Raising the Medicare retirement age — Marginal Revolution

Put all that behind us but store it in memory.  When I see President Obama considering an increase in the Medicare retirement age, here is what I do not infer:

1. I do not infer he is a coward (didn’t he stake his whole political future on ACA?).

2. I do not infer that he is a worse bargainer than are the Republicans.

3. I do not infer that he is a very stupid man.

4. I do not infer White House cabal theories which have his mind in the hands of evil villains, hellbent on reelection and ready to throw all progressive principles to the winds.

Here is what I do infer:

1. I infer he understands that the Medicare Payment Advisory Board isn’t going to live up to the high hopes for it.  It may not even survive.

2. I infer he understands that most other plans for Medicare cuts won’t get through Congress, and that it will only get tougher to pass such plans each year.

3. I infer he understands that somewhat fewer Medicare recipients at any point in time will, possibly, make it easier to reform and indeed improve other aspects of the program.

4. I infer he understands that Medicare truly is the budget-buster of our time and that its future will not ever be ruled by technocratic principles.

Most of all, I infer that our President has had a very deep, very true, and indeed very depressing education in public choice economics.  And I infer that any path to a workable fiscal conservatism will be tougher and more painful and more distortionary than we had thought.

via marginalrevolution.com