Our national government is increasingly a transfer mechanism from younger workers (i.e. taxpayers) to older retirees. In fiscal 2004 Social Security ($488 billion), Medicare ($300 billion) and Medicaid ($176 billion) represented 42 percent of federal outlays. Excluding spending that doesn't go to the elderly, the Congressional Budget Office crudely estimates that these programs pay an average of almost $17,800 to each American 65 and over. By 2030 the number of elderly is projected to double; the costs will skyrocket.He misses a very important point, our local governments are increasingly a transfer mechanism from older workers (i.e. taxpayers) to younger non workers. In addition to supporting my two children for the first 20 plus years of their lives I am still supporting the younger non workers every time I pay my property taxes, a large portion of which goes to schools, parks and recreation and libraries. The rate I pay for health insurance is impacted by the children in the insurance pool. I'm sorry but I don't want to hear about a transfer of wealth from younger workers to older non workers. It's an argument that doesn't fly.
Friday, January 14, 2005
Now wait just a minute!!!!!!
Robert J. Samuelson has a post in the WAPO today, It's More Than Social Security, where he makes a few good points but the major emphasis of the commentary is faulty.