They Make Me Laugh
Does the government ever make you laugh? Hardly a day goes by where I don’t find myself laughing at the insanity of government. Will Rogers said, “I don’t make jokes. I just watch the government and report the facts.” Margaret Thatcher wisely noted, “The problem with socialism is that you eventually run out of other people’s money.”
In this morning’s Barron’s summary I saw another example of the lunacy of the government when it comes to social programs and “security.” There are at least four pieces to the puzzle, if not more.
Expected Inflation
The COLA (Cost of Living Adjustment) is a bureaucrat’s dream. I say dream because it isn’t in line with the reality of the real cost increases in healthcare, energy, food, auto insurance, and a host of other basics of living in retirement. If anyone believes that inflation is only about 3.4%, then they aren’t paying attention. The cost of a Ford Escape brake job, auto insurance, electricity, rhubarb pie filling, and countless other goods and services are climbing significantly. Several factors contribute to this, and some of them are the result of unintended consequences from government decisions or lack thereof.
Medicare Part B Premiums
Although I appreciate being on Medicare, the likely cost of the Medicare Part B Premiums will likely rise at a rate greater than 3.4%. Barron’s suggests it might be 5.9%. Do you see the humor any hypocrisy in this? If the cost of the premium is going up more than the COLA, it tells you something about true inflation, at least in the area of health care.
Many People Don’t Plan or Prepare
If it is true, that fourteen percent of Social Security recipients rely on Social Security for “90% or more of their income,” it makes me sad. In fact, it is just about as sad to know that many more depend on Social Security for at least half of their income.
The Government Doesn’t Prepare Either
The government hopes the problem with the using other people’s money will just go away on its own. Otherwise, the Democrats will blame the Republicans, and the Republicans will blame the Democrats for failure to act and for poor policy decisions. But I think Margaret is right: “The problem with socialism is that you eventually run out of other people’s money.”
Will Congress act? I suspect not. But, things will get difficult because, “With fewer workers paying into retiree benefits, the Social Security Trustees recently projected that the program’s retirement trust fund will run out of money in 2033 if Congress doesn’t act before then.” You cannot live on OPM (Other People’s Money.)
Conclusion
If you aren’t prepared for tomorrow, then you may not be a good steward of what God has placed in your hand today. For the one who trusts in the Lord, the insanity of government is indeed sad or funny, but it doesn’t have to reduce the joy, peace, and purpose you have for living.
Know Your Flocks & Herds 