6 Reasons Joseph Stiglitz Thinks Means-Testing Medicare & Social Security Is a Destructive Idea

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http://www.alternet.org/news-amp-politics/6-reasons-joseph-stiglitz-and-other-top-economists-think-means-testing-medicare

6 Reasons Joseph Stiglitz and Other Top Economists Think Means-Testing Medicare & Social Security Is a Destructive Idea



In Washington-speak, “means-testing” is a scheme to deny or reduce Medicare and Social Security benefits for people who are “too wealthy” in the name of saving money. It’s a counterproductive, harmful idea, but one that well-intentioned liberals often get snookered into embracing.

It’s easy to see why. Economic inequality has exploded to dangerous levels, and the argument for means-testing seems to appeal to a powerful sense that the rich are getting more than their fair share at the expense of everyone else. Combine this with the deficit hysteria promoted by conservatives, and the trap is set.

Don’t fall into it. The truth is that means-testing is a sneak attack on vital programs meant to weaken and eventually destroy them. There’s a reason why an ultra-conservative like Paul Ryan pushed means-testing during the presidential campaign. And there’s a reason why private equity billionaire Pete Peterson, enemy of Social Security and Medicare who served in Richard Nixon's cabinet, makes a special point of bringing up means-testing when he is talking to liberals.

Conservatives push means-testing because it’s a highly effective political strategy for getting liberals and progressives to act against their own values and interests -- so effective that some economists billing themselves as liberal, such as Jared Bernstein, a former adviser to the Obama administration, sometimes talk about means-testing as if it’s a reasonable idea. Bernstein recently went on CNBC and said that means-testing “sounded like a good idea” and characterized people opposed to it as “fringe.”

[HiPointDem]

1. kr. finally somebody said it.

[xchrom]

2. +1

[SammyWinstonJack]

3. K&R

[exboyfil]

4. We already have means testing as part of both programs

The tax code for Social Security, and the different premium levels for Medicare. As far as Social Security means testing is a very bad idea in my opinion because we want to encourage individuals to save for retirement.

I think Medicare needs to be part of a broader healthcare solution that bases the cost of healthcare coverage on income (no other way to do it).

[fasttense]

11. Did you read the article?

"Medicare needs to be part of a broader health care solution that bases the cost of health care coverage on income (no other way to do it)."

So you are saying we have to go to means-testing every health care plan?

How about everyone gets free medical care because they are citizens of this great, rich country.

Hell, we give billions, and billions and billions and billions to uber rich, greedy little pigs. We, as a nation, can afford to cover every man's woman's and child's health care. Yes we can. We just don't want to because we are ruled by those same greedy little pigs.

Here is an idea. Instead of loaning money to the wealthiest banks in the world at .25% and then letting them loan it back to America at 3+%, allowing wealthy bankers to make money off of doing NOTHING (2.75%) - talk about means testing?. Why don't we demand that the Fed loan individual Americans the money at .25%? Then you and I could loan it back at 3% and we all get a little bit of the action for doing NOTHING.

[exboyfil]

12. I have in mind a German style plan

That taxes 15% of all income (including capital gains etc) to pay for it. We probably agree on these other issues. If you think enough revenue exists in the other areas, I am open to suggestions. I agree what the Fed has been doing has been shameful and counterproductive

[bemildred]

5. I agree, just remove the goddam cap. nt

[xchrom]

6. +1

[SammyWinstonJack]

7. That's a tax increase on the richie rich so won't happen.

[bemildred]

8. Thanks for clearing that up Nostradamus. We just raised rates on the rich Bucko.

Deal with it.

[Jefferson23]

9. Economic inequality has exploded to dangerous levels is an understatement. Happy New Year Joseph!

K&R

[ananda]

10. KnR

.

[Faryn Balyncd]

13. Stiglitz is a truth-teller.