Can We Talk About It Now?
Why can't we talk about Social Security, Medicare or Medicaid reform these days? Is it merely a partisan political issue, with both sides fighting over the position of champion of the people? Or is it a Holy Grail of socialism in the United States which, if proven a massive failure, might tear the whole "New Deal/Great Society" mentality of the Left down with it? What good is this political and economic time bomb to us if the Massive Entitlement, as I've come to know it, becomes insolvent? Will our leadership let it become insolvent?
These are questions that should've been answered when these programs were pitched, but the law of unintended consequences was written long before these programs were written into law. Their existence now, as a subsistence-level medical/retirement coverage for the poorest and even middle class has gone from a well-meaning, although horribly socialist salve to keep up the image of the "richest country in the world" to a boil, a pox on our economy and our social structure. When it bursts, will the U.S. economy hemorrhage out? Will the people who depended on it be the ones who suffer worst? Nothing good is going to come from that day, I guarantee it, and yet no one with any power to do anything is doing anything.
The media has gloated over the failure of Bush's attempt to "reform" Social Security, mostly I think out of a hatred for the President, but also I'm sure goaded by an inherent bias that such programs are fundamental and inalienable. They are, of course, not. His injection of fat into Medicare with the Prescription Drug Benefit has even been criticized by the Left as not being big enough. Ok, so Social Security reform is "not needed", as we hear whenever the issue is broached, and Medicare isn't "big enough". Then let's review the numbers and see if those sober anyone.
In the Tuesday 12/27 Indianapolis Star, the paper notes that Social Security, Medicare and Medicaid accounted for over $1 TRILLION of a $2.2 TRILLION budget. Did you get those numbers? That's almost half of the federal budget. This Prescription Drug Benefit is due to add an estimated $724 billion over 10 years, and bear in mind federal cost estimates are almost universally lower than reality. $100 billion a year spending might even be a conservative number. We aren't taking into account that the first of the Baby Boomer generation, one of the largest segments of our society, is just turning 60. In five years, they will be collecting Medicare and Social Security. When such a group adds its political muscle and demand into the mix, this economy will falter and then collapse under the weight of their needs.
What will be done then? Increase middle class taxes? Increase upper class taxes? Reduce benefits? We're not talking a few percentage points here. Again, those conservative federal estimates, back in the day when anyone was even bothering to do them, were saying middle class taxes of over 50%, let alone the "rich". Things like the EIC and other altruistic initiatives would have to be sacrificed. The military, "education" spending, and pork projects would be pleasant spending diversions of a by-gone era. Many of those would go to a well-deserved grave, but the country's ability to protect itself and the people's ability to live without oppressive taxation will be done-in by the needs of our geriatric oligarchy.
Like the person who smokes until cancer consumes all his lung tissue, we continue to believe that the problem will heal itself. We do this at our peril, and like that cancer victim, we will be eaten alive by our own folly.
Why can't we talk about Social Security, Medicare or Medicaid reform these days? Is it merely a partisan political issue, with both sides fighting over the position of champion of the people? Or is it a Holy Grail of socialism in the United States which, if proven a massive failure, might tear the whole "New Deal/Great Society" mentality of the Left down with it? What good is this political and economic time bomb to us if the Massive Entitlement, as I've come to know it, becomes insolvent? Will our leadership let it become insolvent?
These are questions that should've been answered when these programs were pitched, but the law of unintended consequences was written long before these programs were written into law. Their existence now, as a subsistence-level medical/retirement coverage for the poorest and even middle class has gone from a well-meaning, although horribly socialist salve to keep up the image of the "richest country in the world" to a boil, a pox on our economy and our social structure. When it bursts, will the U.S. economy hemorrhage out? Will the people who depended on it be the ones who suffer worst? Nothing good is going to come from that day, I guarantee it, and yet no one with any power to do anything is doing anything.
The media has gloated over the failure of Bush's attempt to "reform" Social Security, mostly I think out of a hatred for the President, but also I'm sure goaded by an inherent bias that such programs are fundamental and inalienable. They are, of course, not. His injection of fat into Medicare with the Prescription Drug Benefit has even been criticized by the Left as not being big enough. Ok, so Social Security reform is "not needed", as we hear whenever the issue is broached, and Medicare isn't "big enough". Then let's review the numbers and see if those sober anyone.
In the Tuesday 12/27 Indianapolis Star, the paper notes that Social Security, Medicare and Medicaid accounted for over $1 TRILLION of a $2.2 TRILLION budget. Did you get those numbers? That's almost half of the federal budget. This Prescription Drug Benefit is due to add an estimated $724 billion over 10 years, and bear in mind federal cost estimates are almost universally lower than reality. $100 billion a year spending might even be a conservative number. We aren't taking into account that the first of the Baby Boomer generation, one of the largest segments of our society, is just turning 60. In five years, they will be collecting Medicare and Social Security. When such a group adds its political muscle and demand into the mix, this economy will falter and then collapse under the weight of their needs.
What will be done then? Increase middle class taxes? Increase upper class taxes? Reduce benefits? We're not talking a few percentage points here. Again, those conservative federal estimates, back in the day when anyone was even bothering to do them, were saying middle class taxes of over 50%, let alone the "rich". Things like the EIC and other altruistic initiatives would have to be sacrificed. The military, "education" spending, and pork projects would be pleasant spending diversions of a by-gone era. Many of those would go to a well-deserved grave, but the country's ability to protect itself and the people's ability to live without oppressive taxation will be done-in by the needs of our geriatric oligarchy.
Like the person who smokes until cancer consumes all his lung tissue, we continue to believe that the problem will heal itself. We do this at our peril, and like that cancer victim, we will be eaten alive by our own folly.
posted by Rob Beck | 9:34 PM
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