Selling America's Youth Into Slavery
After the release of the second "Young Guns" podcast two weeks ago, a couple Members complained about my "yelping" about the insolvency of Medicare and Social Security and accused me of "whiny entitledness." My crime: being angry that I'm forced to contribute to a government Ponzi scheme that will almost certainly cease to exist before I reach an age at which I will benefit from the system.
Having come across Michael Gerson's column today, I feel no small sense of vindication.
Since the New Deal — and especially since the Great Society — America has chosen an accelerating transfer of wealth from young to old. Some of this was necessary and desirable. Many seniors face a period of economic struggle toward the end of life, which entitlements have effectively, compassionately eased.
But longer lives have extended this period of dependence, while health-care inflation has dramatically increased the cost of the Medicare entitlement. According to Andrew Biggs of the American Enterprise Institute, someone who retires today will pay for less than half of the Medicare benefits he or she is likely to receive over a lifetime — a subsidy given to even the wealthiest retirees. The balance of these costs is imposed on workers or added in debt.
The problem is that there are two periods of economic dependence in life — late and early. A healthy society not only cares for its elderly but also cultivates its children. Biggs estimates that the federal government now spends $6 on seniors for every $1 it spends on children, even though the poverty rate of children is much higher.
From a historical perch a century hence, this will seem an odd, sad decision. A country that increases taxes on current workers and encumbers children with debt to maintain unreformed health entitlements is looking backward. Unless this course shifts, America will have a continually diminished capacity to invest in children and young families. It is the evidence of a generation that prefers its own future comfort to the welfare and ambitions of generations to follow. And this attitude is the mark of a tired nation.
No wonder our politics seems so shallow and shabby. It is the way we all feel after we have been grabby, thoughtless and selfish.
Such fundamental economic choices lead to more than a credit downgrade. They involve an unfolding logic of decline. The young are reduced to sources of revenue for the entitlement state — their productivity consumed by others.
One of the most peculiar aspects of the discussion surrounding entitlement reform is how the terms of the debate are framed by the notion of doing right by our elderly. Nary a thought is given to how reform, or the lack thereof, will affect today's children and young families. Sure, the catchphrase "future generations" gets paid plenty of lip service, but consideration to how policies implemented today will impact our children as they grow up and hit the height of their productivity? That's nobody's concern. I guess that's no surprise -- children don't vote.
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Jul '10
Re: Selling America's Youth Into Slavery
I'm angry that the government's running a Ponzi scheme whether I benefit from it or not.
Oct '10
Re: Selling America's Youth Into Slavery
I'll have to go back and listen to that episode again but I don't recall you coming across as whiny or entitled. Then again, I think there's a difference between lamenting that your current earnings are being thrown down a hole, and whining that you're not going to get those checks when you retire.
Your comment about "future generations" is interesting given that, hey, the future is here; the kids who are going to get the shaft are already among us. It would be interesting to see what portion of Obama's youth movement from 2008 is now starting to figure out that they're the ones getting the short end of the stick.
Jun '10
Re: Selling America's Youth Into Slavery
Don't count on the Crappiest Generation, the boomers, to help you out.... The only likely result is collapse. Full speed ahead!
Sep '10
Re: Selling America's Youth Into Slavery
It is now clear that when the pols said something was "for the children," that they meant the debt. As an aside, the increase in health care costs is not wholly due to 'inflation.' That would signify an increased price for the same service. The fact is that new and improved services have become available - and they are increasingly expensive.
The key words here are "grabby, thoughtless and selfish." Economic dependency late in life, as opposed to early, is a choice for the vast majority. Elevation of present consumption over savings throughout one's productive years presents society with a fait accompli: "I can't afford health care!" This is rather like about half of the uninsured in the US. Young, healthy employed people who choose to not purchase health insurance, knowing that if they become injured or ill, someone else will pick up the tab.
BTW, don't count on 'wellness' and 'preventive medicine' to cut costs. There are few cost-effective screening tests for serious diseases. Even if we were wildly successful, a one-time savings would result. Then we have an older cohort who will still require treatment at the end of life (more expensive).
Re: Selling America's Youth Into Slavery
My father raised us kids to never expect anything more than respect and common decency from a single soul. I expect no inheritance, no government checks, no charity.
That's not to say that I believe we should all be isolated and independent from one another. But both generosity and charity and the humility to accept the same should be compelled by a faith in God, not government.
I point out that folks my age won't get the checks when we retire because the myth that Soc Sec is some sort of guaranteed pension needs to be exposed.
Nov '10
Re: Selling America's Youth Into Slavery
Your frustration is understandable, Diane. I'm in my early 40s, and my husband and I have structured our long-term savings as if these benefits won't be around at all for us. Everyone we talk to for financial advice assures us that they'll exist in some form when it's "our turn," but we don't ever factor them in when determining what we need to save. I neither want them nor (I hope) will need them.
So it is a bit galling to be forced to pay for them.
Aug '10
Re: Selling America's Youth Into Slavery
I think it is morally reprehensible that you are paying for them Diane. My eldest is 19 and I begrudge every dime that the government collects from him. My younger two are 5 and 1 and I will do what I can to ensure they pay nothing toward those programs.
My wife is Singaporean of Chinese ancestry. Their cultural imperatives have existed at least since Confucius (filial piety) and it goes something like this. Parents parent the children, but when the children come of age (begin to earn money) they are obligated to take care of the parents. My Brother and Sisters-in-law pay their parents between 15-25% of their income. My Mother-in-law has told my wife that she has to pay my parents the same. The hue and cry was tremendous, but I had to tell them, "my wife has been told to do this, I will do it, I don't care what you do with the money." They accept it.
My Niece has just graduated from the National University of Singapore and she started right off paying her mom. It works and has lasted ~2000 years. SS won't last 100.
May '10
Re: Selling America's Youth Into Slavery
Family is a natural form of social security.
I'm lucky enough to be a part of a large traditional family — many siblings, aunts, uncles, grandparents, cousins, second and third cousins, all who care about and for each other. When someone is ill, family is there. When someone is in financial need, family is there.
Because so many of my relatives are close, burdens are lighter for being shared and we have many different things to offer each other. Because we are emotionally invested in one another, our willingness to sacrifice is great.
Churches and neighborhoods are another natural form of social security. Friends and neighbors help each other. They are reliable and quick to respond to personal, contextual needs.
Our politicians have tried to replace family and local community with government. It doesn't work. The only solution is to return to building and strengthening families, to focusing on local neighbors and loved ones.
There's no way that renewal is going to happen without hardship. The young must pay more than we will receive. The old must receive less than they were promised.
If we don't accept that, everything will crash and we will begin again.
May '10
Re: Selling America's Youth Into Slavery
Diane Ellis, Ed.
My father raised us kids to never expect anything more than respect and common decency from a single soul. I expect no inheritance, no government checks, no charity.
That's not to say that I believe we should all be isolated and independent from one another. But both generosity and charity and the humility to accept the same should be compelled by a faith in God, not government.
You're not a whiner, Diane.
When we love someone, we want that person to be free. Freedom requires responsibility. Concepts of family, like anything else, can be corrupted. But a healthy family provides both responsibility and security. Healthy families force kids to learn to be free.
My grandma is 93 now. She has over a dozen relatives nearby who look after her, as well as another half dozen neighbors and family friends. Old age doesn't get much more secure than that.
Of course, she doesn't always want looking after. We often catch her doing things like trying to move flower pots even I consider heavy. Young people must learn to be independent, but old people must learn to accept their limits.
May '10
Re: Selling America's Youth Into Slavery
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Edited on Aug 12, 2011 at 4:17pmOct '10
Re: Selling America's Youth Into Slavery
RE, Diane, As for...
My father raised us kids to never expect anything more than respect and common decency from a single soul. I expect no inheritance, no government checks, no charity. Just so happens the same thought applied in my family.....
Prior to retiring, I posed a question to a Social Security Admin. during an inquiry. The request was, just cut me a check equal to the amount I was taxed for. Simple enough. The Admin. replied with almost audible horror stating, It just does not work that way !!!!!!
Interesting that.
Dec '10
Re: Selling America's Youth Into Slavery
Lie back and think of Fairness, Diane.
And, of course, never listen to anybody that thinks it is unfair for you to be expected to pay into this.
This is actually an assigment I worked on today, while driving a tractor. I want the kids to be able to tell me what a Ponzi scheme is, or a pyramid scheme, and give me their opinions about such a practice. I also will ask them what they think the appropriate punishment should be for somebody that perpetrates this crime.
After they have done so, I will then ask them to explain to me why neither Medicare, nor Social Security are pyramid schemes. Then I will ask them to, please, not throw me into the burn pit.
Dec '10
Re: Selling America's Youth Into Slavery
With the wealth and prosperity of the nation since WWII (ya know, when all these boomers were born) why should any of them need government assistance in their golden years? They have been the recipients of the nation's greatest time of expansion and now they will lounge around for 10+ years on direct transfer payments from those who have yet to get their piece of the American dream all the while spending what they accumulated on their liesure. This may sound very crass and callus, but we didn't have these problems when people worked themselves to death. I'd be willing to bet all of the health issues that are so prevelant now and drive up health spending had significanly reduced incidence as well. Maybe the Eskimos did have something going with the ice floe idea. /rant off.
Jun '11
Re: Selling America's Youth Into Slavery
I, for one, was cheering you on. The Greediest Generation has no idea of the anger it will leave behind after strip mining the young.
Derb conjured a chilling image on a recent Derb Radio: our children will so hate us that they'll dig up our remains, then smash our bones to dust.
Nov '10
Re: Selling America's Youth Into Slavery
Yikes, you might as well quote Obama...Well, at some point, you've just made enough money.
We boomers have paid into the system and yes, I want a return on my hard-earned investment dollars! Otherwise, my contributions to social security and medicare will have funded nothing but a redistribution of wealth.
Edited on Aug 12, 2011 at 6:23pmMay '10
Re: Selling America's Youth Into Slavery
Agreed. Retirement is a legal right, not a moral one (not while one is still able to work, anyway). And activity keeps one healthy.
May '10
Re: Selling America's Youth Into Slavery
I didn't hear the episode, but I doubt I'd regard such a valid rant as whining.
However, as a tactical matter I'd suggest coming to the defense only of generations that follow even yours. It makes the same point without any opening for questioning your magnanimity. It also snatches the do-it-for-the-children argument away from the bad guys.
Dec '10
Re: Selling America's Youth Into Slavery
Elizabeth Dunn
Yikes, as Obama famously declared...Well, at some point, you've just made enough money.
We boomers have paid into the system and yes, I want a return on my hard-earned investment dollars! Otherwise, my contributions to social security and medicare will have funded nothing but a redistribution of wealth. · Aug 12 at 5:53pm
I hate to break the news to you, but all that money you invested is gone. The brokerage house you entrusted your hard earned money to didn't invest it in anything. They spent it, and they did not even spend it on you. Best hope would be a return of your investment, not a return on your investment.
Dec '10
Re: Selling America's Youth Into Slavery
The money taken from those still working doesn't even cover those receiving benefits today. As the ratio shifts even further then what? It is a redistribution scheme. It would be much easier to take if the government was at least honest about it.
Nov '10
Re: Selling America's Youth Into Slavery
The King Prawn
Elizabeth Dunn
Yikes, as Obama famously declared...Well, at some point, you've just made enough money.
We boomers have paid into the system and yes, I want a return on my hard-earned investment dollars! Otherwise, my contributions to social security and medicare will have funded nothing but a redistribution of wealth. · Aug 12 at 5:53pm
They spent it, and they did not even spend it on you. Best hope would be a return of your investment, not a return on your investment.
You're making my point, exactly. But unfortunately, I had no choice - I was coerced by the U.S. govt to make that "investment."
As for your second point, see member feed post by Douglas Kimball.