Medicare's monstrous appetite

dallasnews.com ^ | Oct. 14, 2007 | Scott Burns Columns 2007

[givemELL]

According to economist Alicia Munnell, retiree out-of-pocket expenditures to cover premiums, deductibles and co-pays for parts B and D of Medicare will gobble 29 percent of the average Social Security benefit check this year.

Indeed, the unfunded liabilities of Medicare are six to seven times the unfunded liabilities of Social Security. One new part of Medicare alone, the prescription drug plan signed into law in 2003, has unfunded liabilities nearly twice as large as the unfunded liabilities of the entire Social Security retirement program.

[givemELL]

All government healthcare programs require more than anyone can afford. All freedom and treasure may be forfeited electively to accept equal misery for all. Just another government 'black hole'? Article does offer a suggested solution....A Voucher Plan...any comments?

[Abcdefg]

Screw socialism.

[JerseyHighlander]

“Used to the conditions of a capitalistic environment, the average American takes it for granted that every year business makes something new and better accessible to him. Looking backward upon the years of his own life, he realizes that many implements that were totally unknown in the days of his youth and many others which at that time could be enjoyed only by a small minority are now standard equipment of almost every household. He is fully confident that this trend will prevail also in the future. He simply calls it the American way of life and does not give serious thought to the question of what made this continuous improvement in the supply of material goods possible.”
Page 7 (or 8) - Economic Freedom and Interventionism
Ludwig Von Mises

From what I heard from a roundtable discussion tonight, the US system will NOT be able to inflate it’s way out of this problem. Cuts will have to be made. If the coming recession isn’t over by the campaigning for the 2010 midterms, we could see serious pushes for radical reform by desperate sectors of the US electorate.

The party is over. (For now)

[Leisler]

I don’t see any real cuts being made. Symbolic ones will be, maybe. I just see erosion. Fraying. Cost passing. It will be like Italy, or Cuba or Russia. You’ll have to bribe, pay cash.

At one time our government was a decision making instrument. Now it is an decision avoiding instrument. It’s not all the way, that way, but mostly so.

[rbg81]

One new part of Medicare alone, the prescription drug plan signed into law in 2003, has unfunded liabilities nearly twice as large as the unfunded liabilities of the entire Social Security retirement program.

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Bush was so wise to push this fiasco. He created an expensive new entitlement which, sadly, garned him zero political captial with the seniors he sought to help (let alone with the American people). As soon as it was passed, AARP and its minions grumbled that “it wasn’t enough” and the Dems agreed wholeheartedly. Well done, George, well done.

[givemELL]

Recession/depression will not be over by 2010. The Alt A mortgage peaks in 2011 and will be bigger than current problem. Here is a link with details with numbers and charts:http://iamfacingforeclosure.com/article/20071029_mktupdate/01.html

Here are three of the greatest links for daily bank, subprime, hedge fund, currency problems: www.nychousingbubble.blogspot.com www.ml-implode.com www.hf-implode.com

The dollar is even being dumped in the Maldives: http://www.bloomberg.com/apps/news?pid=20601039&sid=ahcvx7iJ4tXM&refer=home

[ken21]

bump for read later.

[Blood of Tyrants]

But, but, it’s FREEEEEEEE!!!!!!!

[JerseyHighlander]

Thanks for the links.

All I can add is I heard another 150,000 workers in the finance side of the real estate industry will be laid off by New Years. By the time the financial institutions start rehiring, entry level positions will require 4 or 5 years experience.

[qam1]

Xer Ping

Ping list for the discussion of the politics and social (and sometimes nostalgic) aspects that directly effects Generation Reagan / Generation-X (Those born from 1965-1981) including all the spending previous generations are doing that Gen-X and Y will end up paying for.

Freep mail me to be added or dropped. See my home page for details and previous articles.  

[givemELL]

Alt-A mortgage crisis will not peak until 2011, and it is going to be bigger than subprime. By that time we will have undergone more shocks. Here is one link with statistics and charts relative to the 2011 crisis...http://iamfacingforeclosure.com/article/20071029_mktupdate/01.html

[givemELL]

I do not have the link handy, but one source says the financial sector including real-estate, construction, peripherals to the housing, bank, hedge-fund, etc. categories will have lost a million jobs by the end of the year. BLS always corrects its incorrect figures at a much later date on newspaper back pages.

[tiki]

I don’t know because I wasn’t paying as much attention back then but I think they really screwed the pooch when they put everyone on the Social Security roles back in 1986. They got a huge influx of cash but now everyone is on the roles.

I was thinking of this because my father was military and then government and never paid 40 quarters into SS but he had good insurance and a pension. I know that was government but it used to be that the self-employed didn’t have to pay and teachers and people here with green cards and a lot of other people. They pay now but they do/will also collect.

[businessprofessor]

Almost everyone was put into social security. Many state and local government workers have opted out. Why was this choice not available to the rest of us? A good number of state and local government workers (especially teachers) receive social security even though they have not paid much in social security taxes. In addition, many state and local government workers do not have to pay their part of the Medicare tax. Their tax is used to purchase early retirement health care benefits. State and local government workers are a class unto themselves.

[GOPJ]

Thanks for the ping.