GDP and Fingers

From Liz in Canada.

Mr K. and Mr. Lee,
I have been reading part of your site and, while on the whole I found it to be a little one sided, I found one opinion to be rather alarming.  The only mention I have found of this issue on your site is the following quote: “As the baby boomer generation ages, where are we going to get the money and resources to provide unlimited free healthcare?  Is it fair to saddle the current generation with a massive mountain of debt to do so?” While relatively harmless when only taken on its own, I wonder what the effect will be when others of my generation, the one who will have that massive debt, will respond to your quote.  The simple fact is that if not for our parents, who will require massive quantities of health care, we would not exist.  Was it fair to saddle them with the burden of raising us until, in some cases, the very late 20’s?  The current cost of raising a child is approximately 100 thousand dollars.  That does not even take into account the emotional responsibility as well as the difficulties involved in instilling a sense of responsibility and other , for lack of a better word, wantable attributes in another life.  After all this you actually raise the question is it fair to pay for their health care, to keep them comfortable, and to ensure that they feel as little pain as possible?  Perhaps you need to reevaluate your priorities ever so slightly.  By they way I am a canadian who has so far lived in ontario (universal health care) and alberta (more privatized) and I only have this to say: wait times may be high but there are less people missing fingers in ontario. I’ll gladly wait the extra time if it means getting the care i need.

Here’s my response.  My numbers might not be exactly right since I’m at work and wrote this from memory, but the overall theme is correct. Please, if you find more accurate numbers post them in the comments and I will correct what I wrote.

Elizabeth,

Thanks for a reasonably polite question.  Allow me to elaborate.  At the time Social Security was created there were more people paying into it than there were people taking out of it.  Thus there was enough money to finance the thing, plus a little bit left over. Piece of cake.

However, wherever there is a mountain of money laying around, and politicians eager to spend it to show that they’re “doing something,” there will be trouble.  So what the politicians have done is write themselves the world’s biggest IOU.  To put this in basic terms, imagine you had an empty jar on top of your fridge into which you put money for a rainy day.  Then, one day, you see a really cool stereo you want to buy. So you write yourself an IOU, take the money out, and spend it.

Then, when the rainy day comes, you have no money.  In this scenario, however, the only person who suffers is you.  What happened was the government opened the jar, wrote the IOU, then continued to write itself IOUs, to the point that there are currently something like $43,000,000,000 (that’s 43 trillion dollars) in unfunded benefits (i.e. IOUs) that the government has promised the baby boomer generation, who are now hitting retirement age.

Now, if you look at the boomer generation as a whole, they are the wealthiest single demographic in the entire United States.  The vast majority of them have no problem paying for their own medications.  They paid off their mortgages long ago, their children are grown and have college educations and families of their own, they’re doing just fine.  However, they’ve also been paying into the Social Security ponzi scheme their whole life and rightly want to get that money back.  Unfortunately, the government has already pissed it away.

So, how do we come up with $43,000,000,000?  There are one of two ways, we massively decrease benefits or massive increase taxes.  Since the boomer generation will be dead within the next two or three decades, and they are retired and thus not paying into the system any more (only withdrawing from it), they aren’t going to stand for any cuts in benefits.  So the only remaining option is to increase taxes to generate this $43,000,000,000.

To give you an idea of how much money this is, the entire gross domestic product (GDP) of the United States is about $13,000,000,000 a year.  Again, to put this in basic terms, imagine you make $13,000 a year, and you have $43,000 in credit card debt.  How the hell are you going to pay it off?

So, as I initially wrote, is it fair to saddle the current generation, who have no stake yet in social security, with a $43,000,000,000 bill that they had no hand in creating?  If you made $13,000 a year, how would you feel being handed a $43,000 bill that you didn’t create?

So, don’t confuse what i wrote with “You’re a mean heartless poo-poo head because you don’t want to take care of old people.” The issue is a lot bigger and a lot more complex than that.  The problem is that you have fallen for Michael Moore’s schtick—“Anyone who disagrees with me wants to throw old people out into the snow.  Look, they don’t sew fingers back on in America!” This is, as we have demonstrated countless time on the site, complete bullshit.

Is our site one-sided?  Perhaps.  But if so, it is only to act as a counterweight to the one-sided stream of lies and propaganda that have you believing everything that comes out of Michael Moore’s mouth.

So, Elizabeth, you tell me.  Should a recent college graduate, starting his life, be instantly saddled with a tax burden of roughly $35,000 a year for his entire life just to pay for the healthcare of one of the wealthiest groups of people in the country?  You tell me, does that seem “fair” or “compassionate” to you?

It sure doesn’t to me.  Oh, and one final thought:  when your super wonderful awesome magical healthcare system, where everyone has sunshine and rainbows shooting out their assholes, fails to provide you the healthcare you need, you always have the option of crossing the border into the evil, heartless, for-profit United States, as millions of your countrymen do every year, fingers or no fingers.