With the current administration deadlocked in issues such as wars in the Middle East and healthcare reform, one ominous concern surely looming on the eve of 2010 is the subject of the social security. Social Security is a social insurance program funded through payroll taxes, and it provides benefits for retirees and the disabled. The subject of the matter is that the Social Security Administration (SSA) has projected that the Social Security funds will be depleted by 2037. This is especially alarming because it is a four year decrease (from 2041 to 2037) since 2008.
Despite the social benefits these entitlement payments provide to its recipients there are many problems that must be addressed with the program to ensure to its longevity. As stated before, the program may dry out completely; this in part because of an influx of Baby Boomers retiring while the number of paying workers decreases. These recipients are receiving benefits for a longer amount of time because the average life expectancy is increasing. To add to this, the current recession has contributed heavily to the rise in the unemployment rate, greatly hindering the program’s ability to earn much needed income through payroll taxes. Faced with increasingly harder times, many workers are opting to retire early and claim benefits. In 2009, the SSA has found that 2.57 million people have requested benefits, an 18% increase from the previous year. The number of those applying to receive disability payments has also increased, up 16% (2.6 to 3 million) from the previous fiscal year. To add fuel to the fire, a 2009 report released by the Social Security Board of Trustees estimates that benefits paid out will exceed revenues by 2016. This information, in conjunction with the fact the $2.4 trillion currently in the Social Security reserves are essentially government bonds, makes the future for the program look quite dire.
The current state of the economy and the current operations of the program are not conducive to the survival of Social Security. Even if the condition of the economy lets up, the present path the program is on will inevitably see to its demise. What must happen in the following months is that the Obama administration must take a hard stance on the issue and actually produce a long-term plan to fixing Social Security. Many of the ideas presented thus far are “short-term efficient” and would not fix the overall problem.
There are many small initiatives that can be taken during the course of reform. For one, the government may raise the Social Security payroll tax from 12.4% to 15%. This would increase the income going into the program. They may also increase the age for retirees receiving benefits from 67 to 70, which would decrease the payments going out of the program. While these are direct initiatives, they could also carry out indirect initiatives that would help sustain the program. The government could provide higher tax rebates and credits for families with multiple children. The idea of doing this is to encourage couples to have families. More children will of course add to the workforce later on. Fostering education and the development of new technologies within the US would surely bolster the workforce with new and brilliant minds. A competitive American workforce will lead to economic prosperity.
While these ideas may not be the outright solutions to the problem, it is agreed on both sides of the aisle that there must be something done. In its current state, Social Security does not have a fighting chance. Through strict measures of reform, the program may be able to dig its way out of potential financial ruin. Only then will the younger Americans of today’s workforce receive the entitlements payments they will eventually deserve.
Bibliography:
• “The next great bailout: Social Security,” Allan Sloan, CNNMoney.com
http://money.cnn.com/2009/07/29/news/economy/fixing_social_security.fortune/index.htm?postversion=2009073009
• “Forecast: Social Security to be depleted in 2040,” Associated Press
http://www.msnbc.msn.com/id/12580846//
• “Alarm Sounded On Social Security,” Amy Goldstein; the Washington Post
http://www.washingtonpost.com/wp-dyn/content/article/2009/05/12/AR2009051200252.html
• “Social Security Applications Almost Double Because of Recession,” Jonathan D. Salant; Bloomberg.com
http://www.bloomberg.com/apps/news?pid=20603037&sid=auyVsU9FRcts
• “Kiss Retiring At 67 Goodbye,” Joshua Zumbrun; Forbes.com
http://www.forbes.com/2009/05/12/social-security-taxes-business-washington-retirement.html
Saturday, February 20, 2010
The Legend and The Fall
The Legend and the Fall
“Long gone are the days of a golden bounty. The red that streamed from your bloodshot pores have dried up and are since then a mere memory. The wistful gust has swept you and your likeness away from the gaze of the watchful eye. Long live your glory. Fore another, like you, will rise up to take your place then inevitably Fall to meet a parallel fate. They say your type will come again every once in a while, but to me it will never be the same. “
--PJA
The year is 1995. It was a year that embodied the spirit of creativity with the birth of “Yahoo!” and the release of Windows 95, but it also was marred with tragedy in the wake of the Oklahoma City bombing and the ethnic cleansing of the Bosnian War. While a set minority of Americans was self-aware and consequently glued to their television sets and newspapers, the majority went about business as usual. They worked the usual 9-5. Breakfast, lunch, and dinner; 24/7. It was nothing compelling, just the daily routine.
Flash forward to the Fall. Basketball season had commenced, and as a 10 year old boy I was giddy with excitement. I was excited for two reasons: one, Michael Jordan had returned to basketball; and two, I was finally figuring out what it meant to truly be a “fan.” I remember fondly when my mother bought me my first pair of “MJs.” I thought I was the coolest kid on the block walking around in a Pippen jersey and my Jordan X’s. Looking back, this was my routine. Every other day I would wake up with excitement, anticipating watching my beloved Chicago Bulls. As I tuned in to WGN in the middle of the day, I would patiently wait and watch whatever was scheduled for programming that season. Cubs’ game, Family Matters, Bulls. This was my 9-5. Little did I know that I would be privileged enough to witness the greatest athlete at the pinnacle of his career take arguably the greatest assembled sports team on the brink of history.
Flash forward further into 2001. What happens now? 9/11, W. Bush, and Wikipedia among other things. Since that incredible 72-10 season the Bulls went on to win two more championships, MJ retired, and then unretired. Now a guard with the Washington Wizards, MJ’s diminished capacity is evident as his stats begin to plummet each year. The 1995-96 season was the last time Jordan managed over 30 points per game. At this point in his career one would ask, “What more does he need to prove?” Long before the 2001 season started he was already a six-time NBA champion, a five-time MVP with countless other accolades and superlatives, all the while with praise and recognition from his supporters and opponents alike. Yet there he was-- a broken, albeit determined old general refusing, in all his stubbornness, to hand over the torch to the new generation.
As a young fan I was angry. I was angry because I loved my team, but he was no longer on it. I was angry because I loved my player, but he was no longer him. It took me a while to learn that it wasn’t truly anger, but passion. With passion, you become emotional, and when you’re emotional, well you tend to do or say things that you probably wouldn’t otherwise. And that’s when I realized it. These players are exhibiting the same passion as I was. The only difference is that I am living vicariously through them. Whenever they win, I win. Whenever they fail, it feels twice as worse because it was beyond my control.
Towards the end of Michael Jordan’s career we all knew his celebrated story would come to a close, but we still longed for the chapters of glory and supremacy. Much to the chagrin of many of MJ’s followers, he continued his career until the end of the 2002-03 season. After all was said and done it beget the question “Did he tarnish his legacy by playing past his prime?”
There are a number of players and fighters that suffer from this unrequited love of the game; Brett Favre, George Foreman, and Nolan Ryan come to mind but are only a few. These athletes served as pioneers and ambassadors to their respective sports. These are the same sports, and we are the same fans, that held them high on their idol-like pedestals yet shunned them when they could no longer perform the same feats that we had grown accustomed too. While their bodies have failed them, there is no denying the perseverance and determination of these “over-the-hill” competitors.
These athletes “stay behind” for a number of reasons. Whether it is for the money, the fame, the glory, or what have you, it is essentially a matter of “to each his own.” However, finding this definitive point of the end is as dramatic as the storied careers of these so-called legends. Does he or she lose “it” when they can no longer perform physically? Or, do their hearts give out because their love for the game had painfully faded away. Even still, there is the possibility that the game has simply evolved beyond them. What ever the reason, we should not try to expedite the explosion of a dying star when it is beyond our reasoning and against our deepest wishes.
But beyond the circus of celebrity stardom and the fanatical romance there are a small handful that seem to be an exception to the rule. The unwritten rule that states an athlete must hang it up when old age and a slump inevitably collide. As the supposed Fall passes, these competitors manage to Spring forth with life anew, akin to the Phoenix rising from its ashes. Through ignorance, pride or perhaps both, these athletes are reborn with a new sense of hunger for greatness or glory. It is as if it was never tasted before. The aforementioned Brett Favre posted his best statistical season in his “last” (well is it really?) season with the Minnesota Vikings. He did not set personal bests when he was in his “prime” with the Green Bay Packers. Even the “old timers” are managing a comeback. Take Randy Couture, for instance. He is a veteran of mixed martial arts, a decorated collegiate athlete, a five-time world champion in the UFC, and he is 46 years young. His drive and conditioning is astonishing as he continues to win fights decisively.
These superstars cannot rely on a big heart and sheer tenacity alone. Today’s medical advancements and nutritional regimens have afforded these athletes with something they long pined for—Time. Just a little more time for one more play, one more game, one more fight. In conjunction with medical breakthroughs, these standards have become mortal barriers that can be broken with the gift of athleticism and the values of hard work and determination.
However, regardless of longevity, they must one day halt their daily routine and transition into the daily matter we call life. “When that will be” is a question that should be answered by them in spite of how we feel as fans. If I were to tell these heroes one thing it would be “listen to your body but follow your heart.” And if I were to tell my fellow fans one thing it would be “enjoy it while it lasts because you will never remember anyone else who made you feel this great about the game.” There will never be as great a sunshine we had experience when you played the game, or when you fought the fight. And even as we continue to stand as dusk falls, we yearn for the sun rise that made us feel appreciated. We yearn for that defining moment in your career where you had us say “This is it. It doesn’t get any better.” When night falls and relevancy fails you, all I can say is I love you and thank you.
--PJA
“Long gone are the days of a golden bounty. The red that streamed from your bloodshot pores have dried up and are since then a mere memory. The wistful gust has swept you and your likeness away from the gaze of the watchful eye. Long live your glory. Fore another, like you, will rise up to take your place then inevitably Fall to meet a parallel fate. They say your type will come again every once in a while, but to me it will never be the same. “
--PJA
The year is 1995. It was a year that embodied the spirit of creativity with the birth of “Yahoo!” and the release of Windows 95, but it also was marred with tragedy in the wake of the Oklahoma City bombing and the ethnic cleansing of the Bosnian War. While a set minority of Americans was self-aware and consequently glued to their television sets and newspapers, the majority went about business as usual. They worked the usual 9-5. Breakfast, lunch, and dinner; 24/7. It was nothing compelling, just the daily routine.
Flash forward to the Fall. Basketball season had commenced, and as a 10 year old boy I was giddy with excitement. I was excited for two reasons: one, Michael Jordan had returned to basketball; and two, I was finally figuring out what it meant to truly be a “fan.” I remember fondly when my mother bought me my first pair of “MJs.” I thought I was the coolest kid on the block walking around in a Pippen jersey and my Jordan X’s. Looking back, this was my routine. Every other day I would wake up with excitement, anticipating watching my beloved Chicago Bulls. As I tuned in to WGN in the middle of the day, I would patiently wait and watch whatever was scheduled for programming that season. Cubs’ game, Family Matters, Bulls. This was my 9-5. Little did I know that I would be privileged enough to witness the greatest athlete at the pinnacle of his career take arguably the greatest assembled sports team on the brink of history.
Flash forward further into 2001. What happens now? 9/11, W. Bush, and Wikipedia among other things. Since that incredible 72-10 season the Bulls went on to win two more championships, MJ retired, and then unretired. Now a guard with the Washington Wizards, MJ’s diminished capacity is evident as his stats begin to plummet each year. The 1995-96 season was the last time Jordan managed over 30 points per game. At this point in his career one would ask, “What more does he need to prove?” Long before the 2001 season started he was already a six-time NBA champion, a five-time MVP with countless other accolades and superlatives, all the while with praise and recognition from his supporters and opponents alike. Yet there he was-- a broken, albeit determined old general refusing, in all his stubbornness, to hand over the torch to the new generation.
As a young fan I was angry. I was angry because I loved my team, but he was no longer on it. I was angry because I loved my player, but he was no longer him. It took me a while to learn that it wasn’t truly anger, but passion. With passion, you become emotional, and when you’re emotional, well you tend to do or say things that you probably wouldn’t otherwise. And that’s when I realized it. These players are exhibiting the same passion as I was. The only difference is that I am living vicariously through them. Whenever they win, I win. Whenever they fail, it feels twice as worse because it was beyond my control.
Towards the end of Michael Jordan’s career we all knew his celebrated story would come to a close, but we still longed for the chapters of glory and supremacy. Much to the chagrin of many of MJ’s followers, he continued his career until the end of the 2002-03 season. After all was said and done it beget the question “Did he tarnish his legacy by playing past his prime?”
There are a number of players and fighters that suffer from this unrequited love of the game; Brett Favre, George Foreman, and Nolan Ryan come to mind but are only a few. These athletes served as pioneers and ambassadors to their respective sports. These are the same sports, and we are the same fans, that held them high on their idol-like pedestals yet shunned them when they could no longer perform the same feats that we had grown accustomed too. While their bodies have failed them, there is no denying the perseverance and determination of these “over-the-hill” competitors.
These athletes “stay behind” for a number of reasons. Whether it is for the money, the fame, the glory, or what have you, it is essentially a matter of “to each his own.” However, finding this definitive point of the end is as dramatic as the storied careers of these so-called legends. Does he or she lose “it” when they can no longer perform physically? Or, do their hearts give out because their love for the game had painfully faded away. Even still, there is the possibility that the game has simply evolved beyond them. What ever the reason, we should not try to expedite the explosion of a dying star when it is beyond our reasoning and against our deepest wishes.
But beyond the circus of celebrity stardom and the fanatical romance there are a small handful that seem to be an exception to the rule. The unwritten rule that states an athlete must hang it up when old age and a slump inevitably collide. As the supposed Fall passes, these competitors manage to Spring forth with life anew, akin to the Phoenix rising from its ashes. Through ignorance, pride or perhaps both, these athletes are reborn with a new sense of hunger for greatness or glory. It is as if it was never tasted before. The aforementioned Brett Favre posted his best statistical season in his “last” (well is it really?) season with the Minnesota Vikings. He did not set personal bests when he was in his “prime” with the Green Bay Packers. Even the “old timers” are managing a comeback. Take Randy Couture, for instance. He is a veteran of mixed martial arts, a decorated collegiate athlete, a five-time world champion in the UFC, and he is 46 years young. His drive and conditioning is astonishing as he continues to win fights decisively.
These superstars cannot rely on a big heart and sheer tenacity alone. Today’s medical advancements and nutritional regimens have afforded these athletes with something they long pined for—Time. Just a little more time for one more play, one more game, one more fight. In conjunction with medical breakthroughs, these standards have become mortal barriers that can be broken with the gift of athleticism and the values of hard work and determination.
However, regardless of longevity, they must one day halt their daily routine and transition into the daily matter we call life. “When that will be” is a question that should be answered by them in spite of how we feel as fans. If I were to tell these heroes one thing it would be “listen to your body but follow your heart.” And if I were to tell my fellow fans one thing it would be “enjoy it while it lasts because you will never remember anyone else who made you feel this great about the game.” There will never be as great a sunshine we had experience when you played the game, or when you fought the fight. And even as we continue to stand as dusk falls, we yearn for the sun rise that made us feel appreciated. We yearn for that defining moment in your career where you had us say “This is it. It doesn’t get any better.” When night falls and relevancy fails you, all I can say is I love you and thank you.
--PJA
Friday, February 19, 2010
Will the Public Option "Bend the Curve?"
In the midst of the current healthcare system crisis, where drug and insurance premiums are on the rise and a growing number of sick patients are being denied health insurance, politicians on capital hill are battling over the controversial issue of healthcare reform. One hotly, contested tested resolution to healthcare reform would be the idea of activating a public option for health insurance. The public option is essentially a government-run health insurance plan designed to compete with private insurance plans. While the idea of a public option is to keep private insurers in check, many Americans will still have the choice of staying with their initial carrier if they are cheaper. In spite of the bill’s good intentions to provide the uninsured and underinsured with an affordable option, the real topic of debate is whether or not the public option will actually lower health expenses. In other words, will it bend the curve, so to speak?
Like most ideas in theory, the public option seems like a viable alternative to the current private-run industry. An insurance plan with the full backing of the government would be able to operate on such a grand scale that it would have greater leverage when negotiating prices with healthcare providers (e.g. physicians, hospitals). Public option or not, it is quite evident that the American people are in dire need of health reform, especially on the heels of an economic recession. According to the Henry J. Kaiser Family Institute, a non-profit research leader in health policy and communications, “family health premiums rose to $13,375 annually in 2009 Up 5% as inflation fell nearly 1%.” In 10 years time, premiums have increased an astounding 131%, nearly three and a half times more than workers’ wages (increased by 38 percent since 1999) and nearly five times that of inflation (an increase of 28 percent since 1999).
Yet despite the promise a public option holds, there are some that will argue that the premiums will actually increase under a government-run plan. According to the Congressional Budget Office, “The public plan would have lower administrative costs than those private plans but would probably engage in less management of utilization by its enrollees and attract a less healthy pool of enrollees.” If the government implements its own version of an insurance plan then will have to abide by a higher standard of care much to its own undoing. They will not turn away the very sick and incurable, and they will not engage in cost-minimized manage care. Consequently, the government will have to spend more to accommodate is consumers. As a result, the small minority of Americans that actually choose the public option will experience higher premiums.
Government-run healthcare may also place a deadweight loss on society. Government premiums would essentially act like a binding price ceiling, causing a downward pressure on quality as a result. Because private insurers are forced to compete by lowering their prices they will decrease the quality of care. To add to this, many physicians will leave the industry as a result of not being able to sustain business operations.
To go back to my original question--a public option for healthcare will in fact bend the curve, but in the wrong direction. These are unintended consequences as a byproduct of government intervention. Government efficiencies will cause inefficiencies elsewhere. For instance, a decrease in administrative costs may appear to lower healthcare costs in general, but these costs are actually intended to try and improve the quality of healthcare and insurance. Bureaucracy costs and stagnation of government will further add to the unnecessary costs of healthcare on society, while increasing the suffering of many consumers. A public option may allow many Americans to gain access to “affordable” insurance, but will do so at a greater cost to society. There must be healthcare reformation in order to fix the current system, but a government-run plan, in its current state is not the only option.
Bibliography:
· 2009 Employer Health Benefits; The Kaiser Family Foundation
· “Will the public plan have higher premiums than private insurance?” Ezra Klein, Washington Post
· “Fannie Med?” Why a Public Option is Hazardous to your Health,” Michael F. Cannon
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