This morning, Dr. Walter Williams noted that Social Security and Medicare have run up an unfunded debt of 106 Trillion dollars. Yikes!!!…Our entire Gross Domestic Product for a year is about 14 Trillion dollars and some change. That means if we invest our entire economy’s output, every Big Mac, Boeing Jet and all our movies, it would take us 7.5 years to pay off the debt on these two entitlements! We have not even talked about the 900 military bases around the world for which we are paying when some cities cannot afford to pay their local police.
Williams goes on to say that the Congressional Budget office has come to the rescue with a tax plan that does not sound like anything we are hearing in the campaign speeches: “All that Congress would have to do is raise the lowest income tax bracket of 10 percent to 25 percent and the middle tax bracket of 25 percent to 66 percent and raise the 35 percent tax bracket to 92 percent.” I don’t think I have heard this speech from either political party.
President Franklin Roosevelt knew that Social Security was bankrupt when he signed the legislation. He said as much to Francis Perkins:
“Ah, but this is the same old dole under another name. It is almost dishonest to build up an accumulated deficit for the Congress of the United States to meet in 1980. We can't do that. We can't see the United States short in 1980 any more than in 1935.”
To FDR’s credit he had no idea how later politicians, turned loose with taxpayer funds, would get creative with Social Security and take us into new levels of deficit spending. The program was designed as a safety net and was never meant to be a “retirement plan,” that is why they put the retirement age at 65; very few people lived to that ripe old age in 1935. To get Social Security on the same track, we would have to boost the eligible age into our 70’s. Mention that idea and if you are an elected official, you will find yourself demonized by the other party and unelected.
We now have a perfect storm brewing. We have the Democrats who will not cut any programs and in fact want to add a few more. We have the Republicans who don’t want any new programs (unless it benefits them and their constituents) but refuse to pay for the programs they have voted for in the past with tax increases. According to Williams this will lead to default on our debt.
What is happening? Harvard psychologist Laurence Kohlberg identified three levels of moral and ethical reasoning that might help define our challenge as a nation:
Level 1: The lowest level defines good as individual well-being, avoiding punishment or gaining rewards. This implies that a person conforms to ethical rules only when an authority is watching or might subsequently learn about an infraction. With this kind of morality, there is no common good. It’s only looking out for number one. It is all about me…like talking to a teenager.
Level 2: The next level defines good in terms of what you consider good for your family or organization as well as for yourself, without concern for the effect of your actions on those outside your circle. This definition can lead to a narrow view of the common good: we vs. others. Or it can be a start of viewing self-interest in terms of the larger community that supports your group. This level is very popular in American politics.
Level 3: A broader definition of the common good is what benefits, or at least doesn't harm, all those who may be affected by your actions. This might include employees, customers, owners, communities, unborn generations and the natural environment. This means doing what is right for the country regardless of the consequences for you and your group. We used to call these people “statesmen.”
When you watch the evening news and hear some woman from the Tea Party saying; “I am against government spending! Take your hands off of my Medicare.” I would say it's safe to say she is operating at Level 1. When we watch the Occupy folks sitting in and when we finally hear their demands, the student Occupiers suggest that the government (me and you) should forgive them of their student debt; is safe to say they are at Level 1.
The politicians are doing a little better; they are concerned about their personal survival and that of their political party, Level 2. This is why Washington in his Farewell Address (1796) warned: “…political parties must be restrained in a popularly elected government because of their tendency to distract the government from their duties, create unfounded jealousies among groups and regions, raise false alarms amongst the people, promote riots and insurrection, and provide foreign nations and interests access to the government where they can impose their will upon the country.”
It appears we have two Presidents that have managed to foretell our future. It is time that we all start taking responsibility for ourselves. As Jefferson noted, “People usually get the government they deserve.” We need to start thinking about our responsibility as Citizens to operate at Level 3 and demand that our elected officials muster the courage to the do the same.
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