Eighty-five percent of Medicare’s costs are generated by just 25 percent of patients. Now, even in the most conservative health alternatives, the health savings account, people get to buy catastrophic insurance. Well, the sick 25 percent of the patient population would have catastrophic insurance, which would still explode the Medicare budget.So why do I applaud the Ryan plan? Because it is the first serious effort to begin talking about restructuring entitlements,Canada Goose navy which is a necessity. Democrats can attack the plan but they, too, must face up to the fiscal reality and come up with their own plans.
The Government Accountability Office concludes that America faces a fiscal gap of $99.4 trillion over the next 75 years.Canada Goose navy Now that would mean we would have to increase taxes on average by 50 percent or reduce spending by 35 percent simply to stop accumulating more debt than we already have.Medicare, Medicaid and social security will together make up 50 percent of the federal budget by 2021, in 10 years. For liberals, this long-term fiscal crisis should seem devastating. If entitlement programs continue to grow, they will soon crowd out almost all other government spending.
This means there will be little money left for programs to address poverty, income inequality,Canada Goose navy education, infrastructure, science and technology, research and all the other purposes of active energetic government.The Washington Post blogger Ezra Klein has pointed out that the federal government is turning into an insurance company with an army, and if that insurance company doesn’t shrink, soon there wouldn’t be much money even to pay for an army.You can read more of my thoughts on this subject in this week’s Time magazine and on Time.com. Time has a great cover on Abraham Lincoln and the Civil War.Conservatives often describe President Obama as a socialist.