"Health Care: Progressive Change in a Digressive Direction"

It seems as though our leaders are lost at sea when it comes to addressing health care in America. In the 2nd debate with John McCain, Barack Obama declared he believed it is a right of every American to have health care. Barack Obama believes every American has the right to the same health care plan that members of Congress receive.

Let me first provide a few facts about our healthcare funding. Currently, Medicare is an enormous tax burden but future burden will break America’s back. This statement comes directly from the Trustees of Social Security and Medicare trust funds.

“If the Trustee's projections prove a reliable guide to the next few decades, absent an increase in earmarked sources of revenue for the program, in just 15 years payment of currently scheduled Medicare benefits would require General Fund transfers equal to 25 percent of Federal income tax revenues (projected at their historic level of GDP)—more than triple their 2005 fiscal burden—and less than 10 years later the General Fund transfer would equal nearly 40 percent of Federal income tax revenues.”[i]

The numbers are shocking! Consider even further the following facts:

1) In 1962, TOTAL programmatic spending on programs such as welfare, social security, and medical programs amounted to 32% of overall tax revenues.

2) Today, the same spending amounts to over 60% of tax revenues.

3) Today, Medicare accounts for roughly 16% of overall tax revenue outlays.

4) As mentioned above:
a) In 15 years – 25%
b) In less than 25 years – 40%

So, hypothetically, in 25 years 84% of all tax revenues will be going to social programmatic spending! That is, 60% today plus 24% (the difference between Medicare today and 25 years from now).

Note that these figures are on top of Social Security funds having a negative balance beginning in 2018 and being completely exhausted by 2038! Barack Obama has already ostracized conservatives for cutting back on Social Security expenditures. The only other way is to increase taxes!

If I were the President of the United States, I think now is a great time to announce free, government-sponsored, taxpayer provided health care for everyone! However, back here in reality, the government does provide everyone health care. Granted you may have to go to the emergency room, but you will not be turned away. Apparently, that is still insufficient.

It is time to come up with solutions, so what are they?

Notes:

[1] Social Security Administration. “Message to the Public.” 2006. <www.ssa.gov/history/pdf/tr06summary.pdf>

“Vote to Pursue the American Dream”

We truly live in a great nation. We live in a nation where the “pursuit of happiness” is not only a dream or a vision of our Founding Fathers, but it is a reality hundreds of millions of Americans live every day regardless of race, sex, or religion. It is amazing to be a part of this great nation and to know that over 200 years after the Declaration of Independence, the same freedoms and values that set this nation free continue to distinguish it from the rest of the world today.

Nevertheless, we face the task of preserving these values as our country sails in the headwinds of a storm. Our country is currently engaged in a financial crisis, an Iraqi war, and increasing prices at the pump. Though these trials are great, I believe the eye of the storm is much more fundamental in nature. Our nation’s social policies are currently punishing the hard-working middle class and structured to encourage those who are bound to our government’s social programs to remain dependent on them. I will explain how. In 1962, our nation spent more than 32% of all tax revenues on programmatic spending. Today, the same spending on programs such as welfare, social security, Medicare, and Medicaid account for over 60% of all our tax revenues! In addition, health care for every American is on the table and we continue to increase the minimum wage! How much more will that cost the middle-class?

We live in a very competitive nation, the most competitive. But we live in an increasingly more competitive world. Knowing this, as Americans we have choices. Many Americans choose a trade and others choose to continue on to pursue a college degree or both. And both come with sacrifices. These sacrifices can be in the form of overtime hours, time away from your family, or in student loans. I was proud to work for a company where welders, engineers, and managers worked 50-60 hour weeks to provide sustenance, health care, and higher quality of life for their family. However, our current system is giving many of the same hard-earned benefits away for free – or at the expense of those hard-working middle class citizens.

Our current welfare system is designed to bring individuals and households up to the poverty line which in 2007 was $21,203 for a household of four. Therefore, if a family works full-time earning only $21,203, they do not qualify for financial assistance. However, if they do not work at all, they can qualify for full financial assistance up to the $21,203 level and receive additional assistance in the form of food stamps and housing subsidies – both of which decrease in correlation with income. Where is the incentive for individuals to work their way out of poverty?

The minimum wage has been increased and will be at $7.25 an hour by July 24, 2009. What is the objective of minimum wage? In Hillary Clinton’s floor statement in support of the wage increase she said:

“Any setback becomes a major obstacle to being able to pay for gas, pay for food, pay for health care and prescription drugs, pay for tuition, pay for all of the necessities of life. Mr. President, I think that it's hard to stand here on the floor with this amendment before us and not wonder, when will the majority stop giving privileges to the already privileged?”

I do not know anyone earning minimum wage that can independently afford health insurance, prescription drugs, tuition, and all of life’s necessities, much less all of them together. Many middle class wage earners cannot afford these items, so how could someone earning the minimum wage? In addition, why should the hard-working welders and engineers have to work 50 and 60 hour weeks to provide for their family while the government gives these amenities to other families for free?

The truth is that over 53% of minimum wage earners are under 24 years old, 40% live with their immediate family or relatives, and the average household income for an individual earning the minimum wage in 2005 was nearly $47,000. In effect, by raising corporate wage costs, the minimum wage, corporations must do one of the following:
1) Take no action and accept the loss in revenue.
2) Decrease the workforce to balance the wage increase.
3) Increase the price of goods and services to compensate for additional labor costs.
4) Outsource labor overseas.
5) Replace workforce with technological advancements.
6) Finally, any combination of the above.

The social security program was designed in 1935 as a “comprehensive package of protection” against the “hazards and vicissitudes of life.” Today, individuals choose to save less and depend on social security as a retirement package. As it is today, social security is an insolvent program and will have a zero balance in 2038. This means many young Americans have paid in these benefits but will not receive them. When used for what it was designed, old age and disability insurance, social security serves a just purpose. However, in conjunction with welfare programs, Medicare, Medicaid, and potentially health care for every American, social security is simply the final step in a life of government dependence.

What I ask of you is this… In this election, search within yourself and determine what it is that you value most. Our social policies are increasing our dependency on the government. In doing so, Americans find themselves in a poverty trap without incentive to escape and our government wants to pump more taxpayer money into this endless poverty cycle. If salary requirements, health care, and education were part of the constitution, then the United States would not be a land of the free but a visage of its Cold War counterpart.

Benjamin Franklin said, “Our constitution doesn’t guarantee happiness, only the pursuit of it.” Vote to preserve your dream, so you don’t have to sacrifice yours by subsidizing another’s.

Resources:
Congressional Budget Office
http://www.cbo.gov/budget/data/historical.shtml

Social Security Administration
http://www.ssa.gov/history/briefhistory3.html

Bureau of Labor Statistics
http://www.bls.gov/cps/minwage2007.htm