Blog Credo

The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.

H.L. Mencken

Monday, July 28, 2014

An Important Point

Medicare - the "most endangered" entitlement - is not going to run out of money.

For years, we've been hearing that Social Security and Medicare are going to go bankrupt, and invariably this never comes to pass.

Presumably both the Left and Right have a reason to point to the coming insolvency of entitlements.  On the Left, looming fiscal restraints would be a call for more revenue, especially by eliminating the cap on Social Security taxes.  On the Right, the discussion would be on the basic impossibility of the government doing anything right.

Most interesting is the Center Right, Sensible, Serious Person take on entitlement crises.  These are the voices for austerity - which ought to be in the running for Worst Economic Idea of All Time.  There argument is for "belt tightening" and is some ways indistinguishable from the Right's complaints about entitlements in general.

But it's important to note that they rig the numbers to make it look like a crisis is looming.  This seems to benefit everyone but those who want to feel secure in their future retirement.

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