Thursday, October 15, 2009

That is why no one believes Dems

Social Security Administration declared that there will not be any payment increase for 2010 in light of 'deflation'. Now that is for sure bad for seniors who depend on Social Security money since many other costs are relentless, especially the health care cost. This means suffering. In order to redress this suffering, our compassionate President has declared to award one time $250 to each Social Security recipient. Being mindful of not so good state of Social Security Fund, President also said that he would not like this bonus to come from that fund, but he did not mention from where!

Since we still do not have any technology to 'generate money from thin air', this means $13 Billion dollars cost of this program is going to come from the general budget; meaning - pass the hat to Chinese; more borrowing. Our esteemed Congressional Leadership of Nancy Pelosi, Harry Reid and Charles Rangel are not to be left behind when it comes to compassion and hence they have promptly agreed to borrow money to support President's humanitarian Social Security Bonus.

New Hampshire Republican Senator Judd Gregg got it right when he opposed such payment saying that what was the point in the first place to have such arrangement, of linking payout to inflation, in Social Security? Now we see why no one believes Democrats when they say Congress will stick to reduced Medicare Payments in the proposed Health Care Bill.

It does not stop here. It gets even more interesting. Some bright bulbs in Senate are pushing for a separate bill to the tune of $250 Billion to pay money to Doctors over the period of 10 years so that they are compensated for the proposed cuts in Health Care Bill. And the argument is 'oh, that will keep the Health Care Bill' as budget neutral!

Now is the time to ask Rep. Barney Frank, Congress and oh yes our beloved, rock start, Nobel Peace Prize Winning President - which planet these Democratic Politicians live?

This is beyond disbelief and totally disingenuous and irresponsible by Dem side. What is wrong then when Republicans say let this Health Care Reform die? True, Republicans spent like drunkard when they were in power. But we Americans do not get out of the hole when 'one drunkard is replaced by another one'; we get deeper into the hole.

Solution for Social Security non-increase is not 'not paying' those $250 per person. But if the Administration and Congress wants to do that, balance that money somewhere else - increasing some tax or cancel some spending. Doing gimmickry or unending borrowing is not the solution. Sermons like Christina Romer when she says President is not at all comfortable with Budget Deficit; that is all empty talk when neither President is doing anything nor is able to avoid 'digging more'. As Senator Bayh said, the current arrangements of 'cost control' in the Health Care Bill are not tight enough and behavior of Democrats so far confirms the worst fears of critics of this bill.

And by the way as far as one time Social Security increase to Seniors goes, we give damn to the political necessity of this Administration to placate Seniors when Republicans shouted that the proposed Health Care Bill is a raw deal to Seniors. That is the pickle of Administrations own making.

Update - Many in blogsphere contend that Obama plan is fiscally responsible because it is avoiding the base 3% increase in Social Security payment, as would be the normal case or the increase needed to yield $250 on an average. Instead it is only one time increase without having the increased base in subsequent years. Contention is that is some kind of saving. Again, the point is whatever increase outside the Social Security Fund is planned; how is it financed - by increasing deficit or by cutting some expenditure somewhere or by generating new revenue.

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