Saturday, January 08, 2005

Applying Brakes to Benefits Gets Wide G.O.P. Backing (from Sunday's NYT)

Good for the GOP.

My favorite quote:

"A legislative proposal drafted by the White House would make it more difficult for Congress to pass legislation increasing the "long-term unfunded obligations" of benefit programs like Social Security, Medicare, Civil Service retirement and disability, veterans disability compensation, and health benefits for retired federal employees."

I also approve of revisiting the Prescription drug bill.

One point I keep in mind is part of the crisis around entitlement spending relates to the high growth rates of medical spending. Projecting these rates forward makes things seem horrible, but just as growth companies do not continue in perpetuity at high rates, neither will medical spending rates.

I also wonder how the various medical professions will react to more limited funds. The revenues to pay the salaries come from private insurance payments, cash payments and from governement payments. One stream of "revenue" will shrink.

I'm sure the SEIU will have some hysterical to say.

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