Over the next five weeks the CRNC will be looking into the growing entitlements that left unreformed will doom this country’s fiscal future. We must realize that government is not the solution to the problem…it IS the problem.
This Week’s Theme: Medicare
The Promise: “What we have done is kicked this can down the road. We are now at the end of the road and are not in a position to kick it any further,” he said. “We have to signal seriousness in this by making sure some of the hard decisions are made under my watch, not someone else’s.”
The Reality: We’re kicking the can down the road. Obama’s budget does nothing to reform a Medicare entitlement that will create huge deficits for the foreseeable future. Rather than seek fundamental reforms the White House budget proposal actually proposes major increases in Medicare spending. http://www.nytimes.com/interactive/2010/02/01/us/budget.html
Fact 1: Medicare Entitlement Spending Threatens to Bankrupt Our Generation
Currently the federal government spends 21.7% of the national budget on two major health entitlements, Medicare and Medicaid, which represents 15.2% of the nation’s GDP. If the status quo continues unaltered, these two programs will consume 20% of GDP by 2016.
When President Lyndon Johnson signed Medicare into law has said,
“No longer will young families see their own incomes, and their own hopes, eaten away simply because they are carrying out deep moral obligations to their parents.”
But as Congressman Paul Ryan wrote,
“Absent reform, the program will end up delivering exactly what it was created to avoid: it will consume the prosperity of today’s younger generation to finance an unsustainable path of spending”
Read More: http://www.roadmap.republicans.budget.house.gov/plan/challenges.htm
Fact 2: What’s Worse? Insolvency Looms
The Medicare program is simply going bankrupt. Trustees for Social Security and Medicare, the government’s two biggest benefit programs, have issued a new report saying that the Medicare will pay out more benefits than it collects and will be insolvent by 2017. That’s only 7 years from now. The reason (in addition to waste and fraud) has been Medicare’s inability to control costs. A 2007 report by the Congressional Budget Office found that total spending per Medicare enrollee grew at 10.6% annually while the privately insured grew at 7.7%. Moreover the report predicts,
“In the absence of an unprecedented change in the long term trends, national spending on health care will grow substantially over the coming decades.”
Democrats so far have proposed nothing resembling fundamental change. Rather than focus on the spending side of the equation, to reign in bloated government programs. they have emphasized the tax side of the formula by letting the Bush tax cuts expire. Eventually we will come to a point where increasing taxes simply is not an option. What then Mr. President?
Fact 3: Our Generation is Resigned to Failure
A recent Zogby poll which asked whether people believe Medicare will be there for you or your children found that:
|
Overall |
18-29 |
30-49 |
50-64 |
65+ |
||||||
|
You |
Your Children |
You |
Your Children |
You |
Your Children |
You |
Your Children |
You |
Your Children |
|
|
Yes |
50 |
18 |
39 |
20 |
33 |
15 |
60 |
17 |
89 |
24 |
|
No |
23 |
45 |
31 |
47 |
34 |
55 |
13 |
41 |
2 |
25 |
|
Not Sure |
26 |
37 |
30 |
33 |
32 |
31 |
27 |
43 |
9 |
51 |
Unsurprisingly, a minority of young adults believe that Medicare will survive long enough for them to receive benefits. The minority grows even smaller, a mere 20%, who believe that their children will ever be able to receive Medicare’s assistance. Young adults have lost faith in one of government’s key programs and one of the closest analogues we have to what government health care will look like. How, given the government’s track record, could we expect different results!
Bottom Line: The federal government is simply not equipped to handle huge entitlement programs without unacceptable levels of waste, fraud, and inefficiency. Reforms are necessary. But more important is a fundamental change in the role of government. These entitlements must return to their initial mission – safety nets meant to catch those who fall, not anyone who chooses to jump.
Brandon Greife, Political Director of the College Republican National Committee



Obama’s lowest job approval ratings come in the areas of healthcare policy, the economy, and the federal budget deficit, which coincidentally are the three issues he has devoted the most face-time to. To some degree, this is exactly as you would expect it. The President can be seen as devoting his popularity in an attempt to rally support for unpopular portions of his agenda. It wouldn’t make sense for him to expend all of his political capital to hammer home issues that people already agree with. But this would overlook a key point behind these latest poll numbers – almost all of them represent Obama’s lowest popularity on the issue since he became President.
