Putting a Stake Through the Retirement Age Zombie

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A few days ago I wrote about the perennial popularity of raising the retirement age for Social Security and Medicare. It’s a bad idea that doesn’t save very much money, is savagely unfair to the poor, and in the case of Medicare, does nothing to rein in cost growth, which is our biggest problem. But it’s an easy sound bite, so it sticks around forever even though there are loads of better ways of addressing entitlement spending.

Here’s a nice little chart from CBPP (based on data from the Kaiser Family Foundation) that illustrates this for Medicare. Here’s what it shows:

  • If the Medicare eligibility age were raised to 67, it would produce net savings of $5.7 billion. That’s a whopping 1% of total Medicare spending. The reason the number is so low is that a lot of 65-66 year-olds would end up on Medicaid or in Obamacare’s subsidized healthcare exchanges. The feds pay either way.
  • But wait! Although the federal government would save a bit of money, employers would end up spending $4.5 billion more and seniors themselves would spend $3.7 billion more.
  • In the end, the federal government would end up with only tiny savings, and those savings would be more than made up by higher spending elsewhere. The net effect on the healthcare system as a whole would be an increase of $5.7 billion, not a decrease.

This is just a bad, bad, zombie idea. It might be worth arguing over the methodology here if the numbers were big enough to matter, but they aren’t. Even in the best case, raising the Medicare eligibility age would have an insignificant effect on the federal budget.

The more time we spend on this, the less time we’re spending on ideas that might actually accomplish something. It’s time to move on.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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