Trick or... TrickBy James Hamilton

My wife’s been looking forward to this night for months. She loved Halloween as a kid and now, that our three year old is old enough to enjoy dressing up and eating handfuls of candy, she gets to dress our little girl up and taking her trick or treating. It’s hard to know which of them will have more fun.

With all the talk about Social Security and Medicare by the presidential candidates in recent days, it might make you think they’re all starting to get serious about the issue. But here’s the trick: they’re only doing it to position themselves better politically.

But then, you probably already knew that.

So don’t consume any of the “candy” the candidates are giving out until you’ve had a chance to examine it.

Five Years InBy James Hamilton

Five years ago today I started driving to Iowa. For Our Grandchildren was only hours old and I - the first employee - was on my way to open our first regional office.

The last five years have been a roller coaster ride. The 2004 Presidential Campaign, the Administration's efforts to push the issue in 2005, the 2006 congressional elections, our work with the GAO's David Walker, and - now - the lead up to the 2008 Presidential Campaign. Like every other issue-driven group, as the political process ran its course, we found reason for disappointment, guarded optimism, and ample opportunities to turn lemons into lemonade.

The people at For Our Grandchildren - past and present - have made a difference in the debate. And we'll keep on making a difference until the issue is won.

Thanks David!By James Hamilton

There's been flurry of newspaper editorials over the last couple weeks urging Congress and the presidential candidates to act soon to address the problems facing Social Security and Medicare. Even ABC and CBS have changed their "there's no problem" reporting and - like the rest of the mainstream media - have acknowledged the scope of the coming crisis.

Kudos, then, to the GAO's David Walker, the Concord Coalition's Bob Bixby, and the rest of the Fiscal Wake Up Tour crew who, in addition to their public meetings, have been meeting with editorial boards around the country! The message they've been delivering over the last two years is finally sinking in!

The Flood BeginsBy Lea Abdnor

     YIPPEE!  OPEN THE GATES!  Earlier today the first Baby boomer applied to begin receiving a Social Security benefit check. Kathleen Casey-Kirschling, a retired Maryland teacher who was born at 12:00:01 a.m. on Jan. 1, 1946, applied this afternoon for early retirement benefits. She'll become eligible to receive benefits in January when she turns 62.  Personally, as a baby boomer who has “contributed” more than $200,000 to Social Security and Medicare while working for over 38 years, I look forward to the day that I’ll finally get something back.

     More important, is that the opening of the gates is a very big deal.  Why? The answer is that the retirement of the baby boom generation is a VERY big deal, a 50 trillion dollar issue, to quote GAO head David Walker.  And, it starts now, not in some far off time decades away as some would like us to believe.  However, I predict that the “back burner” politicians (H. Clinton recently said that Social Security was not a front burner issue) will downplay today’s event.   To admit that it is a big problem coming sooner than later would require politicians to actually take a position on how they would fix it!   Most politicians are risk averse and prefer to let the problem get bigger before taking it on.

     The retirement of the baby boom generation will change our country in countless ways.  Some of the changes we can predict, such as how much we boomers will cost the taxpayers.  So, taxpayers, here we come…Hang on to your wallets!

Hoyer Highlights Exploding Costs of Medicare and Social SecurityBy Tim Penny

Democratic Majority Leader Steny Hoyer is to be applauded for his solid and compelling speech last week on the fiscal state of the nation. He was firm in his commitment to a "pay as you go budget

Even more encouraging was Hoyer's "call to action" on the long term entitlement crisis. He correctly highlighted the fiscal tsunami that will soon hit as babyboomers begin retiring. The resulting explosion of costs in the Medicare and Social Security systems will lead to enormous deficits in the years to come. Because the promised benefits of these programs are not subject to "pay as you go" rules - some other means must be devised to control these future costs. Hoyer suggested a truly bipartisan effort - specifically citing several of his congressional colleagues (including Senators Conrad and Gregg) who have proposed commissions or task forces to bring all sides to the table - and, more importantly, place all options on the table.

Second, any serious solution must garner bipartisan support. On behalf of Republicans, President Bush has long championed the need to address these issues. Now, thankfully, top Democrats, like Hoyer, are joining the cause.

With an election looming, it may be expecting too much that such an approach could lead to agreement on a Social Security (and/or Medicare) fix before next November. But, maybe (as in 1982) such a panel could begin their work with an eye toward a report that would set the stage for an up or down vote immediately after the coming election.

There's a lot of noise out thereBy James Hamilton

Take a minute to scroll through the recent headlines about Medicare, Social Security, and other such programs and you'll find there's a lot of people across the country that want Congress and the President to act responsibly and address the coming crises before it's too late.

An editorial board in Alabama asks: "The $13 trillion question is how many in Congress will summon the modest amount of political courage needed to do it."

The Cincinnati Post say: "Anyone running for office will have to be pushed to promote the painful remedy that will be required. It will be up to the press and the people to make that happen."

Some newspapers have tried to do just that. The Washington Post and The Des Moines Register both took Senator Hillary Clinton to task for ducking the issue when given the opportunity to explain her position at a recent debate.

And while the Seattle Post Intelligencer admits "Social Security: No easy fixes", the Charleston (SC) Post and Courier asks Americans to "Face Social Security reality."

And that's where we are. This is our reality, America.

When will the politicians realize that?