...of Social Security and Medicare

I missed being a Baby Boomer by more than two decades, but those who were of the Woodstock era are now approaching retirement age, and most, if not all, will go on Medicare and Medicaid for their health insurance needs.

People are living longer due to medical advances.  These people have been paying into Social Security and Medicare/Medicaid for most of their lives.  They expect to get something back during their golden years.

I have been a fan of Senator Orin Hatch for many years.  Recently he sent some information out in an e-mail that was rather alarming.  (I have already expressed my concern with a 14 trillion dollar national debt.)  Senator Hatch recently gave a speech on the floor of the Senate where he indicated that money that funds Social Security for Disabilities will run out in 2018, and the overall Social Security fund will run out in 2036.  (He indicated that 2036 is a full year earlier than they had predicted last year.)

As for Medicare and Medicaid, by 2020 the fund will be insolvent.  Senator Hatch goes on to say that reform is needed in these two programs.  That states need to handle half the cost and that over the next 10 years the Federal Government will spend 4.6 trillion on it.

So it appears that by the time I retire, there is a very good chance that neither of these funds will exist to help me with my retirement, not to mention my kids and grand kids.

So what is the solution?  I have a good friend who spends a lot of time lobbying for quality math and other education in my local school district.  Due to his hard work and that of the people who work with him, myself included, my children are getting a first rate education.  This is one man working with one, localized problem.  Knowing the amount of time he is spending on this definitely shows his dedication.  If one man spends countless hours on a localized problem, what will it take to solve insurmountable problems like Social Security and Medicare?

I have another good friend who is an avid Glenn Beck fan.  He updates me about the tea party movement and the idea of voting out the career politicians, replacing them with new blood.  It happened in the State of Utah.  Senator Bob Bennett was denied re-election, being replaced by a younger Senator Lee.  I know that Senator Hatch is in full swing, look what I am doing, mode, since his current term runs out in 2012.

I am torn between the experience and seniority of a proven Senator like Orin Hatch and new blood like Senator Lee.  The masses seem to want the new blood, but I can't help but wonder what would be lost from a veteran who chairs some powerful committees and has been working to reduce the deficit, etc.  At the same time I have to wonder if any progress has been made to reduce/eliminate the national debt.  If our national leaders really wanted to eliminate the national debt, could they do it? 

I have a credit card.  I have asked myself these types of questions on a regular basis, only on a lot smaller scale.  Should I use credit to buy this, when I don't actually have the money for it?  I suspect the national government asks themselves this daily.  What would happen if the government stopped spending, or greatly reduced spending, put all new projects on hold, and attempted to not spend more than they bring in though taxes?  Could they actually spend less than they brought in and apply the savings to the national debt?

I have been listening closely to the budget and debit debates that congress has been having.  It seems when proposing to cut a government program, that program flies to Washington to defend itself.  Some still get cut, but many survive.  You can look at this from many angles, too many.  What it comes down to is that we need people in congress that will seriously look at reducing spending and reducing the debt.  If, somehow, the national debt could be paid off, then the country would have lots of money that we are currently paying in interest.  That interest money could be used to pay back what has been re-allocated from both Social Security and Medicare.  Or to boost up these two programs so they will be funded when my kids, grand kids, or even myself need it!

Till next time,
Bill