Are Social Programs Like a Bad Marriage?

Ambulance used on Mount Kilimanjaro, Tanzania, to evacuate climbers suffering from acute altitude sickness. It is the prototype transportation device for the Obama National Health Care Plan.

Scott Sturman
fliesinyoureyes.com

Bliss is the honeymoon - a care free time filled with optimism and mutual infatuation. As the romance matures and novelty gives way to routine, the marriage will be confronted by a number of challenges, not the least of which are financial. If the couple fails to save and spends beyond their means, the union is in trouble.

Social Security and the American people exchanged vows in 1935 with promises to live prudently in order to provide retirement benefits for generations to come.

“I love you, sweetheart. I'll take care of you forever. Social Security is voluntary and will cost only 1% of the first $1400 of your yearly income.”

“I love you too, honey, but do you think we can afford it?”

“Trust me. It's not a problem. Our payments will top out in 1949 at 3% based on a maximum $3000 annual income. Next year I'll give you a pamphlet which will promise this is “the most you will ever pay.” (This claim actually was printed in 1936 and sent to the American people!)

Social Security is now the largest government program in the world and the single greatest expenditure in the federal budget. Presently the taxation limit is 6.2% for both employer and employee calculated on a maximum $106,800 annual income. Despite the ever larger appetite for tax revenue, the Chief Actuary for the Social Security Trust Fund in 2008 calculated $13.6 trillion of unfunded obligations. Clearly, this marriage foundered due to unreal expectations, too many credit cards, and way too many dependents.

When it comes to betrothals with social programs, the American people have polygamist tendencies. President Johnson presided over the next ceremony in 1965 as Medicare stood at the altar with a naive bride-to-be. The couple's financial plan was initially modest as they pledged to live modestly and carefully watch expenses. The monthly Part B Medicare payment was set at $3, but by 2009 it soared to $96/month, while wealthier retirees owed between $135 and $308. By this time the 45 year long marriage had plunged so far into debt the only hope was to sell the family farm and move into a commune.

When examining the history of Medicare, it is clear as more benefits were added to the program red ink cascaded over the balance sheet. Patients viewed all aspects of their health care as insured and lost the connection between supply and demand. Politicians, never having demonstrated far sighted financial judgment, eagerly acted like credit card companies sending unsolicited credit applications to teenagers, promising more benefits to increase their chance of reelection.

Obama Care transfers control of the medical industry to those who repeatedly have shown they cannot manage anything very well, but this time things are different. The marriage has a savior – Barrack Obama, the best marriage counselor available. It was reassuring to hear him comfort us a few weeks ago when he stated this massive, convoluted program is actually a “middle of the road solution.” This is good news! Never mind the legacy of the United States Postal Service, Medicare, or Social Security. This is not business as usual. The President promised it will save money, not ration health care, and he will love me in the morning.