One of our Associates
says that Social Security and Medicare are entitlements in the same category as
food stamps, rent subsidies and the like.
My position is that the so-called entitlements are of two types; earned and unearned. I consider Social Security and Medicare are earned entitlements, because I put money into them with the intention of obtaining a return, as I would with any insurance program.
Our Associate says that this is an improper way to look at it. A government expenditure pie chart shows significant expenditures for Social Security and Medicare and includes all other expenditures, such as the military, foodstamp's etc. On that basis, our Associate says I should give up receiving Social Security and Medicare payments, on the basis of principle, similar to the fact that I would not accept payments for food stamps. My latest reply is as follows:
My position is that the so-called entitlements are of two types; earned and unearned. I consider Social Security and Medicare are earned entitlements, because I put money into them with the intention of obtaining a return, as I would with any insurance program.
Our Associate says that this is an improper way to look at it. A government expenditure pie chart shows significant expenditures for Social Security and Medicare and includes all other expenditures, such as the military, foodstamp's etc. On that basis, our Associate says I should give up receiving Social Security and Medicare payments, on the basis of principle, similar to the fact that I would not accept payments for food stamps. My latest reply is as follows:
"You are right from the government's point
of view. Social Security is the best example. It was originally intended to be
an insurance program with separate funding. In other words it was the same as a
private insurance company collecting premiums to pay against claims. The
policyholders had a balance of credit toward the insurance company or
government, which in turn was an insurance company or government debt.
This has been adulterated so that the the US government no longer regards it as a debt. In other words it was a debt which the government found convenient to disallow. It is not basically different than a program which would also disallow government debt from sale of government bonds.
From my point of view, I still regarded Social Security and Medicare as a government debt to me, because I paid and continue to pay the insurance premiums. In view of that, I am entitled to continue receiving monthly Social Security payments. Medicare is similarly included.
Look at it this way. The Chinese have bought US government bonds, on which the US government has a debt to the Chinese. If the US government now decides that it no longer has this debt and continues to pay the Chinese something on general principles or as an entitlement, do you think that the Chinese would agree to that logic?"
This has been adulterated so that the the US government no longer regards it as a debt. In other words it was a debt which the government found convenient to disallow. It is not basically different than a program which would also disallow government debt from sale of government bonds.
From my point of view, I still regarded Social Security and Medicare as a government debt to me, because I paid and continue to pay the insurance premiums. In view of that, I am entitled to continue receiving monthly Social Security payments. Medicare is similarly included.
Look at it this way. The Chinese have bought US government bonds, on which the US government has a debt to the Chinese. If the US government now decides that it no longer has this debt and continues to pay the Chinese something on general principles or as an entitlement, do you think that the Chinese would agree to that logic?"
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