The New York Times postulates on ideas to fix Medicare on Sunday’s editorial page. They devoted 1096 words without getting to the heart of the demographics involved. For instance, one of their solutions is to slow Medicare growth to the rate of economic growth.
“The only way to make Medicare sustainable is to have it grow at the same rate as the economy that provides the tax base to support it.”
This would make sense if the senior population were stable. The problem is that this group is growing as more baby-boomers enter retirement age and living longer once they get there. We have to make plans for Medicare and Social Security to become an ever larger part of our economy. The country must increase productivity to maintain our wealth or risk a Greek-style revolt.
The real coming problem will be the growth of Medicaid through the Affordable Healthcare Act. This will transfer health costs to the states that they can ill afford.
The best fix to this problem is a growth economy spurred by lower taxes and less regulation. The tax base increases as productivity and profits grow. This economic expanse will provide the funds to help our seniors.