Aging Nation:The Economics and Politics of Growing Older in America
By James H. Schulz and Robert H. Binstock (Praeger Publishers, 2006)
Two leading policy gerontologists tackle the conventional (and often false) wisdom, propagated by the doomsters, about the perils of a nation living longer.
Summary:For the vast majority of older people in the United States today, life in old age is characterized by:
- Reasonably healthy and active lives,
- Generally adequate income,
- Independent living arrangements, and
- A dramatic rise in the number of years in retirement
The authors then refer to the Merchants of Doom. Contemporary commentators (some economists, politicians – including the White House, and journalists) who fear that there will not be enough revenue to fully pay benefits from the two major old-age “entitlement” programs, Social Security and Medicare. The Merchants of Doom “warn there is great adversity ahead for all of us, collectively, arising from the fact that we are an aging nation.”
The Merchants of Doom see the coming crisis arising from three trends:
- The long-term decline in fertility rates, which means that the national proportion of older persons continues to grow.
- The trend of sharply increasing absolute numbers of older persons who will be eligible for old-age programs.
- The substantial increase in average life expectancies at old ages, which means that persons eligible for old-age benefits will be receiving them for longer periods than in the past.
The solutions that the Merchants of Doom offer to deal with our aging nation are nothing short of horrific:
- Cut or eliminate Social Security
- Ration health care for older people
- Lower or terminate employer-sponsored pension benefits, make people work longer, and shorten the number of years spent in retirement
- Require everyone to assume far greater individual responsibility, and the accompanying individual risks, for retirement financial planning and saving.
Instead of fixating on the “doom,” the authors suggest that Social insurance (e.g., Social Security, Medicare, etc.) is especially important now and for the future because the support from employer-sponsored pensions and retiree health insurance is on a dramatic downward spiral.
They argue that the future costs of an aging population and our ability as individuals and a nation to meet these costs depend fundamentally not on demography but on the general economic health of the nation and the quality of the programs addressing issues of old age.
The authors provide a clear and insightful overview of the history and present shape of our Social insurance programs: Social Security, Medicare, Medicaid, etc. They then propose various ways that these programs can be maintained for future generations.
The authors also argue against reforming Social Security by creating private or “personal accounts” to be financed by diverting a portion of the payroll tax revenue that presently generates revenue for Social Security. Such action would decrease Social Security revenue, place the individual at greater risk depending upon the market, and increase the number of persons living in poverty. Presently, Social Security is an earned entitlement that provides “a floor of guaranteed protection.” It provides “security with dignity.”
The authors also suggest that the problem is not Medicare and Medicaid, rather it is our entire health care system, which requires reform and our immediate attention. But neither Congress nor the Bush administration is so inclined to tackle that which, at present, can be easily fixed.
Often, I hear people express concern about Social Security and whether it will still be in existence when they want to retire. The answer is simply this: it had better be here! Without the Social insurance programs, the vast majority of American families would probably be living in poverty.
If you wondered about all the talk concerning “privatizing” Social Security and were perplexed about what it all means, this book will help you in your understanding. It is thorough, genuine, and honest. If you come from a “pure Capitalistic” view of our economy, it will open your eyes for the need of Social programs that exist for the well-being of all Americans.
If you enjoy reading books on issues of aging, economics, and politics you will welcome this book into your library. It is a book filled with expert analysis and balanced viewpoints for countering the alarmist scenarios of the “Merchants of Doom” in our aging society.
Reviewed by Richard H. Gentzler, Jr., D.Min., CSA
Director, Center on Aging & Older Adult Ministries
GBOD
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