Entitlements dwarf bailout
The National Center for Policy Analysis has a new report on funding issues with Social Security and Medicare. Jacob Sullum looked over it and doesn't paint a bright picture:
The report's authors, economists Andrew Rettenmaier and Thomas Saving, estimate that paying Social Security and Medicare benefits to current workers will cost $52 billion. If these programs were funded by investments, they say, the government would have to set aside $102 trillion ("about 7 times the size of the U.S. economy") to keep the programs solvent. Assuming the government continues to use current tax revenue to pay for Social Security and Medicare, the two programs will consume one-tenth of the federal budget by 2012, almost half by 2030, and 80 percent by 2070.These two programs are cause for serious concern and it is irresponsible of our leaders, Republicans and Democrats, to keep avoiding the issue. But like Sullum says, there is no political will to take it up and we'll pay the price in the long run.Rettenmaier and Saving concede that their preferred solution—reforming Social Security and Medicare "so that each worker saves and invests funds for his own post-retirement pension and health care benefits"—would impose a "substantial" burden on current workers, who would have to "sav[e] for their own benefits while at the same time paying taxes to fund the benefits of current retirees." But the alternatives—a crushing tax burden and/or dramatic benefit cuts—are even less appealing. Except if you're a politician whose main concern is getting re-elected in two, four, or six years. Too bad there's no other kind.
Comments
Again it is all about personal responsibility ....BUT the government with its arrogance and stupidity on the economy have made it all but impossible for the average citizen and I am talking about those who hold legal citizenship to plan,save and execute a workable plan to save for their own future.
We have a government that is out of control and will not change its ways of stupidity and waste until the citizens see the food from their table going to feed the do nothings in Washington.
When are we going to demand Washington,Atlanta and in my case McDonough stop the wasteful,non essential spending habits they are so fond of?
I think a recall is legal and although it would take a lot of effort on the part of a lot of people it is a solution that should be explored.
When a district is betrayed by those who represent them FIRE THEM by way of a recall and send someone who will represent the interest of that district.
And the saga continues..
Don
Posted by: Don | December 3, 2008 10:44 PM
Don this is very true sir.
The people who hold the purse strings need to be held accountable for their actions when they are in control of taxpayer money.
If they do not handle the money of the citizens wisely and are found incompetent then a recall would be in order. It is the right of the people to have the best leadership in our best interest. I understand people are not perfect but when they do things that are done deliberately against the trust of the people then the people have the choice to ask for something better.
Keep up the good work my friend.
The Doctor
Posted by: The Doctor | December 4, 2008 12:07 AM
Hey Doc
You know after reading this entry again I am even more angry and not so much at the government but at my self for allowing the government to do to me and my family what I have allowed.
I have been voting since I was 18 years old ...my first vote was for Richard M Nixon in the Kennedy/Nixon presidential election... and I was the only one in my family to register and vote as a Republican.... fortunately the rest of my family over the years educated themselves on issues and are now registered as Republicans... Now you understand that does not mean a stamp of approval on the direction the Republican Party has taken and been on for the past 20 years... This party has failed us as badly as the Democraps
have and I fear will in the coming congress,,,,
All that said it is my,your and every other registered voter in America that has allowed the government to rob and rape us.. It is our fault... How can we put a child in a candy store without supervision and accountability and expect them not to gorge themselves on every piece of candy they can get their hands on?
Then when we look in the window and see them,cheeks bulging with the candy that WE made available to them we send in another child to tell them to stop again another child with out the proper restraints why are we surprised when the new child succumbs to the same temptations.
WE THE PEOPLE have given the politicians of our country the KEYs to the candy store and now they have locked the door from the inside...
I apologize to the all the politicians I have bashed for your greed,stupidity and inability to think and do what is expected of you... You are only doing what any spoiled child who has no fear of being punished would do.
We have allowed children access to our candy store and expected them to act responsible and with wisdom.
Much as a child who has never experienced discipline why are we surprised that you have locked the door on all but your friends who have the same mentality.
The only way we are going to be able to get the keys to to candy store away from those who cannot sate their sweet tooth by their own character and wisdom is for us to throw a brick through the plate glass window and enter forcibly.
And yes I realize there not only could be collateral damage there will be collateral damage but sometimes we have to damage that which is good and innocent in order to repair that which is bad and evil.
I am now of the opinion that politicians will always act as a child in the candy store and each time we THREATEN throwing a brick thru the door they say OK OK I won't eat anymore candy and we believe Why ? I believe we are afraid to discipline our own "children" because of the fear what they may do while in their sugar induced coma.
And Doc I have no problem on imperfect people as a matter of fact I could give lessons on how to be imperfect.... BUT I have no tolerance for those who say they have my best interest at heart then do that which I know is not in my best interest. And before anyone takes issue... I do not need a politician to think for me . It is their not only job but their sworn duty to represent me and my ideals not theirs... If an elected politician wants their position supported they should not accept the responsibility to represent my view if we differ...
Much as the politicians voting for the "bailouts" even though all the polls showed that 84% of the voters were in opposition to it,we are now enslaved by a mentality of "you let us do your thinking because we know better than you what you need".
I honestly believe Washingston Atlanta and McDonough need to reevaluate themselves and what their responsibility to the citizens who they are SUPPOSED to serve is.
It is the elected politicians who are sworn to serve those who elect them not be served BY those who elect them.
I don't know what all it takes to start a recall petition but I can guarantee that in the near future I will.
Don
Posted by: Don | December 4, 2008 08:52 AM
so much to write that this post stimulated a blog post in response...
http://underthenameofreason.blogspot.com/2008/12/we-arent-going-to-do-something-between.html
on the issue of the "crisis" we face with these programs.
Posted by: Jim Nichols | December 4, 2008 10:56 AM
The answer to funding shortfall with entitlements is not adding more entitlements.
You can't raise taxes because it risks economic growth and you cannot put off the bills coming due years down the road.
Europe has had so many economic problem because of the welfare state and excessive taxation to fund it.
You're essentially asking for more problems.
Posted by: Jason | December 4, 2008 11:38 AM
"Europe has had so many economic problem because of the welfare state and excessive taxation to fund it." Then why do they have longer life spans and higher quality of life? We were hit with the global economic crisis just as hard--if not more--than they have been. So you're not possibly arguing our economy is stronger are you?
"You're essentially asking for more problems." Actually I was responding to the myth of the crisis.
I didn't say we should raise taxes necessarily nor i'm I completely closed off to privitization efforts.
I was pointing out the "sky is falling" is not true and is more ideologically driven.
These are manageable prob