THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Tuesday, January 9, 1996 TAG: 9601090003
SECTION: FRONT PAGE: A12 EDITION: FINAL
TYPE: Letter
LENGTH: Short : 41 lines
Some see Medicare and Social Security as natural targets in balancing the budget. That's where a lot of money is going. With the baby boomers due to collect, we have to do something to stem the tide.
Everyone seems to agree that the cost-of-living-increase formula is too generous; that older people need to pay more for Medicare coverage and should pay a bigger percentage of medical costs. It all works out well on paper.
One thing forgotten is the practical result of this reform. Take me. I retired in 1984. My investments, which used to pay 12.5 percent, now pay 7.5 percent. My pension hasn't increased one penny in 11 years. Only Social Security has increased to cover 11 years of inflation.
Many retired people I know are in much worse shape. As inflation eats away at buying power, their discretionary income (vacations, restaurants, movies) has all but vanished. They are now battling for subsistence (food, rent).
To those people, whether the cost-of-living formula is fair or unfair, whether a lot more people are jumping on the bandwagon - these considerations are immaterial. If their benefits are cut, they will struggle for survival. These are middle-class working people, the supposed darlings of the politicians.
It is true that today older people are healthy and energetic, and a later retirement age is in order. And since a crisis is coming with the baby boomers, means testing of benefits should be considered, though it does violate the spirit of the Social Security plan.
But if a large percentage of the middle class finds itself being squeezed to death, while others enjoy a tax cut, you can bet that a lot of rascals will be thrown out in future elections.
EDWARD F. BACON
Virginia Beach, Dec. 27, 1995 by CNB