As he celebrated the 50th anniversary of Social Security, then–Speaker of the House Tip O’Neill (D–Mass.) hailed the program’s epic accomplishments.
In the days before Social Security was born, O’Neill said, “Life for the elderly is filled with uncertainty, dependency, and horror. When you get old, you are without income, without hope.” The federal government’s payments to retirees, he continued, meant that Americans no longer had to live in “fear and dependency” in old age.
It was a tidy summary of the conventional wisdom surrounding America’s old-age entitlement state—which includes not just Social Security, but also Medicare and many other taxpayer-funded efforts to subsidize the supposedly nasty, brutish, and not-so-short lives of the over-65 crowd.
It is a narrative that deserves to be shoved off a cliff.
Today’s retirees, most of them from the baby boomer generation, are the wealthiest cohort of Americans. The median household headed by someone over age 65 is far wealthier than the average household headed by someone in their late 30s.
Despite that, roughly 22 cents of every dollar the federal government spent last year was funneled to retirees via Social Security. Medicare spending accounted for another 14 percent. Many of those dollars were extracted from younger, poorer Americans. (The rest were borrowed and added to the national debt.)
A retired couple today might possess a robust retirement account and own a million-dollar home, but the government still acts as if they live in the poverty-stricken hellscape that O’Neill described. And as the old have gotten wealthier, the taxpayer-funded benefits have only gotten more lavish.
Social Security provides inflation-proof monthly payments, keeping retirees ahead of the curve even as working-age Americans struggle to make ends meet. In many places, seniors are gifted special exemptions from taxes on homes and vehicles that aren’t available to younger Americans. Medicare, created to address seniors’ medical needs, now offers such taxpayer-funded perks as discounted golf course fees, ski resort lift tickets, even pet supplies and pickleball equipment.
In short: Today’s old-age entitlement system is not a last-resort guardrail against poverty and desolation. It is a sprawling, expensive lifestyle-subsidy program that steals from the poor to give to the rich—while also worsening the housing crisis and pushing the country toward a dangerous fiscal cliff.
Hellbound and Down 