Wednesday, September 2, 2009

Baby Boomers - Social Security and Medicare

Seventy million baby boomers born after World War II are now beginning to retire. This generation was among the most productive in human history. As such, we paid big dollars into our 401K Plans, Social Security and Medicare believing that some day these monies would be there to support our retirement. And, because we were extremely good to our children, maybe too good, we used our home equity lines of credit to finance college educations for our kids and the good life. Consequently, many Baby Boomers are still making house payments after retirement assuming they are even able to retire. Things might have been all right anyway, but President Lyndon Johnson and the Great Society came along. It was during Johnson's Presidency that the federal government first began "borrowing" (really stealing) from the Social Security Trust fund to pay for the federal government's current operating expenses. That practice is still in place today.

The federal government takes all Social Security and Medicare contributions and to the degree that anything is left over, after making payments to current retirees, provides an IOU to the Social Security trust fund. These IOU's have piled up for years so that now Social Security has an unfunded liability of about $44 Trillion and Medicare is $10 Trillion in the hole. Both of these programs are actually bankrupt because politicians basically stole the money contributed by Baby Boomers for Social Security and Medicare and used it to get re-elected by funding social programs and pork barrel projects.

Baby Boomers worked very hard to provide Social Security and Medicare benefits to the Greatest Generation, our parents, that fought World War II and who got a great return on their contributions. In fact, comparatively our parents paid in very little for Social Security and Medicare and got out huge sums of money in cumulative terms because they have lived a long time and senior citizens vote. And, the presumption is that a younger generation would have funded the payments that should have gone to the Baby Boomer generation. It really is one big pyramid scheme. It might have worked accept for the 20 million babies that suffered abortion after 1971. This lost generation is not here to fund Baby Boomer's retirements. So now what?

President Obama knows very well that the money is just not there to provide Social Security and Medicare benefits for Baby Boomers and to fund all the socialist programs he plans for America under the banner of "transformational change". Obama believes in redistribution of income. The President wants to take from the 50% of people who pay taxes and give to the 50% of people (his Peeps) that pay no income taxes at all in order to "spread the wealth". But he can't do it without dealing with the Baby Boomer problem. 40% of all medical expenses in this country happen in the last year of life. Obviously, this results in hundreds of billions of dollars going to fund Medicare and senior citizens' health care each year. Obama is not worried about current seniors who are 75 years or older. The President knows that they will be gone sooner than later. Obama is very worried about those who are 55 and older, the Baby Boomer generation which is the reason he is proposing the HealthScare Program which absolutely will result in the rationing of care.

This week my 89 year old mother had a Mammogram which apparently is done annually. I must admit I questioned the need for the test at her age. A year ago she had hip surgery. You can bet that under ObamaCare, these tests and procedures will not happen passed the age of 75. Obama needs Baby Boomers to die sooner than later because the money is not there to fund either Social Security or Medicare. Remember, politicians since Lyndon Johnson, of both parties, stole it. Under the Obama's HealthScare Plan passed by the US House of Representatives, a HealthScare Commissar will establish the rules governing what procedures will be provided by either insurance companies or the government Medicare and Medicaid programs. Clearly, Baby Boomers will be denied procedures deemed too costly. Doing so will lead to earlier deaths which kills two birds (Social Security and Medicare Liability) with one stone.

The Obama Administration is projecting a $9 Trillion deficit in the next ten years which is likely to be much higher. This does not include the unfunded Trillions of dollars needed to fund Social Security and Medicare for Baby Boomers. And, even though we have paid and paid and paid, there is likely to be means testing to deny many Baby Boomers these benefits. In essence, both Social Security and Medicare will become nothing more than a welfare program for the poor. In fact, a few years ago the federal government added a little asterick to the Social Security statement that we receive each year saying that the benefits indicated are not guaranteed. So the probable monthly Social Security payment listed in our individual statement if we retire at age 62 or 65 is bogus. Many Baby Boomers are going to get little or nothing even though our contributions over the years have been huge. Just wait and see.

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