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Home Publications Blogs Beat the Press The Democrats Don't Have a Plan To Cover A Medicare Shortfall Arising in Just 13 Years That Is Equal to One-Fifth of the Increase in Annual Defense Spending Since 2000!!!!!!!

The Democrats Don't Have a Plan To Cover A Medicare Shortfall Arising in Just 13 Years That Is Equal to One-Fifth of the Increase in Annual Defense Spending Since 2000!!!!!!!

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Thursday, 26 May 2011 05:04

The Wall Street Journal tells us that:

"Republicans argue that Mr. Obama and the Democrats have no plan to rescue Medicare, despite estimates that it will be unable to pay out full benefits beginning in 2024."

It then gives us the Democrats' response, making it a he said/she said. It would have been helpful to inform readers about the projected gap in Medicare funding so that readers know what it would mean to "rescue" Medicare from a shortfall that it is first expected to face 13 years in the future.

The Medicare Trustees put the projected shortfall at 0.79 percent of payroll, which is approximately 0.27 percent of GDP over the program's 75-year planning horizon. By comparison, the increase in annual spending on the military between 2000 and 2011 was more than 1.6 percentage points of GDP. This increase in spending did not cause serious harm to the economy, therefore increased spending of one-fifth this size will presumably not be a major problem.

Comments (6)Add Comment
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written by izzatzo, May 26, 2011 7:04
Exactly. Medicare spending should be allowed to attain the same standard of Pentagon spending of one million per soldier, at one million per patient.
Lunacy once again
written by Bill Turner, May 26, 2011 8:41
Izzatzo implies that increasing Medicare will eventually lead to outrageous costs. Countries with much more socialized medicine, and better outcomes, have a lower cost per patient. His assertion does not stand, especially if lunatics get out of the way of real medical reform.
..., Low-rated comment [Show]
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written by ComradeAnon, May 26, 2011 9:27
Ayn, then why did you "steal" healthcare to have lung cancer treatment? How about a little personal responsibility? And when are you going to return all the Social Security benefits you received?
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written by bmz, May 26, 2011 4:50
Rescuing Medicare is actually easy as long as we do the opposite of what the Republicons propose: rather than privatizing Medicare, socialize it. The Veterans Administration's healthcare system is fully socialized; and is the highest rated healthcare system in the US as well as costing only two thirds as much as private healthcare. See--it is easy!
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written by BigH, May 27, 2011 10:26
its pretty straight forward...the Elderly do not contibute as much as consumers unless it is healthcare...so the republican corporate puppets need to find a way to make a profit off of them....if not let them die and recylce thier property back into the profit machine

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

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