Wow! And 80% cut in federal spending? Something a libertarian can only fantasize about. If that happened, the greatest economic boom in American history would result. Just look at post-WWII. No one would go hungry. No one would go without decent medical care. Old people wouldn't get kicked out of their homes. Rather, with government out of the way and prosperity abounding, charity would be widespread, and less needed. One can only hope.
A senior now receiving $1,000 a month social security and having 90% of their medical bills paid would now get a check for $200 and only have 20% of their medical bills paid. The federal government has turned seniors into dependent clients of the government. The effect would of such cuts would force most seniors back to living with their children. Think about it. You are in your 50's, your kids are finally gone and suddenly up to four people suddenly move in. In our divorce ridden society the parents might not even be married anymore, or worse the now divorced parents might have to live in the same household with their ex spouses new spouse!
No, it will not be pretty.
The difficulty is the libertarian expectation that the current working generation will simultaneously support the current retirees while saving for their own retirement. Most people would not be able to do it. Factor in student debt, oil prices skyrocketing, and state government pension costs, (I read that Illinois that each household owes $50,000 in costs for this expense), and we are truly ******.
Sorry for making you think a bad word, but I could not think of a word strong enough to replace it.
I have been told I am pessimistic. Maybe. I have even said I am guardedly pessimistic, as I still hope we can limp our way through this.
I remember the pop song from the 80's, "Our Futures So Bright, I Gotta Wear Shades."
The song is actually a portrayal of a quite horrible future. I did not get the point of the song in the 80's. I do now.