Great Interpretation of Two Views: The Future Of Medicare

Mankiw at Harvard presents a great view of the two visions of Medicare. Strange how the deficit has suddenly been focused on one issue, the old folks! Everyone seems to feel it is open season on this one issue, albeit an important one. "Kill grandma" may now become acceptable.

But why are we having such a deficit! Medicare was and is an insurance program and perhaps it should be run that way. Instead it is run like a piggy bank. The truth of the matter is that using January 2008 employment data we have a 12.8% unemployment from a 4.5% number and that is a lot less tax revenue. True fact, and the problem is not all Medicare.

So perhaps we reform Medicare; increase the 3% to 4% and move the eligibility date to a rolling 10 years before the average age of death of the recipients, increase the monthly fee to be 3% of the gross annual income number and use a 30% deductible. That not only save the program but makes money. Perhaps we have a non-Governmental agency do this. Then again such a thought is from an engineer not an economist, one who has started and run companies, not played politics. By the way, China is still  run by us engineers!

Then there is DoD and the rest of the Washington mess. Just look at DoE, Education, DoT, and the list goes on! Why pick on Medicare? Because they think the old people will just die. Watch out, they may live a long time, and remember!