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Obama Budget Proposes Cuts to Social Security and Medicare

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Obama Budget Proposes Cuts to Social Security and Medicare

As any honest observer of the dire fiscal nature of U.S. budgets would conclude, the driving section of deficit expenditures are entitlements. The two areas, based upon predictable demographics, that scream out for rational and extensive surgery are Social Security and Medicare. The Obama administration has a long record of gutting Medicare as part of the Obama care malady that is transforming into a national plague as the detail regulations unfold. For a summary of reporting on the subject, review the media accounts on the Kaiser Health News. One of such analysis, found in the New York Times item, Obama Budget to Include Cuts to Programs in Hopes of Deal, identifies the smoke and mirrors modifications, designed to push the Medicare medical reimbursement into insolvency.

"Mr. Obama’s budget will propose a new inflation formula that would have the effect of reducing cost-of-living payments for Social Security benefits, though with financial protections for low-income and very old beneficiaries, administration officials said. The idea, known as chained C.P.I., has infuriated some Democrats and advocacy groups to Mr. Obama’s left, and they have already mobilized in opposition.

Mr. Obama will propose other spending and tax credit initiatives, including aid for states to make free prekindergarten education available nationwide — a priority outlined in his State of the Union address in February. He will propose to pay for it by raising federal taxes on cigarettes and other tobacco products.

In Medicare, the savings would mostly come from payments to health care providers, including hospitals and pharmaceutical companies, but Mr. Obama also proposes that higher-income beneficiaries pay more for coverage."

The mere notion that the Obama administration is submitting a budget at all may be news, but the devil is in the details, within the projected outline is expected. This political kabuki theatre gives little solace to the actuary process that crunches the numbers of an aging society.

The first acknowledgment out of the lack of a grand arrangement, cited by Money News in,
Obama Proposes Cuts to Social Security, Medicare, calls for reductions in the growth of Social Security and other benefit programs.

"Administration officials have said Obama would only agree to the reductions in benefit programs if they are accompanied by increases in revenue, a difficult demand given the strong anti-tax sentiment of House Republicans."

The glaring omission from this, and any discussion on Social Security and Medicare, is the need to revise eligibility and age admission criteria. The political psyche of the public is stuck on the myth that an entitlement society can be funded on a systemic shortfall of revenue. The perennial cry for just raising taxes on the rich is a fool’s game and does harm by continually reinforcing the denial of inevitable reality, that services and programs must be dramatically curtailed or eliminated.

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Much of the partisan banter and face-off skirts this underlying issue. Feeding this self-denial culture is an electorate and a population that has become comfortable consuming their "so called" free lunch diet. The fact that the eating habits of the majority attempt to digest the social programs off the government menu, without paying for the cost of the meal is inescapable.

The longevity of recent age brackets has caused a fiscal crisis that has only one outcome, namely, national bankruptcy without fundamental changes to such programs. Impoverishment of the younger generations to fund a mathematically impossible obligation is the key element missing from any rational discussion or debate.

The central transformation of medical institutions from a proprietary return on assets system to a not for profit reimbursement corporative would allow for major reductions in the costs of medical delivery services, while enhancing patient recovery. The elimination of bureaucratic defensive medicine, driven by the practice of fear from legal litigation is absent within Obama’s budget.

The assault on holistic medicine in favor of pharmaceutical drugs is a core reason why Medicare is a failed approach to health and wellbeing. Individual Americans are walking cadavers waiting for their expected stroke or heart attack. The diet of the average consumer of fast food drives up the tolls of medical treatment and should not become a public burden upon taxpayers that strive to achieve a healthy lifestyle.

While any form of a socialistic medical payer system guarantees a reduction in the quality of medical services, the Medicare program has a large constituency and lobby influence upon legislation and administration. Only a total breakdown in health care under the Obamacare formula, might offer the slightest opportunity to revamp the entire governmental run fiasco that has an inane disconnect between treatment and the cost of the service.

Social Security has become an unfunded ponzi scheme that in unsustainable as the work force declines. Cutting the rate of growth by a recalculation of the already shaded inflation statistics is the very definition of kicking the can down the road. This time that canister might just injure your toe to the point of needing medical assistance that is certainly not covered under
The Patient Protection and Affordable Care Act.

Postponing a dialogue on serious entitlement reform or preferably dramatic scale back is playing with national suicide. As the country dissolves into a more democratic frenzy, the addition of millions of more illegal immigrants will add gasoline to the fiscal inferno that is already burning out of control.

Regrettably, the will for an electoral resolution through the ballot box, when the voter has an insatiable desire to live off the tax payments of others, guarantees a day of reckoning. The eugenics outcome that leads to euthanasia acceptance certainly will not be one of the cuts in the federal budget.

The long path to nationwide insanity is paved with governmental programs that claim to help citizens, while pushing the fiscal burden unto the unborn, millions upon which are aborted. Money in government is like poison to a drug addict. In this case, the junkie does not die it only spends more. Good health demands rational behavior.

James Hall – April 10, 2013

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