Crisis In Social Security, Medicare Can't Come To Head Soon Enough

From Ibdeditorials.com

Between now and then, the drain on the rest of government will occur invisibly. The inadequate trust funds will steadily diminish. The government bonds in these trust accounts will be presented to the Treasury for payment. Those payments can be financed in only three ways: bigger deficits, higher taxes or spending cuts.

But without a genuinely forcing event — something requiring a response — presidents and Congresses sidestep the underlying choices. They profess concern, but their proposals are cosmetic, ineffectual or both.

"We must save Social Security for the 21st century," proclaimed Bill Clinton. "The system . . . on its current path, is headed toward bankruptcy," warned George W. Bush. Now, Barack Obama seems to be reverting to this familiar form.

"What we have done is kicked this can down the road," he told the Washington Post. "We are now at the end of the road." Great rhetoric — but that's all. Although no one expects Obama to have a grand blueprint after just four months, he has yet to signal even general support for needed policies: gradual increases in eligibility ages; gradual benefit reductions for wealthier retirees; a fundamental overhaul of Medicare.

Indeed, Obama's plans to expand government-paid health insurance might increase Medicare spending by aggravating medical inflation.

Like General Motors, we continue bad habits because we can — temporarily. Procrastination is a bad policy. The longer changes are postponed, the more wrenching they will be. The hurt for retirees and taxpayers will only grow with time.

Social Security last faced a forcing event in 1983, when a dwindling trust fund prodded Congress to make changes. The lesson: A "crisis" is just what we need.