Monday, February 04, 2008

Why Paul Krugman's Right About Mandates

A recommended diarist (also an actuary by profession) at the progressive blog Daily Kos explains why NYT columnist Paul Krugman is right about mandates for Universal healthcare.
imagine if, as Barry Goldwater proposed in 1964, payroll taxes (Social Security contributions) were made voluntary. You could opt out of the Social Security system. If you were a young, healthy 25-year-old, why would you want to pay Social Security taxes through your nose if you see very little possibility of benefiting from your contributions? Wouldn't you rather spend your money feeding your children or saving for that new home? Doesn't seem like Social Security is a good investment, does it? So then who would be left paying into Social Security? The people closer to retirement. Because a much smaller pool of people would be there to contribute to Social Security and Medicare Part A, there would have be either a much greater contribution rate or significantly reduced benefits.
Related: Universal Health Care: Why Obama Is Wrong by Partially Impartial/Daily Kos website