PROPOSES CUTS TO SOCIAL SECURITY AND MEDICARE
As any honest observer of the dire fiscal nature of U.S. budgets would conclude,
the driving section of deficit expenditures are entitlements. The two areas, based upon
predictable demographics, that scream out for rational and extensive surgery are Social
Security and Medicare. The Obama administration has a long record of gutting Medicare as
part of the Obama care malady that is transforming into a national plague as the detail
regulations unfold. For a summary of reporting on the subject, review the media accounts
on the Kaiser
Health News. One of such analysis, found in the New York Times item, Obama
Budget to Include Cuts to Programs in Hopes of Deal, identifies the smoke and mirrors
modifications, designed to push the Medicare medical reimbursement into insolvency.
"Mr. Obamas budget will propose a new inflation formula that would have the
effect of reducing cost-of-living payments for Social Security benefits, though with
financial protections for low-income and very old beneficiaries, administration officials
said. The idea, known as chained C.P.I., has infuriated some Democrats and advocacy groups
to Mr. Obamas left, and they have already mobilized in opposition.
Mr. Obama will propose other spending and tax credit initiatives, including aid for
states to make free prekindergarten education available nationwide a priority
outlined in his State of the Union address in February. He will propose to pay for it by
raising federal taxes on cigarettes and other tobacco products.
In Medicare, the savings would mostly come from payments to health care providers,
including hospitals and pharmaceutical companies, but Mr. Obama also proposes that
higher-income beneficiaries pay more for coverage."
The mere notion that the Obama administration is submitting a budget at all may be
news, but the devil is in the details, within the projected outline is expected. This
political kabuki theatre gives little solace to the actuary process that crunches the
numbers of an aging society.
acknowledgment out of the lack of a grand arrangement, cited by Money News in, Obama
Proposes Cuts to Social Security, Medicare, calls for reductions in the growth of
Social Security and other benefit programs.
"Administration officials have said Obama would only agree to the reductions in
benefit programs if they are accompanied by increases in revenue, a difficult demand given
the strong anti-tax sentiment of House Republicans."
The glaring omission from this, and any discussion on Social Security and Medicare, is
the need to revise eligibility and age admission criteria. The political psyche of the
public is stuck on the myth that an entitlement society can be funded on a systemic
shortfall of revenue. The perennial cry for just raising taxes on the rich is a fools
game and does harm by continually reinforcing the denial of inevitable reality, that
services and programs must be dramatically curtailed or eliminated.
Much of the partisan banter and face-off skirts this underlying issue. Feeding this
self-denial culture is an electorate and a population that has become comfortable
consuming their "so called" free lunch diet. The fact that the eating habits of
the majority attempt to digest the social programs off the government menu, without paying
for the cost of the meal is inescapable.
The longevity of recent age brackets has caused a fiscal crisis that has only one
outcome, namely, national bankruptcy without fundamental changes to such programs.
Impoverishment of the younger generations to fund a mathematically impossible obligation
is the key element missing from any rational discussion or debate.