Further proof at the link, if any were needed, that Lieberman’s proposal to raise the age of Medicare eligibility makes no sense in financial terms.
One thing that is rarely mentioned when these issues are discussed is the effect that raising eligibility ages has on the young. This is an issue, however, about which the young themselves, and their parents ( I can testify to this) are acutely aware. Many people who have reached the age of 65 are ready and willing to retire and make way for the younger generations. The problem is, they are often not able, and will be even less able under this proposal. Not able to survive on the early retirement benefits that social security pays to early retirees, and not able to pay the cost of private medical coverage. Being rational actors, they do what Joe wants them to do, slave away at their jobs so they can have insurance in case disaster strikes.
Meanwhile, young people entering the labor force are facing the worst job market in years, which will only be made worse by the Liebermandate that we must now work until we are 67 or dead. Rational people, such as Jamie Galbreath, have suggested that it makes more sense to reduce the age of eligibility for these programs. It would be, in effect, a massive stimulus program, getting money into the pockets of both those retiring and into the pockets of the underemployed or unemployed young, all of which, rather than being socked away into some hedge fund manager’s bank account, would be spent, thereby creating economic activity. See here for more on this issue.
On a related issue, David Kurtz at TPM makes the valid and what should be obvious point that all of the debt ceiling plans are being scored for how much money they would save, but none are being scored for how many jobs they would destroy.
Congress has consumed itself arguing and posturing about how to further destroy the economy, but hasn’t spent a minute talking about trying to do anything about the single most important economic problem we face. Since both sides have entered into the austerity debate with gusto, both bear responsibility (in varying degrees it’s true ) for the sorry place in which we find ourselves.
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