Greenspan Cautions on Baby Boomer Benefits

[Tombstone]

JACKSON, Wyo. (AP) - Federal Reserve Chairman Alan Greenspan said Friday that the country will face "abrupt and painful" choices if Congress does not move quickly to trim the Social Security and Medicare benefits that have been promised to the baby boom generation.

http://apnews.myway.com/article/20040827/D84NOTE01.html

[plazul]

Greenspan has been warning about the coming Social Security and Medicare crisis for years and Generations X, Y, and whatever, better start paying attention. They are going to be supporting Boomer geezers at a ratio of about three workers for every boomer.

To start with, without national health care, we'll need to means test Medicare Part B premiums and make higher income seniors inelligible to receive it. Currently, seniors pay about 25% of the actual cost of the Part B premium which is funded out of the general fund. Many seniors are under the misconception that they pay into Part B during their working lives, but that's only Part A (hospitalization) which is funded with payroll deductions.

It would be better to start now on a single payer government contract system but we don't have the political will to do it. If we substantially reduce health insurance costs for employers and the general public the savings on health insurance premiums will more than offset an increase in payroll deductions.

[gmc]

Interesting to see the same debate we are having. I always thought the US had no kind of social security sytem. If you were poor or down on your luck then tough.

[webmaster]

Actually, there are a ton of services. Food stamps, welfare, section 8 housing, and more than I can quote here.

The difference nowadays, however, is that the system actually weans the welfare recipients off the system. There were waaaaay too many people getting public assistance who really didn't need it. It was easier to stay un-employed and collect free money from the government.

Originally Posted by gmc

Interesting to see the same debate we are having. I always thought the US had no kind of social security sytem. If you were poor or down on your luck then tough.