Current Political Events: February 2005 Archives

Why is President Bush pushing for Social Security reform which would add to current and future deficits given the fact that there is no Social Security crisis today, while the Medicare and Medicaid programs pose an extremely serious economic and financial threat now? There is a deep schism occurring between the nation's state governors and the Whitehouse. Regardless of party, the nation's governors are challenging the Whitehouse's proposed cuts to Medicaid and lack of action on Medicare.

First, let's define what we are talking about. The Medicare Website states :

The Centers for Medicare & Medicaid Services (CMS) administers Medicare, the nation's largest health insurance program, which covers nearly 40 million Americans. Medicare is a Health Insurance Program for people 65 years of age and older, some disabled people under 65 years of age, and people with End-Stage Renal Disease (permanent kidney failure treated with dialysis or a transplant).

Medicaid is a program that pays for medical assistance for certain individuals and families with low incomes and resources. This program became law in 1965 and is jointly funded by the Federal and State governments (including the District of Columbia and the Territories) to assist States in providing medical long-term care assistance to people who meet certain eligibility criteria. Medicaid is the largest source of funding for medical and health-related services for people with limited income.

The Washington Post reports on a new US Submarine capable of tapping sub-ocean laser communications trunk lines all around the globe. The Wash. Post states: According to intelligence experts, it can tap undersea cables and eavesdrop on the communications passing through them. The military has just opened the door to trade, business, and economic espionage on both our allies and enemies.

This submarine opens the door for the intelligence community to feed commercial communication by not only governments, but, corporate enterprises in foreign lands as well as here, to various agencies of the US government. Such espionage could prove very useful to the Commerce Department, State Department, and trade and tariff agencies within the US. Satellite communications espionage has been around for awhile, but, the safe haven of ocean bottom laser trunk lines will no longer be safe. Since the US has already demonstrated its intent to interpret treaties and international conventions for its own purposes (e.g. Geneva and Kyoto), there is no authority on earth capable of halting misuse of the USS Jimmy Carter communications taps for any purposes the White House dictates via the intelligence community.

The President is yet again proposing a tax payer busting budget. But his advisors' sophistication has grown. In a snapshot of revenues and expenditures, the President may show on paper a deficit cut in half by 2009. But, as anyone who balances a checkbook and has credit cards knows, a snapshot does not give an accurate picture of financial well being. The 2006 spending budget is going up about 8% over last year's. And while the President proposes increasing the spending budget, he at the same time is asking for permanent tax cuts. Anyone who can add and subtract will understand when we are already spending more than we are taking in, cutting our income and raising our borrowing must increase our debt, not lower it.

There are many ins and outs of the budgetary process which can and will lead to endless point - counterpoint debate over the details and priorities. But, the overall picture of the President's fiscal policy is now in fairly sharp focus, and the frightening picture is clear. The Bush Administration's fiscal policy has two long range goals, escalate military and foreign spending, and end Social Security and Medicare.