FDR signed Social Security into law in 1935. Medicare came along 30 years later. Social Security is the largest government program in the world (funny given the rep of most of Europe). And the two programs combined not only rank as two of the three largest chunks of the federal budget, they consume more than a third of it.
So there's a lot at stake here. And you'll have to forgive my concern – if not outright panic – at the trustees report that dropped yesterday detailing just how much worse off these two programs are than any of us realized.
Pointing a finger at the still staggering economy and higher energy prices, the trustees reported Social Security will dry up in 2033. And Medicare will be gone in 2024.
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(Of course, the dirty little secret tucked away in this report, overlooked by almost everyone, is that the disability insurance component of Social Security faces an even darker future, with projections calling for it to dry up in just four years.)
While it's political suicide to advocate raising the eligible retirement age, I'd like to do just that. (Besides, any hopes I ever had of a political career died out decades ago.) I know the GOP's been pushing that for a while now, but I'm not suggesting some gentle two or three-year nudge. I say we push it back a full decade. Yeah, I know, the Dems and the AARP will rage over that one.
So how about we tick off the Republicans, too, by cutting short this ridiculously irresponsible payroll tax cut or holiday or whatever they're calling it. Sure, the program's gonna dry up sooner if you pull the plug on whatever funding the thing's got left.
Now before you start flaming me as if I'm some kind of Howard Dean supporter, consider this: In 1935, the average U.S. life expectancy hovered at 61.7 years. In 2010, it had climbed to 78.7. We're living nearly a third longer than we used to. So, based on that math, even a humble one-sixth or so increase in the eligibility age seems conservative.
So here we are, making people wait longer for benefits while we restore the funding where it was before. The program's saved, and both parties are outraged. Guess what? Back in the day, that's what we used to call a compromise. Old school, I know, but it worked.
All of that being said…don't expect any movement – from either party – before November. You wouldn't want to screw up a good election, would you?
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