11 Jan 2011

Simple Math Explains Why Social Security and Medicare are Leading us Into Bankruptcy

The Concord Center, as always a shining light of common sense on budgetary issues, highlights a Urban Institute study that sheds light on why Social Security and Medicare are leading us into Bankruptcy in a recent post.

The kicker:

Medicare payroll taxes, which only go towards Medicare Part A (hospital insurance), combined with premiums (which are set at levels to pay for about 25 percent of Medicare Part B costs), only cover 51 to 58 percent of total Medicare expenditures over time.

This is basic mathematics. We’re not paying enough in, and spending too much. Its childish to think we can go without either drastically cutting, drastically raising taxes, or a mixure of the two. Since neither of the first two are at all politically possible, the real question is how much taxes need to be raised, and where we can trim. No longer can we just accept that we’re going to just borrow the difference between what we want and what we’re willing to pay in taxes.

Really an interesting post. That snippet above is just one nugget out of several… check it out.

Read on at the Concord Center »

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6 thoughts on “Simple Math Explains Why Social Security and Medicare are Leading us Into Bankruptcy”

  1. Solomon,

    Your basic assumption COULD/MIGHT be reexamined. Both programs are inanimate objects. In and of themselves, they can’t be changed. People, however, (and coalitions of same) can effect change to both Social Security and Medicare.

    Only until we change the TALK of our dialogue, will we begin to WALK toward meaningful change.

    john

        1. For future reference, if you want an answer to something, the person you are asking needs to know what you are asking about. I don’t play stupid games like this. You wont be getting one here.

  2. Is “Simple Math Explains Why Social Security and Medicare are Leading us (Solomon Kleinsmith and John Chambless) Into Bankruptcy”.

    Or are we (Solomon Kleinsmith and John Chambless) using “Simple Math Explains Why Social Security and Medicare are Leading us (United States of America) Into Bankruptcy” when our problems, those of the United States of America (that’s you and me) can be reduced to simple math.

    No… wait… I have a solution. Let’s take ‘the solution’ out of “their pocket.” Now, that is simple… Noun>>Verb>>Object.

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