Meet the Greedy Grandparents

Slate ^ | Dec. 10, 2003 | Steve Chapman

[luckydevi]

When Social Security was founded, offering a federal pension at age 65, most of the people born 65 years earlier couldn't take advantage of it. They were dead. For the lucky ones who lived long enough to collect, the new pension system, founded in 1935, was meant as a modest support in the brief span before they passed on to glory. No more. Since then, life expectancy at birth in America has increased to more than 77 years. For the majority of people, that means lots of time being supported by the government. A working life is now just a tedious interregnum between two long periods of comfortable dependence.

America's elderly have never had it so good. They enjoy better health than any previous generation of old people, high incomes and ample assets, access to a host of medical treatments that not only keep them alive but let them enjoy their extra years, and a riotous multitude of ways to spoil their grandchildren. Still they are not content. From gratefully accepting a basic level of assistance back in the early decades of Social Security, America's elderly have come to expect everything their durable little hearts desire.

They often get their way, as they did recently when years of complaints finally induced Congress and the president to agree to bear much of the cost of their prescription drugs. From the tenor of the debate, you would think these medications were a terrible burden inflicted by an uncaring fate. In fact, past generations of old people didn't have to make room in their budgets for pharmaceuticals because there weren't many to buy. If you suffered from high cholesterol, chronic heartburn, or depression, you were left to primitive remedies, or none. Today, there are pills and potions for just about any complaint—except the chronic complaint that many of them are pricey. It's not enough to be blessed with medical miracles. Modern seniors also want them cheap, if not free.

That's on top of everything else they get. Retirement benefits used to be just one of the federal government's many maternal functions. But in recent years, the federal government has begun to look like an appendage of Social Security. In 2000, 35 percent of all federal spending dollars went to Social Security and Medicare. By 2040, barring an increase in total federal outlays, they'll account for more than 60 percent of the budget. And that's before you add in the prescription drug benefit. Most of the projected growth is due to rising health-care costs, not to the aging of the population, according to the Congressional Budget Office. Retirees eyeing this bounty feel no pangs of guilt, thanks to their unshakable conviction that they earned every dime by sweat and toil. In fact, economists Laurence Kotlikoff and Jagadeesh Gokhale say that a typical man reaching age 65 today will get a net windfall of more than $70,000 over his remaining years. A luckless 25-year-old, by contrast, can count on paying $322,000 more in payroll taxes than he will ever get back in benefits.

Why do we keep indulging the grizzled ones? The most obvious reason is that they are so tireless and well-organized in demanding alms. No politician ever lost an election because he was too generous to little old ladies. A lot of people are suckered by the image of financially strapped seniors, even though the poverty rate among those 65 and over has been lower than that for the population as a whole since 1974. But it's not just the interests of old coots that are being served here. Young and middle-aged adults tend to look kindly upon lavish federal generosity to Grandma because it means she won't be hitting them up for help. Paying taxes may be onerous, but it's nothing compared to the cost, financial and otherwise, of adding a mother-in-law suite to the house. Working-age folks also assume that whatever they bestow upon today's seniors will be likewise bestowed on them, and in the not too distant future. It's not really fair to blame the greatest generation for this extravagance. They are guilty, but they have an accomplice.

It's surely no coincidence that the new drug benefit is being enacted just as the first baby boomers are nearing retirement age. Nor can it be forgotten that the organization formerly known as the American Association of Retired People—it's now just AARP—has lately broadened its membership to include all the boomers it can get its wrinkled hands on. AARP, to the surprise of many, endorsed the plan. And what a surprise it is that the prescription drug program, which will cost some $400 billion over the next 10 years, could balloon to $2 trillion in the 10 years following that—when guess-who will be collecting. You would expect taxpayers in their peak earning years to recoil in horror from a program that will vastly increase Washington's fiscal obligations for decades to come. In fact, they—make that we—can see that the time to lock in a prosperous old age is now, before twentysomethings know what's hit them.

Boomers have gotten our way every since we arrived in this world, and the onset of gray hair, bifocals, and arthritis is not going to moderate our unswerving self-indulgence. We are the same people, after all, who forced the lowering of the drinking age when we were young, so we could drink, and forced it back up when we got older, so our kids couldn't. On top of that, we're used to the best of everything, and plenty of it. We weren't dubbed the Me Generation because we neglect our own needs, Junior. If politicians think the current geezers are greedy, they ain't seen nothin' yet.

But responsible middle-aged sorts may yet be brought to their senses when they realize that their usual impulse to get all they can will sooner or later collide with another boomer obsession: the insatiable desire to furnish our kids with every advantage known to humanity. Load Social Security with more obligations than it can bear, and our precious offspring will be squashed under the weight. To fund all the obligations of the Social Security system, payroll taxes will have to more than double by 2040—on top of whatever it costs to buy all those prescription drugs. At that point, our children will realize the trick we've pulled and start to hate our guts. That would be a cruel blow to a generation that thinks of itself as the most wonderful parents in history.

To avoid that fate, boomers need to recognize the need to stop writing checks that today's youngsters will have to cash. With the eager help of our own parents, we've created an entitlement that is fast becoming unaffordable. To bring Social Security into conformity with reality, we'll have to resign ourselves to a higher retirement age reflecting our prospective vigor and life expectancy. We'll have to accept more stringent controls on Medicare spending and take more responsibility for our own medical needs. We'll have to abandon our assumption that the point of the health-care system is to keep each of us alive forever. At some point—don't worry, not anytime soon—we will have to embrace a duty to stop functioning as a fiscal burden on our children and start serving as a nutritional resource for worms.

[Maria S]

"I think what the boomers don't get about abortion is that it is the ultimate expression of how they view all other human beings - as objects to manipulate or destroy at their pleasure. And that only scratches the surface of the culture of child abuse that is now epidemic - miseducation, drugging active children into submission, the sexualization of children, ignoring the magnitude and seriousness of molestation, and on and on."

I expect to hear shortly that you will be running for Congress, and after winning, you will make sure that abortion has been declared illegal (which will THRILL me beyond words...I hate it!), allow school vouchers so kids CAN get a decent education, introduce uniforms into the school system so all of the 'sexy' crap kids wear now will stop, and strengthen the judicial system so our current batch of liberal judges can be thrown out. You don't like the way things are going...do something about it!

[Glenn]

You miss the point that the politicians who were running the government were voted in by the generations that preceded mine

Then you have no point.

Social Security has been increased (more than twice), split out from Medicare, the ceiling increased and the age of retirement upped by two years since I first paid into it when I was16.

Will they finally do the right thing and invest the money? No. Will YOU do anything about it? Probably not. You'll roll with whatever legislation they clobber you with just as all generations have.

[Maria S]

"Parents that spoil their kids deserve spoiled cry babies."

You are right...and you are "Honoring thy parents".

[RC30]

Can't you guys just get along :-) Seriously, I think you both are taking the sterotyping way way too far. While my parents I think were pretty good, it seems that a lot in the BB generation were "free love" hippy types. It seems to me the wtc11 probably was not part of this group (or grew out of it quick enough). So wtc11 you have to realize that while technically being a BB you dont fit the sterotypical BB that thoughtomator refers too. And Thoughtomator has to realize that not all BBs fit the description of his parents (even though perhaps a majority of them do ;-)).

Thoughtomator, I dont want to be blamed for Clinton. Yet 30 years from now, I probably will be anyways. With some of the stuff that the supreme court is doing now, I dont want to be blamed for that either.

[Cacique]

bttfl

[JoeSixPack1]

This whole thread is amusing as a all get out. Gen X hating BB's isn't even a new idea. They stole it!!

Remember back in the 60's when we 'lived' the phrase - "don't trust anyone over 30"? All the same words on this thread.

ROFLMAO!! Bring back drive-ins!!!

[Aquinasfan]

America's elderly have never had it so good. They enjoy better health than any previous generation of old people, high incomes and ample assets, access to a host of medical treatments that not only keep them alive but let them enjoy their extra years, and a riotous multitude of ways to spoil their grandchildren. Still they are not content.

That's my mother-in-law to a T. She's been sitting on her butt for 20 years watching soap operas, going to the casinos and pissing and moaning. She's got plenty of money, but my wife and I thought we'd do her a favor and let her live with us. Big mistake. It's been seven years, but she's finally moving out in a week or two. Merry Christmas to us!

Her main complaints:
My wife makes her take her shoes off in the house.
The heat is too low.
She has to sort her recyclables.

Really. I'm not kidding.

Grandpa Simpson said it best: "I'm old. Gimme!"

[kittymyrib]

The Day-Care Generation is not all that bonded to their parents. They learned to survive pretty much on their own with not all that much emotional attachment to anyone, since all they saw was a long succession of minimum-wage "providers" from an early age. All those chickens will come home to roose when they also decide that they have to be "practical," just like their parents were when they needed them as babies and toddlers.

[genefromjersey]

Glad you enjoyed it !

[walden]

No, you remember correctly-- that's the self-employment tax, and you pay the whole thing. However, since the tax law change, if you pay yourself dividends rather than salary, I think that you only pay income tax on 50% of that amount and no self-employment tax on it at all. That option wasn't available until recently, but now, it's definitely the way to go.

I do think you need to set it up as either a regular corporation or a Sub-S for that to work, though. Can't just use the regular 1040 with the sole proprietor form.

[Aquinasfan]

We opened our home to our mother and all she does is take.

LOL! See my post above.

[thoughtomator]

I agree that there are millions of BBs who are good and honorable people. Unfortunately they are badly outnumbered by BBs who aren't, and when talking about a generation as a whole the majority characteristics dominate.

*frustrated rant alert*
So to clear the air a bit, let me state forthrightly that I do appreciate the BBs who moderated the majority behavior enough so that we have not reached the point where the ritual sodomy and further mutilation of freshly-killed fetal corpses forcibly aborted from criminals who dare to swear allegiance to God and not the State - like Christians and Jews - is broadcast in prime time on all major networks in celebration of Homosexmas in the UN World Government building on Sunset Boulevard.
*endrant*

[buwaya]

Its not really a Ponzi scheme - its just a normal European social insurance system, of the sort invented by Otto von Bismarck, with some chrome and styling to make it look like an investment fund. This was needed to make the sale originally. It should have been stripped off long ago to simplify the issue.

All the money has always gone into the black box of government finance. No investment there. Just part of the money-supply balance.

The real problem is not the fiddly financial aspects of it but the basic economic one (economics really isn't about money) of too few workers supporting too many non-workers.

The Europeans are 10-20 years ahead of the US in facing this, as their populations are older and their fertility rate is lower, as is their immigration/assimilation rate.

So far, no disaster over there, but definitely problems with stagnation.

[Maria S]

"Bring back drive-ins!!!"

The Big Guy and I go BACK to the local (re-opened) drive-in on hot summer nights!!! Yeee-haw!

[Aquinasfan]

The Big Guy and I go BACK to the local (re-opened) drive-in on hot summer nights!!! Yeee-haw!

Remind me not to park the minivan behind you. ;-)

[freedumb2003]

So you are painting the Baby Boom with Liberalism?

That's what this forum is about. Lots of us grew up, lots of them didn't. The previous generation before the BB was responsible for the creation of Communism and Socialism. Are you saying they are all Commmunists and Socialists?

You can't win that particular argument since all you have to do is grab the bad examples. The Baby Boom also was responsible for an end to racial barriers and inroducing concepts of justice for all, not just a select few. The problem is after the battle was won too many of soldiers liked the power it gave them. We are fighting that monster now.

And there are more Boomers involved in the WOT than Gen-Xers. The WOT is not seen as "belonging" to Gen X (in fact most soldiers are Gen-Y).

And Gen-X did NOT invent the Information Age. I have been part of that my entire adult life. Gen-x just hopped on to the train the baby Boom created.

Your assertion that the great artists from the Boom were from the precious generation is patently false. As much as I like the music from the 40's it has not passed the test of time like the music of the 60s and 70s (except disco).

Just give up. You can't win this argument. Accept the fact that yours is a lost, shallow and slacker generation and try to do what you can to make things better so if and when you all grow up you don't have to apologize for it.

[freedumb2003]

Thanks for the advice.

Yes, it needs to be run by the legal beagles, but the concept is great.

Good idea - everyone on the site should think about it.

[Atlas Sneezed]

They are totally rigid and totally uninterested in opposing points of view. In our modern complex world, fundamentalism is dangerous because of its rigidity and its imperviousness to other ideas.

---

There are no hard and fast regulations. The salary must be "reasonable." But it is an excellent way to reduce the burden of SS taxes.

[freedumb2003]

Remind me not to park the minivan behind you. ;-)

Minivans and trucks are ALWAYS in the back row! And hopefully the movie won't disturb ya! ;)

I really miss drive-ins.

[walden]

I disagree-- many countries in Europe have persistent unemployment rates around 10%. That's pretty bad. And, it's an indicator that the tax burden of hiring additional employees just isn't economic.