Keith Hennessey reviews the disagreement between Paul Krugman (on one side) and Rep. Paul Ryan, New Gingrich, and John Goodman (on the other) about how to change Medicare so it does not bankrupt the country. How much is Medicare spending? Consider what Hennessey points out:
The policy reality is that if we are to prevent a massive debt explosion, unprecedented tax increases, and/or the destruction of other federal spending programs, Medicare’s spending growth will have to be dramatically curtailed from its current unsustainable 6.6% average annual growth rate. Medicare’s cost to taxpayers this year will be $25 B larger than last year. The one-year increase in Medicare spending exceeds this year’s spending on any of the following:
- total federal spending for child nutrition ($17 B) and foster care ($7 B);
- agriculture subsidies ($21 B);
- NASA, space science and space flight ($19 B); or
- higher education ($20 B).
Every time Dr. Krugman, Speaker Gingrich, or Dr. Goodman say “cut Medicare” to describe a proposal that would merely slow its growth, they contribute to our long-term deficit problem, the likelihood of future tax increases, and the pressure on other purposes of the federal government. Responsibility policymakers on both sides of the aisle need to elevate the debate and agree that Medicare spending must be slowed, even as we debate how best to do that and whether those changes should be combined with other spending increases.
Scary stuff.
