Wednesday, October 10, 2007

Thompson prescription "bad medicine" for Social Security

Fred Thompson's debate performance may illuminate his views, but the light wasn't flattering. Initially, I like ex-Senator Thompson; his personality, his viewpoint, hopefully his integrity.
In particular, however, his ideas on dealing with the Social Security "problem" may give pause to seniors.
His solution? Rein in benefits, which he feels will so overburden the system so as to cause an earlier blowup than had been thought. His way? Index the benefit's annual increases to inflation, rather than wages, which is OK by me, so long as his inflation index is the "senior index," meaning the disproportionate amount seniors spend for health care and medicines, the fastest growing component of their "living index."
To just consider overall inflation, but not the senior index type of inflation is to ignore the rapidly rising components of health care for seniors, retirees and the disabled, which is 4-5 times the overall rate of inflation. Standard inflation? 2-3 %. Health care inflation? 8-10%
In effect, health care inflation reduces seniors, retirees and the disabled purchasing power and their standard of living, given the disparity of the benefits annual adjustments and health care costs. Thompson's solution would make it worse.
Maybe a solution in the opposite direction would sell better to those avid-voting seniors. Offer to index Social Security benefits with a new "Seniors Living Index" which would take into account the horrendous and unjustified, ever growing, health care inflation, which averages 4-5 times or more the standard index of inflation. While that might drive the system to the insolvent stage sooner, it might also overcome the health industry's demonstrated ability to lobby, obfusate, and avoid the kind of scrutiny that might mitigate their ever-increasing ability to charge more and more... for less and less.
Someone once said, "Democracy is the worst system of government...except for all the others."
The American Health system is the very worst, except for all the other choices.
That doesn't mean we can't do better.

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