsustainable.