res- So it will be there for joe mechanic and jane plumber when they need it.
John, there's a concept in economics called "the law of diminishing return". This law is true in nature, as well as man made systems. If I sharpen a saw, it will cut wood better, but if I sharpen a saw too much it becomes brittle and breaks easily. If I work out an hour or two a day, it's good for my body, but if I work out 8 hours a day my body will break down.
This law also applies to sociological policy prescriptions. Prescription drugs are both costly and necessary for many elderly people. Some cannot afford this burden and maintain a decent quality of life. However, if we set up the system so that everyone, regardless of income, receives the benefit, we will reach the point of diminishing return and destroy the very thing we set out to accomplish.
Joe mechanic with three kids is already being taxed a lot. We could spend countless hours arguing over whether he is taxed more and less than what we think he should be taxed. But, the fact is, he is being taxed more than any other generation of Americans before him. Often, his wife has to work in order to provide the same quality of life his father had.
Wealthy seniors who have invested wisely, and done well financially through their life don't need to be taken care of by the government just because we can do it.
Using that same line of thinking, we should have everyone over the age of 65 receive free homes, free cars, free public transportation, and free plane rides to visit their offspring? After all, young people trying to raise a family should be glad to pay for it, because, when they get older it will be available to them.
There is absolutely no logical reason why joe mechanic making 40K a year and trying to raise a family, should pay for Warren Buffet or any other wealthy persons prescription drugs. Means testing is an obvious first step if the program is going to successful. Warren Buffet can take care of Warren Buffet. It makes sense for our society to provide assistance toward those who face heavy burdens because of their income. It make no sense to give handouts to people who don't need it, have never needed it, and will never need it.
If we give free prescription drugs to every elderly person there will be a huge incentive for current and future middle and upper income seniors to drop private insurance in favor of government coverage. The result: taxpayer costs will rise to the moon. Every projection put forth will look ridiculously low 20 years from now. The burden will then be tremendous on the young who are trying to build a life for their family.
If we as a society are not willing to means test the prescription drug benefit, we should drop the whole concept. |
