
 |
|
May 13, 2013
David G. Savage: Church-state, literally? Supreme Court weighing public school graduation in a church
May 10, 2013
Rabbi Berel Wein: Be all that you should be
May 8, 2013
Peter Ford: Why China is welcoming both Israel's Netanyahu and Palestinians' Abbas
Warren Richey: Obama administration quietly backs out of appeal over new contraceptive mandate
Fred Weir: At Kerry-Putin meeting, US-Russia relations thaw --- a tad
The Kosher Gourmet by Leela Cyd Ross : Almost too pretty to eat, this colorful salad with Sicilian inspiration will tickle the taste buds and delight your visual sensibility
May 6, 2013
May 3, 2013
Kids, kittens the Same? With employee perks at struggling Internet pioneer Yahoo! it's hard to tell
Sandy Kleffman: Artificial kidney offers hope to patients tethered to a dialysis machine
April 29, 2013
Roy Gutman: Poland's new Jewish museum celebrates life, doesn't revisit Holocaust
Mark Clayton: Terrorism in America: Is US missing a chance to learn from failed plots?
Kim Murphy: Boston Bomber's 'Svengali' Revealed
Pete Spotts: Tiny satellites + cellphones = cheaper 'eyes in the sky' for NASA
April 26, 2013
Clifford D. May: Defense in the Age of Jihadist Terrorism
Sharon Palmer, R.D.: How to feel your best -- with plenty of energy, a healthy weight and optimal mental and physical function -- without driving yourself batty
April 24, 2013
Morgan Housel Admit it: No one has any idea what's going on
April 22, 2013
US man departing country arrested on terror charges
Barbara Williams: An unorthodox but growing treatment in a 9-year-old's battle against cancer
April 19, 2013
Caroline B. Glick: Why Obama's visit to Israel had no impact on public opinion or government policy
Morgan Housel: Gold collapse: The start of something big?
Pete Spotts: Livable super-Earths? Two candidates among Kepler's latest finds
April 17, 2013
Shira Rubin: Too much of a good thing? 'Palestinians' realize downside of foreign aid boom
Morgan Housel: BAD NEWS: EVERYONE IS RIGHT!
April 15, 2013
Kristen Chick: Egyptian Christians respond with harsh words to attack -- rocks, Molotov cocktails, and gunfire -- against main cathedral
Marcy Darnovsky and Karuna Jaggar: High Court to decide if you should own your DNA
Howard LaFranchi: US bracing for more Russian blowback after taking action against 18 more human rights violators
April 12, 2013
Mark Clayton: New cybersecurity bill: Privacy threat or crucial band-aid?
Jewz in the Newz by Nate Bloom: Jackie Robinson's Friend, Hank Greenberg; CNN's Jake Tapper; Texas County in the News is named for 19thC. Jewish soldier and Congressman
The Kosher Gourmet by Susan Russo: FRUITY QUINOA STUFFED PEPPERS: A flavorful, colorful and edible vessel of delicately fluffy, mildly nutty filling combined with chewy apricots, tangy cherries, and crunchy pistachios
April 10, 2013
Peter Grier: North Korean missiles: Could US shoot them down?
Morgan Housel: Warning: Don't waste your capital being fooled by profit prophets
Donald Hensrud, M.D.: Mayo Clinic Medical Edge: Take vitamin supplements with caution --- even approved, they may actually do damage
Eryn Brown: 74 DNA discoveries move cure closer for three cancers
April 8, 2013
Jonathan Tobin: What Part of No Preconditions Do American Jews Not Get?
Fred Weir: Is Putin finally trading his own party for a new power base?
|
| |
Jewish World Review
August 29, 2011
/ 29 Menachem-Av, 5771
Obama, rivals duck the entitlement crisis
By
Michael Barone
http://www.JewishWorldReview.com |
Some of society's most intractable problems come not from its failures but from its successes. Often you can't get a good thing without paying a bad price.
A prime example is our public old-age pension system Social Security. It has been completely successful in wiping out poverty among the elderly. Old ladies no longer have to eat cat food to survive.
But we pay some prices for this. One is a lower savings rate. China has a humongous savings rate in part because it has no reliable old-age pension system. People have to save if they don't want to starve.
In the United States we got out of the habit of saving. In the decade up to the financial crash of 2008, the U.S. savings rate fell below zero.
We felt comfortable borrowing on the supposedly ever-increasing values of our houses to support current and sometimes lavish consumption. Now we're paying the price.
But even if our savings rate rises back to the level of, say, the 1980s, it still may be lower than optimal.
The longer-term price any society pays for a public old-age pension system is lower birthrates. Farmers had large families in order to provide additional labor for their working years and sources of income for their dotage. So did factory workers a century ago.
In Western Europe birthrates have fallen below the rate necessary to replace population -- in some countries, far below. The American birthrate has remained, barely, above replacement rate largely because of immigration. But immigration has slumped during the recession and may never return to the 1990-2008 level.
Unfortunately, under Social Security like most public pension systems, current pensions are paid for by current workers. As life spans increase and birthrates fall, the ratio of pensioners to active workers falls toward one-to-one.
That's not enough to support the elderly in anything like the style to which they have been accustomed, unless tax rates are sharply increased. And sharply higher tax rates, as Western Europe has shown over the last three decades, reduce long-term economic growth.
That's the problem, often abbreviated as "entitlements," facing our political system.
Some politicians have tried to address it. Fresh from his re-election victory, George W. Bush sought changes in Social Security in 2005. The obvious reform, then as now, was to reduce high earners' pensions by adjusting them upward by inflation rather than wage growth.
But Democrats would have none of it. As Bush's job approval plummeted in the wake of Hurricane Katrina and lack of success in Iraq, the issue was quietly dropped.
This year Republicans addressed entitlements again, in the budget prepared by House Budget Chairman Paul Ryan and approved in the House.
His proposal was to shift Medicare from the current plan to "premium support," in which seniors would get subsidies to pay for their choice of competing insurance plans. This is similar to the Part D Medicare prescription drug program that has won wide acceptance and has cost far less than projections.
Once again Democrats have responded negatively. They credit their "Mediscare" tactics for a special election victory in a Republican House district in Upstate New York.
What's interesting is that, in contrast to 2005, we have had nothing in the way of presidential leadership on this issue. Barack Obama, hailed by some conservatives and most liberals as a pragmatic problem solver, has been happy to play politics on entitlements as well as on the budget.
He blithely ignored the recommendations of his own commission headed by Erskine Bowles and Alan Simpson. He has said since he would take a look at raising the Medicare eligibility age -- it's now lower than the Social Security age.
But anyone can take a look at a proposal. We pay presidents a good salary to lead, not just to look.
So far the Republican presidential candidates have not done much leading on entitlements either. They have tended to take a gingerly approach to Paul Ryan's Medicare proposal and Newt Gingrich even trashed it.
The conventional wisdom is that this is simple political prudence. Don't give the other side a juicy target.
But we are faced not only with a huge short-term budget problem but with the prospect of a Western European future of an enlarged government, ever higher taxes and lower growth. Is that really what American voters want?
Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
Comment by clicking here.
JWR contributor Michael Barone is senior political analyst for The Washington Examiner.
Michael Barone Archives
© 2009, Washington Examiner; DISTRIBUTED BY CREATORS SYNDICATE INC.
|
|

Arnold Ahlert
Mitch Albom
Jay Ambrose
Michael Barone
Barrywood
Lori Borgman
Stratfor Briefing
Mona Charen
Linda Chavez
Richard Z. Chesnoff
Ann Coulter
Greg Crosby
Larry Elder
Suzanne Fields
Christine Flowers
Frank J. Gaffney
Bernie Goldberg
Jonah Goldberg
Julia Gorin
Jonathan Gurwitz
Paul Greenberg
Argus Hamilton
Victor Davis Hanson
Betsy Hart
Ron Hart
Nat Hentoff
A. Barton Hinkle
Jeff Jacoby
Paul Johnson
Jack Kelly
Ch. Krauthammer
David Limbaugh
Kathryn Lopez
Rich Lowry
Michelle Malkin
Jackie Mason
Ann McFeatters
Dale McFeatters
Dana Milbank
Jeanne Moos
Dick Morris
Jim Mullen
Deroy Murdock
Judge A. Napolitano
Bill O'Reilly
Clarence Page
Kathleen Parker
Star Parker
Dennis Prager
Wesley Pruden
Tom Purcell
Sharon Randall
Robert Robb
Cokie & Steve Roberts
Heather Robinson
Debra J. Saunders
Martin Schram
Greg Schwem
Culture Shlock
David Shribman
Roger Simon
Lenore Skenazy
Michael Smerconish
Thomas Sowell
Ben Stein
Mark Steyn
John Stossel
Cal Thomas
Dan Thomasson
Bob Tyrrell
Diana West
Dave Weinbaum
George Will
Walter Williams
Byron York
ZeitGeist
Mort Zuckerman

Robert Arial
Chuck Asay
Baloo
Lisa Benson
Chip Bok
Dry Bones
John Branch
John Cole
J. D. Crowe
Matt Davies
John Deering
Brian Duffy
Everything's Relative
Mallard Fillmore
Glenn Foden
Jake Fuller
Bob Gorrel
Walt Handelsman
Joe Heller
David Hitch
Jerry Holbert
David Horsey
Lee Judge
Steve Kelley
Jeff Koterba
Dick Locher
Chan Lowe
Jimmy Margulies
Jack Ohman
Michael Ramirez
Rob Rogers
Drew Sheneman
Kevin Siers
Jeff Stahler
Scott Stantis
Danna Summers
Gary Varvel
Kirk Walters
Dan Wasserman

Tech Q&A
Mr. Know-It-All
Ask Doctor K
Richard Lederer
Frugal Living
On Nutrition
Bookmark These
Bruce Williams
|