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Friday, April 12, 2013

If we can't make even small changes, we're doomed

Krauthammer is correct. If we can't make such a minuscule change that every expert agrees is the right thing to do as switching computation of cost-of-living-increases as using chained CPI, we will end up like Cyprus. We should not be impressed by any cries from the Left that this is some monumental change.
First, the proposal — “chained CPI,” a change in the way inflation is measured — is very small. It reduces Social Security by a quarter of a penny on the dollar — a $2,000 check reduced by a five-dollar bill.

Second, the change is merely technical. The White House itself admits that the result is simply a more accurate measure of inflation. It’s not really cutting anything. It merely eliminates an unintended overpayment.

Finally, the president made it clear that he doesn’t like this reform at all. It’s merely a gift to Republicans. This is odd. Why should a technical correction be a political favor to anyone? Is getting things right not a favor to the nation?

What the budget is crying out for is some entitlement reform that goes beyond the bare-minimum CPI revision that just about every deficit commission of the last 15 years has recommended as an obvious gimme. The other obvious reform is to raise the retirement/eligibility age for Social Security and Medicare to match longevity. These programs were meant to protect the elderly from destitution, not to subsidize almost one-third the adult life of every baby boomer.
Robert Samuelson ridicules the timidity of President Obama's proposed budget for doing nothing about continuing the trend of higher spending for the elderly at the expense of every other part of the federal budget.
So Obama has taken a pass. He has chosen the lazy way out. He’s evading basic choices while claiming he’s bold and brave. A more charitable interpretation is that he’s focusing his political talents on more promising causes (gun control, immigration). Either way, government is slowly growing larger while — in many basic functions — it’s being strangled. This paradox, it seems, will be Obama’s questionable legacy.
We've seen this irresponsibility for decades now. It is so depressing that, as the projections worsen, nothing changes.

1 comment:

Ron K said...

gotta love the Obama magician tricks