Welcome to the October Law and Business issue of NorthBay biz magazine.
It’s now been more than six months since the $787 billion “stimulus” package was steam-rolled through Congress amid cries of, “This is an emergency of the highest order!” “You must vote yes today!” “We can’t waste time reading the bill!” “The American way of life will end if we [Congress] don’t act immediately!”
So, how’d that work out? Anyone out there feeling any positive effects from the “pork package” that was going to cure all that ailed us? This huge infusion of cash was guaranteed to create a minimum of three million jobs and keep unemployment under eight percent. Well, here we are in September, and more than two million jobs have been lost and unemployment has soared into double digits.
Amid takeovers, bailouts and riding roughshod over the Constitution in general, the federal government has managed to roll up, in less than a year’s time, more debt than was accumulated in the entire 200-plus-year history of the country. Projections are that we’ll rack up an additional $9 trillion in deficits over the next ten years.
Now, about to be thrown in on top of this abyss of debt is the newest in a series of government entitlement programs—health care for the 47 million people in this country who can’t afford or simply refuse to buy it. At what cost? Why, only another $1 trillion over the next ten years according to White House estimates. (Other estimates predict the cost to be closer to $3 trillion.)
Let’s shift gears for a moment and talk about Social Security. All of us are mandated to pay into Social Security to fund our retirement. On every payday of our work life, 6.2 percent is deducted from our wages and matched by our employer for a total of a 12.4 percent contribution. Now, let’s do a little math—for the average American who earns $53,000 and has a 45 year work career, that’s almost $300,000 in contributions. (It’s also ignoring the interest you would have earned had you invested the money yourself over that time span.) So, after a lifetime of these enforced contributions, what can you expect to collect once you retire? Approximately $1,400 per month or $16,800 per year. If you live long enough, you might just get back the money the government appropriated from your paychecks. What a great plan! It’s a relief to know once we hit retirement age, all our financial worries are over.
Now let’s contrast the average American’s retirement scenario with that of our average senator or congressman/congresswoman. Let’s start with: they don’t pay into Social Security. Apparently, such lofty personages wouldn’t sully themselves with a plan that was designed to serve the masses. They require a special plan, one more fitting with their station in life. To that end, many decades ago they constructed and voted a plan into existence that’s more becoming and suited to their needs. It’s a pretty good plan, actually. First of all, they pay nothing into it. You read that right. Their retirement plan is free…well, not actually free. We—you and me—pay for it with our taxpayer dollars. “Gee,” you might be thinking, “that’s pretty sweet. I wonder how much they get?” It’s a pretty straightforward plan, not at all complicated. When they retire, they continue to collect their same salary until they die. Oh, except for an occasional cost of living increase.
So let’s see if we’ve got this straight. Our elected officials voted themselves a retirement plan that pays them their same salary for life and they don’t contribute dollar one to receive this benefit. Yep, that’s it—told you it was a pretty simple plan.
Now let’s return to the single-payer health care proposal our fine elected representatives would like to enact for you and me. I don’t want to argue about all the details. Will this new plan cause health care rationing? Will Washington bureaucrats determine whether or not my mother is worthy of that operation she so desperately needs? Can I keep my own doctor? Will illegal aliens be covered? Who will pay for it and can we even afford to adopt such a costly plan? None of those or 100 other questions matters to me right now.
I only want to know one thing: Are our senators and congressmen going to be covered by the same health care plan they’re proposing for us? If they are, I’m in. If they’re not, they’ve revealed themselves once again. Then, this isn’t really about health care for all, it’s about power and control. Americans aren’t clamoring to blow up our existing health coverage. Improve it, yes—but not at the cost of transforming the basic relationship between the individual and the state.
Indulge me for one moment more and imagine if our senators and congressmen’s retirement were dependent on Social Security. How fast would they fix it? It’s the same for health care. I didn’t think this country had classes of citizenry. How politicians can justify one plan for all of us and a different plan for themselves is at the root of their dysfunction. I believe this entire debate is dishonest. Words don’t match deeds. And if I’ve learned anything in this life, it’s to watch what people do—not what they say.
That’s it for now. Enjoy this month’s magazine.
