Monday, May 22, 2006

Never Underestimate Politicians

I just ran across this short post by Winterspeak.
Honest Accounting

State governments have been made to honestly account for their healthcare liabilities by putting the cost of those future liabilities on the books today. No changes are being made to the promises, or to taxes, or to any part of the system -- everything remains exactly as it was except an implicit cost is being made explicit.

People are freaking out.

"It's no exaggeration to say that elected officials are shocked, absolutely shocked, by the size of these liabilities," says Donald Rueckert Jr., senior vice president and actuary at Aon Consulting, an insurance broker.

I like this step because it does not change any part of the entitlement process, which is politically problematic, it's simply more honest and upfront about costs. I'd like to see the same thing happen to Social Security, Medicare, and Medicaid. I don't think those systems can be reformed without first making their costs explicit.

Don't you just love it. Nothing has changed, except that a little boy finally pointed out that the emperor has no clothes. And all the pols are shocked! Imagine -- agreeing to pay out all that money without even a clue how much it would be.


Post a Comment

<< Home