Pence: Social Security, Medicare Reforms Needed for Long Haul

Former Vice President Mike Pence argued Wednesday that reforms are needed on Social Security and Medicare, even though GOP leaders such as House Speaker Kevin McCarthy, R-Calif., say they do not want cuts in the two federal programs.

"I respect the speaker's commitment to take Social Security and Medicare off the table for the debt ceiling negotiations [but] we've got to put them on the table in the long term," Pence said on CNBC's "Squawk Box." "We’re looking at a debt crisis in this country over the next 25 years that is driven by entitlements, and nobody in Washington, D.C., wants to talk about it."

There are some House Republicans who have said the programs should be considered as part of a deal to raise the federal borrowing limit, while others oppose any cuts.

President Joe Biden, in his State of the Union address, pushed back at Republicans who he said are seeking cuts. Leaders from both parties are insisting they will not touch the entitlement programs.

Pence said that while he's glad to see Republicans in the House majority saying the debt ceiling process must be used to start the nation back toward financial discipline, "we all know where the real issue is in terms of long-term debt" and that Americans must be shown that deficits won't stop at $32 trillion.

"When you look at the deficits that are projected over the next 30 years, with Social Security and Medicare and other areas, it's about $120 million," Pence said. "I just had two granddaughters in two days. Our family is incredibly blessed. Looking down at those little girls, I think of their 30th year, when we could have $150 trillion in debt in this country if we wait to deal with it."

Entitlement reforms weren't pursued during the Trump administration, Pence acknowledged. But, he said that when he was in the White House with former President Donald Trump, the first objective was to get the economy moving again after the Obama presidency.

"When we came into office, we had just gone through the slowest economic recovery since the Great Depression," he said. "Our first objective was to get the economy moving again, cutting back taxes, rolling back inflation. It all worked. We negotiated the largest trade deal in American history in the U.S./Mexico/Canada agreement."

But then, he said, "history showed up in the form of COVID. I want to stipulate I don't think we did nearly enough. The next president of the United States has to square with the American people and take decisive and visionary steps."

According to the Social Security Administration, the Social Security Trust Fund is expected to be depleted by 2034 or 2035, reports The Daily Caller.

At that time, payouts to retirees will drop by 20%, unless Congress takes legislative actions. Economists have agreed that Congress could make up the difference by combining increases to the payroll tax while cutting other benefits.

Trump had argued that Congress can cut deficits by removing "waste, fraud, and abuse" from federally funded programs, but while heading the Republican Study Committee, Pence pushed to create private retirement accounts that Americans could pay into rather than the Social Security.

Pence meanwhile on Wednesday was noncommittal about his future plans, including a 2024 presidential race, telling CNBC that "I'll keep you posted," but still, he said he'd prefer a Republican alternative to Trump.

"I think we’re going to have better choices" than Trump, Pence said, but he did not rule out supporting Trump if he wins the GOP nomination.

But Pence, after serving under Trump for four years and angering him when he refused to block or delay the congressional certification of the Electoral College results on Jan. 6, 2021, said he believes that 2022 midterm candidates who were "focused on the past" and relitigating the 2020 election did not do well when they should have.

However, he said nobody except Trump could have defeated Democrat nominee Hillary Clinton in 2016.

"I endorsed [Sen.] Ted Cruz in the Indiana primary, but Republican voters were right," said Pence, adding that he hears GOP voters say they want to get back to policies that succeeded in Trump's era but are also seeking "more civility."

"I think freedom of speech, a rousing debate in the Congress is all good," Pence said. "But at the end of the day, what we need in this country is leadership … we've got to have leadership for these cultural issues, parental rights, respect for life. These are all things the American people need leadership on."