While attention in Washington focuses on the 800-pound gorilla in the room -- the war in Iraq -- Congress continues to ignore the 10-ton dinosaur waiting out in the cold -- the nation's Social Security and Medicare programs.
Without course corrections now, both programs in 20 years will be near bankruptcy and a generation of baby boomers who will retire over that time will find themselves short of the aid they thought they'd get in retirement.
For those who have done themselves well over a career, it probably won't matter. They will be rich enough to provide for their care until death. But for the vast majority of Americans, even what seems as a comfortable retirement "pot" now will be peanuts in 20 years when rising health care costs, especially for elder care such as nursing homes, drains those pots in months, not years. Also, those not able to squirrel away large amounts of today's income into IRAs will depend on Social Security to live -- provided it's there. In 1950 the taxes of 16 workers supported each retiree; today, it's three workers for every beneficiary; and today's 20-year-old will retire with two workers for every beneficiary.
Social Security, Medicare and Medicaid costs are projected to account for 19 percent of the gross domestic product by 2050, meaning that Congress could cut every other government program -- defense, education, homeland security and anti-poverty programs -- and still not have enough to offset costs.
President Bush, in his 2008 budget, recognizes the problem but does not address it. He continues to push for his plan to privatize Social Security, which the nation and majority of Congress has dismissed.
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Perhaps an option is a new bipartisan bill introduced last week whose co-authors range from Sen. Norm Coleman, R-Minn., to Sen. Dianne Feinstein, D-Calif.
The Social Security and Medicare Solvency Commission Act would create a permanent commission to make recommendations to ensure that both programs remain viable into the future. While we're not necessary a proponent to create a commission each time politicians want to sweep a problem under the rug, making this commission permanent will put everyone's feet to the fire well into the future and continue to monitor the long-term financial stability of both entitlement programs.
The proposed commission would consist of members of Congress and outside experts who would first make recommendations in one year, and then every five years after that. It would be required to hold town hall meetings across the nation, and create a timeline for congressional action, from committee to floor action to conference committee action.
Keeping these programs solvent and available for future Americans who will need them as a lifeline is truly the heavyweight waiting just outside. We must consider and take action now.
