Generation Gap

While we were on vacation, the U.S. political system was entangled in budget negotiations.  Missing news coverage about it was fine by me.

But being questioned about the U.S. by foreigners, and a daily reading of the International Herald Tribune's excellent news coverage, has forced me to think more clearly about political matters.  Thus I have written one post on a political topic.  Here goes...



Generally Accepted: The U.S. has a budget problem.
Reality: The great majority of our future spending/obligations will come from defense spending, Social Security, and Medicare (77% according to this really cool presentation giving ideas on how to reform the government as if it were a business).

Defense spending is never going to be subject to a drastic cut, as far as I can see.  I only hope that it will be gradually scaled back. 

So let's talk about S.S. and Medicare/Medicaid.  These programs are obligated to pay out much more than they have taken in as funding, and the recent health care bill didn't change it much either way.  As a young person, I have had many conversations with people in my generation that acknowledge (sometimes humorously) that we do not expect access to these programs when we are old.  They will be bankrupt.  Fine, we can deal.

We can't deal as well with being forced to pay off debt from previous generations using these programs as long as possible.  And that's where I get frustrated now.  Both political parties insist that any future cuts will not take effect for older people, often defined as over 55.

Why not?  These programs are going bankrupt.  This happens when you spend more than you make.  People older than 55 have not paid enough to enjoy the Social Security and medical benefits they are set to receive.  Much of this is due to the great news that people are living older and older (S.S. was modeled on a system that assumed an average age of death of 65... thus retirement age).  I am very happy to have many more years with my parents and grandparents and their generations, but the fact remains that they did not pay for the benefits they are entitled to receive.

I wouldn't have a terrible issue with this normally.  We will instead pay for it with debt, and having too much national debt is not actually the end of the world.  It will certainly result in economic stress, give central bankers heartburn, and may cause default.  But life is more than papers and money; life will go on.

I only bring it up because I have listened to many people in older generations tell me that our governmental spending is taking us to hell in a handbasket, and that if I don't vote a certain way, I will be responsible for any future problems.

Well, no.  Spending in the last two administrations has increased dramatically, but the primary drivers of debt still are entitlements owed to older people.  And they are responsible for it.

This excellent article on this subject cites research saying the only 55+ people who will possibly pay enough Medicare taxes through their lives to account for their benefits are the very affluent.  Average earning 55+ people will receive more than three times what they paid in.

The retorts to this from the 55+ generation tend to claim that they deserve it after paying taxes their whole lives, that they didn't get a chance to choose the Medicare/S.S. system, that there is nothing they can do to change it, or that they weren't in favor of it in the first place.

The first reply isn't economically valid.  They didn't pay in enough to get what they are receiving and will be getting those benefits on the backs of future generations.  That is not fair. 

The other retorts are really just different ways of the individual declaiming responsibility for national political decisions.  If America were a monarchy, that would be fine.  You didn't have anything to do with the government, so the decisions aren't yours.  But in a democracy, a government of/by/for the people, freedom comes with responsibility.  The responsibility is that the decisions are your decisions.  Like them or not, the government is yours.  You are responsible for what it does.  Not 'fat cats in Washington', 'corporate interests', or 'union organizers'.  You.  Me.  Responsible.

This was driven home to me by the rise of the Tea Party movement.  I find most of their ideas crazy, but in the end I respect the action.  They didn't like what they government was doing.  Rather than not voting, calling in to radio talk shows, and complaining to their friends, they did something about it.  They held meetings, organized, and nominated a few of their friends to represent them and their interests.  Boom.  That's democracy.

So, here's my personal plea to the 55+ group.  Don't tell me how screwed my generation is.  Take responsibility.  Politicians of both parties are refusing to consider entitlement cuts for older people because older people vote, and politicians think they don't want to vote for cuts to their entitlements.  Call up your politicians and tell them otherwise.  Vote for people with the courage to make cuts.  Do something really crazy and turn down your Social Security and Medicare checks.

My generation needs to do something about it, too.  We need to vote more, obviously.  But we need to be more willing to engage in honest political conversation.  I think we've had it bred out of us; we sit silently when being lectured by the 55+ generation because we've been trained to get political conversations over with as quickly as possible.  But maybe we need to listen more earnestly and speak up more frequently.