More evidence Medicare is a bad deal for younger Americans

June 27, 2011

A stunning table by healthcare economist John Goodman:

Goodman then explains why the twentysomethings take the hit:

No money has been saved. No investments have been made. No cash has been stashed away in bank vaults. Today’s payroll tax payments are being spent to pay medical bills for today’s retirees. And if any surplus materializes, it’s spent on other government programs. As a result, when today’s workers reach the eligibility age of 65, they will be able to get benefits only if future taxpayers pay (higher) taxes to support them.

Just as Bernie Madoff was able to offer early investors above-market returns, early retirees got a bonanza from Social Security and Medicare. That’s the way chain-letter finance works. But in the long run, there’s no free lunch. That’s why things look so dismal for young people entering the labor market today.

 

One comment

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” And if any surplus materializes, it’s spent on other government programs.”

Yeah, see that’s the part I’ve got a real problem with. I’m willing to chip in what is a relative pittance, to help out the old, sick, & infirm. It’d be nice if it was there for me when I got there, but I’m hoping not to have to ever find out. When that $$ is taken out of my checks, or when I’m self-employed and I pay voluntarily- I’m paying it SPECIFICALLY for MEDICAID. Not so the gov’t can raid the fund to do… whatever it is that the gov’t does. (bail out their banker friends, whatever).
This is a non-partisan post. Heck, it’s an anti-partisan post. The ass-end’s of crooks & liars fill most seats on both sides of the aisle.

Posted by dXm | Report as abusive