I find it incredibly odd that we seem to have redefined Social Security and Medicare in our public discourse. Politicians on both sides now call them ENTITLEMENTS as if the participants are “entitled” to receive from the public largesse as a citizenship right.
This reframing opens the door to false and misleading arguments that these programs “cost too much,” are a “government expenditure,” promote “socialism” and produce out-of-control “big government.” By accepting this reframing proponents of these programs find themselves defending high costs, socialism and big government.
The truth is, however, that Social Security and Medicare are NOT entitlement programs funded by the Federal Governent.
Social Security and Medicare ARE insurance programs! Nearly all American workers and their employers pay “premiums” into the Federal INSURANCE Corporation (FICA) through a mechanism called the “Payroll Tax.” In the case of Social Security, when we move out of the workforce because of retirement, disability or the death of a contributing parent, we receive a benefit to supplement our income. Similarly, Medicare premiums are paid through the same “Payroll Tax” and we receive medical and healthcare benefits when we reach 65 or find ourselves disabled. In both cases, we receive the benefits because we have paid the premiums.
I suppose you could say we are entitled to the benefits just as we are entitled to the policy benefits of any other insurance we purchase, but this is not a handout from government largesse by any stretch of the imagination.
Now, it’s true that a very small number of American workers do not purchase Social Security. Some public workers, some government employees and others purchase coverage through other government provided and administered programs. And there are some who don’t participate for reasons of conscience or religious conviction. But! — If you don’t purchase the insurance, you are not elligible for the benefit.
We forget that before the great depression, there was no safety net for those forced out of the labor force because age prevented them from continuing to work. Poverty among the elderly was very deep and widespread because many simply lacked the resources or had family members able to provide for their support. Similarly, before Medicare, the elderly often suffered needlessly or died prematurely because they simply could not afford health insurance, were prevented from having insurance because of age or preexisting conditions or did not have access to affordable health care.
These two public insurance programs have reduced poverty among the elderly and provided health care for many at a time when they most needed it. And they do so because we purchase insurance and pay premiums throughout ouur working careers.
Entitlements? I don’t think so.
D Gene Kraus 