Matthew Yglesias, a prominent political commentator, recently sparked discussion on social media by asserting that the U.S. social safety net is "massively overweight" in its allocation of resources to "old people" compared to "kids and their caretakers." His tweet, posted on July 23, 2025, argued that while transferring resources from working-age individuals to non-workers makes sense, the current distribution disproportionately favors the elderly.
"A social safety net that transfers resources from working-age people to non-workers makes sense, but within the category of non-workers we are massively overweight on 'old people' relative to 'kids and their caretakers'," Yglesias stated in the tweet.
Statistical data supports Yglesias's observation, revealing a significant imbalance in public spending. The United States allocates considerably more per capita to the elderly than to children; some analyses indicate the federal government spends as much as $6 or $7 for every $1 spent on a child. For instance, in 2019, the federal government spent an estimated $29,189 per elderly American on entitlement programs alone, compared to $5,595 per child under 18.
Economists and researchers frequently highlight the high social returns on investment in children, particularly through early childhood programs. Studies suggest that every dollar invested in quality early childhood development can yield returns of $4 to $9, or even more, through improved health, education, and productivity in adulthood. Such investments are also linked to reduced future costs in areas like criminal justice, healthcare, and other social services, contributing to long-term economic growth and reduced inequality.
Despite the compelling arguments for increased investment in younger populations, reallocating social safety net funds presents significant political and structural challenges. Major programs like Social Security and Medicare, which primarily benefit the elderly, are structured as entitlements with built-in growth mechanisms. These programs have been crucial in reducing poverty among seniors, but their automatic growth can crowd out other budgetary priorities, including those for children.
The debate underscores a critical policy dilemma: balancing the needs of an aging population with the long-term societal benefits of investing in the next generation. While the social safety net for the elderly and disabled has strengthened over the past half-century, programs for children often face greater budgetary constraints. Future policy decisions will need to navigate these complexities to ensure a balanced and sustainable social safety net that serves all age groups effectively.