Donald Trump has been hammering Ron DeSantos over his prior stands on the big so-called “middle class entitlements,” Social Security and Medicare. “Don’t touch them” is Trump’s mantra, despite their well-known solvency problems. Washington Post columnist Henry Olsen has some advice for DeSantos. In Here’s a solution to DeSantis’s Social Security and Medicare conundrum, Olson advises:
Former president Donald Trump has been hammering Ron DeSantis over his past votes to significantly change Social Security and Medicare. The Florida governor and former congressman has attempted to wave away the attacks, but there’s a better way to counter Trump’s charges: Appeal to both GOP conservatives and populists by targeting entitlement benefits to those in need.
Social Security and Medicare both have a dirty secret: They spend tens of billions of dollars each year subsidizing well-to-do seniors who don’t need, or can pay more for, their benefits.
That “well-to-do seniors who don’t need it” can collect benefits that they paid for and were promised is not “dirty,” secret or not. It is what makes Social Security and Medicare among the fairest welfare state programs in existence. The fact that personal financial health is not a factor is what gives these fundamentally immoral programs at least an element of justice.
Social Security benefits are not means-tested; billionaire Elon Musk can collect Social Security when he retires. Similarly, Medicare’s hospital benefits (Part A) go to everyone on the same terms regardless of their finances. Premiums for Medicare’s outpatient and drug benefits (Parts B and D) are also only partially means-tested. The result is that millions of people who can pay full freight for their Medicare benefits don’t, and millions more use their Social Security benefits to top off their substantial private savings.
Whenever you hear the rich being targeted, you’ve encountered a hidden attack on the middle class. If you think cutting off the tiny handful of multi-billionaires would be enough to save Social Security and Medicare, you’re delusional. Elon Musk is window dressing. The real target is any responsible, frugal long-term planner who has earned a private pension, built up retirement savings like a 401k or IRA, or accumulated “substantial private savings,” whatever that means.
“Means testing” is short-hand for screwing the successful. It would destroy that element of justice. It would put everyone at the mercy of government authorities who would judge your “need,” and thus your worthiness to collect these benefits—and deny you if you are flagged by some statistical formula. You paid in hundreds of thousands of dollars over your working life, without your consent, depriving you of your right to use your own money as you judge best? Too bad. We’re going to deprive you of your promised benefits. Olsen suggests $100,000 of “non-Social-Security income” as the cutoff, after which your benefits would begin to be reduced and your premiums rise. But why not $75, 000, or $50,000? Pick your number. That Elon Musk’s benefits are treated the same as everyone else is a moral positive, not a program vice. Once you’ve cut off the Elon Musks of the country from their rightful benefits, you’ve opened the door to attacks on all retirees with savings. Olsen admits as much: “Millions of people who can pay full freight for their Medicare benefits don’t,” he writes, “and millions more use their Social Security benefits to top off their substantial private savings.”
Millions! Don’t delude yourself into believing that you are not one of those millions. The best protection for your earned and paid for promised benefits is to leave Elon Musk’s benefits alone.
Social Security and Medicare are in deep trouble. They should be reformed. I’d start with personal accounts as a step on the way to elimination. But any reforms must be fair, and not include more draconian means-testing in addition to the limited means-testing already in the programs. It’s a matter of justice.
Related Reading:
The “Personal Account” Path to Ending Social Security
Your 401(k) - Obama’s Next Target
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