Baby Boomers: Social Security and Medicare Are Going to be Okay

The Sunday New York Times contains an interesting opinion piece by columnist, Paul Krugman, entitled, "The Geezers are All Right." http://www.nytimes.com/2013/06/03/opinion/krugman-the-geezers-are-all-right.html?hp.  Mr. Krugman is a professor of Economics and International Affairs at Princeton University and the winner of the Nobel Prize in Economics in 2008. I highly recommend that you read the article if you are concerned about the future of your Social Security and Medicare benefits (and, quite frankly, who isn't?)

The article points out that there is no real need to cut benefits now for anyone since for the time being there is no shortfall.  As Mr. Krugman argues quite persuasively, "[t]he risk is that we might, at some point in the future, have to cut benefits; to avoid this risk of future benefit cuts, we are supposed to act pre-emptively by...cutting future benefits. What problem, exactly, are we solving here?"

Mr. Krugman also points out that the cost of health care has actually appeared to flatten out recently and proposed cuts in Medicare may not be necessary if other measures already in place and soon to be in place, including Obamacare, are fully implemented.

It appears that a lot of the hand-wringing and doom and gloom about these vital social programs is just plain unwarranted. This is not to say that nothing should be done to improve these programs, but cutting benefits now for anyone is not the answer.

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