E.J. Dionne posits that the coming “Ryancare” enforced destruction of Medicare will either be Obama’s defining moment or the final end of progressive government in America:
Americans are about to learn how much is at stake in our larger budget fight, how radical the new conservatives in Washington are, and the extent to which some politicians would transfer even more resources from the have-nots and have-a-littles to the have-a-lots.
And you wonder: Will President Obama welcome the responsibility of engaging the country in this big argument, or will he shrink from it? Will his political advisers remain robotically obsessed with poll results about the 2012 election, or will they embrace Obama’s historic obligation — and opportunity — to win the most important struggle over the role of government since the New Deal?
And that’s exactly what this is. If you “privatize” Medicare, you are in effect creating a real live death panel for those individuals who cannot afford to pay the difference between the arbitrarily low payments (pegged to the dollar circa 2010) that will be made in the name of “cost containment.” Scare quotes there because such a move is categorically not cost containment; it is payment containment, or total government outlay containment, if you will. Costs will still rise, whether that rise is at the rate of inflation or at some other rate doesn’t really matter: the payments are locked, now and forever, to roughly today’s value. It is therefore only that fraction of individuals that are capable of paying the difference between real cost and subsidized value that will be “contained.” This number of individuals will, of course, be diminished day by day, year after year after year, as the subsidy represents lower and lower actual healthcare buying power. This is how Ryancare “works.” Hope you’ve been rather aggressive and uniformly successful with your by then privatized “Social Security” 401(k). Because you’re going to need it. Cat food doesn’t buy itself, after all. Otherwise, kindly go die in the streets.
In a decade or two, yes, even the very wealthy will begin to feel that pinch and there might be some movement to address the issue. But, by then, assuming all goes to Ryan’s master plan, tax revenue will have ratcheted to such historic lows (the other part of this “plan” is to limit next year’s spending to a fractional percent of the previous year’s, regardless of inflation and actual vs. projected economic output or overall economic conditions) that the federal government will have drowned itself in a teacup and will be laughably incapable and plainly impotent relative to doing anything about it. Problem solved! Think of how free we’ll all feel on that wonderful day!
And but so: do I think Obama will rise to this particular challenge? No I do not. Nothing coming out of the administration leads me to believe he or his advisers have any interest whatever in fighting for the future of Medicare, much less Social Security (which, having its own funding source, is utterly secure for decades to come: so Serious People all know that we must act now to destroy it because otherwise it won’t be there! This makes sense to our Beltway Punditocracy.). The administration and, by and large, The Body Democrat will remain in their defensive crouch, trying not to “screw up” 2012 with a lot of progressive mumbo-jumbo, because, as any Serious Person can tell you, those dozens of Tea Partiers that showed up in DC the other day are the ones that run the country, now and forever, without any regard to election results, polling data, or the stated wishes of the American People at large. Those 100k that showed up in the tundra of Wisconsin? Just out of town Union thugs. No reason to pay attention to them at all. They’ll only win in 2012 if ACORN steals the election for them.
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