Jeff Gelles: Promises that can't be kept?

U.S. Rep. Eric Cantor says the math just isn't there to back up the future outlays needed for Social Security and Medicare. But others say the math can work, given flexibility, and what this is really about is just reducing benefits.

August 07, 2011|By Jeff Gelles, Inquirer Columnist
  • House Majority Leader Eric Cantor (R., Va.) leaves the House chamber after the House of Representatives passed the emergency legislation to avoid a government default. He says certain promises cannot be kept.

Talk about a buzz-killing week. It started with an end to the debt-ceiling nightmare that satisfied no one - the best summation: "You don't 'win' a hostage crisis. You resolve it." It ended with reminders, via the stock market and the jobs report, of why no one can just pinch us and wake us all up.

But along the way, two lesser headlines caught my eye.

One was more evidence that the rich are still getting richer: an 8 percent increase in luxury-store sales - the latest echo of a study showing that by the eve of the Great Recession, the top 1 percent of U.S. earners had captured a larger share of the nation's income than any time since 1928.

Story continues below.

The other was a remark by House Majority Leader Eric Cantor (R., Va.), who told the Wall Street Journal's Opinion Journal it was time for Americans to "come to grips with the fact that promises have been made that frankly are not going to be kept for many."

Cantor may have been mostly focused on Medicare - in particular, on House Budget Chairman Paul Ryan's proposal, already passed by the House, to dump the current Medicare system for people now under 55. Instead, future seniors would get "premium support" - vouchers to buy private insurance that would, depending on your faith in the health-care marketplace, either force medical costs to moderate or leave less-affluent seniors with increasingly inadequate coverage.

As he has before, Cantor said the goal was to protect those nearing retirement while putting everybody else "on notice." "The rest of us have got ample time to try and plan our lives so that we can adjust to reality here when you look at the numbers. Again the math doesn't lie," Cantor said.

Yup, math doesn't lie. But politicians often use it in misleading ways, especially when they talk about costly, popular programs such as Medicare and Social Security and are mesmerized by the magical notion that, whatever the nation's needs, taxes can only ever be adjusted in one direction: down.

And there may be no better example than the latest simplistic plan - distressingly backed by voices from both sides of the aisle - to "fix" Social Security by changing the way benefits increase over time to account for a rising cost of living.

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