New Year, same problems. In America, as in many other developed nations, older members of society have been robbing the young. Not outwardly and blatantly, but in the way governments distribute benefits. Unfortunately, the needs of older people do not mesh with those of younger citizens and political power rests in the hands of those who are older. The problem in the U.S. is generated mainly by the social safety net. These pay out huge sums to older recipients, while a relatively small number of workers support the systems. And only meager funding is provided for programs geared towards future growth.
In 1988, the cover and an essay in The New Republic depicted selfish “greedy geezers” draining the country of resources that might be utilized in a more constructive fashion to provide growth and economic development. Funding of the entitlement programs Medicare and Social Security were leaving less money available to be spent on education and preschool activities, and the maintenance and expansion of our infrastructure.
What was noted twenty-five years ago remains a problem today, given the explosive increase in our national, state, and municipal debts. While our federal debt and budget deficits are partially the result of unwarranted tax cuts while the nation was involved in two wars, the burgeoning of our aging population with their requirements for Social Security and Medicare is the major driver of America’s long-term debt. The questions raised by this, is how do we control our budget deficits and national debt, insure a decent quality of life and medical care for our older population, and fund the programs that will promote America’s future prosperity?
The 2012 report of the Social Security and Medicare Boards of Trustees reported that the Health Insurance Trust Fund will increase from 3.7 percent of GDP in 2011 to 5.7 percent in 2035. As it has been doing since 2008, the Trust Fund will pay out more in hospital benefits and other expenditures in future years than it obtains in income, and is projected to be exhausted by 2024. While recently, the overall trajectory of medical spending has been reduced, costs are still increasing instead of stabilizing or going down. It is possible that Obamacare will further lower health care costs in the future, but the only sure way to reign in heightened spending on care is to end fee-for-service medicine. A single- payer system with physicians on salary is needed to cut unnecessary care and excessive overhead, though it will be difficult overcoming the resistance of stakeholders in the health care system to get this done.
In 1950, there were sixteen workers for each Social Security beneficiary. There are now under three and will only be two shortly. In addition, recipients of Social Security are living considerably longer than in the past, which means that more benefits must be paid out to them over time. This can be cured by having Social Security benefits kick in later by raising the retirement age. Besides helping with Social Security’s finances, this would also aid the economy by keeping more needed skilled workers on the job.
The problems with public service pensions must be solved by negotiations between the unions, municipalities, and states before more situations like Detroit occur. Sacrifices are going to have to be made on both sides, as pension and health care benefits previously promised to workers are not sustainable. Services cannot be cut if the quality of life in the cities is to be maintained. Some taxes and fees may have to be raised, but workers will also have to surrender some of their benefits.
In addition, America’s future must be guaranteed by more federal spending to improve our aging infrastructure. And Head Start and pre-kindergarten programs must be expanded to help poor and lower middle-class children catch up academically with their wealthier peers. There should also be more grants and subsidies for higher education so that students are not burdened with monstrous loans when they graduate. (Particular attention should be paid to aiding students studying math, science, and engineering.) The rates on current loans should also be lowered to make them more affordable for our younger citizens.
Social issues that separate the generations, like abortion and gay marriage, will be worked out over time as society’s values evolve. Immigration and gun control cut across the generations, although younger people generally favor a path to citizenship for undocumented immigrants. How the government will spend its money is the main question in the generational divide. Satisfying both the older and younger segments of the population will not be an easy task for our politicians who do not present a unified front on anything. If younger people want the system to change, they will have to vote in greater numbers to have their needs met.
Resurrecting Democracy
www.robertlevinebooks.com
Political junkie, Vietnam vet, neurologist- three books on aging and dementia. Book on health care reform in 2009- Shock Therapy for the American Health Care System. Book on the need for a centrist third party- Resurrecting Democracy- A Citizen’s Call for a Centrist Third Party published in 2011. Aging Wisely, published in August 2014 by Rowman and Littlefield. Latest book- The Uninformed Voter published May 2020