The Picayune Item

Columns

January 29, 2013

Entitlements, less government

STARKVILLE — The “me” generation has now become the “pay me my entitlement” generation.

If you were born between 1946 and 1964, you are one of 76 million Americans born in that span now careening toward retirement and their so-called “golden years.” Actually, net immigration raises the actual number of “baby boomer” age individuals in the U.S. to 79.6 million.

Of those 79.6 million Americans, some 1.386 million are Mississippians, according to Census data — 696,439 men and 689.684 women.

Based on election results over the last 20 years, it is increasingly evident that the political message that resonates with the majority of Mississippians is the notion of a smaller, less intrusive government that both spends and taxes less. Yet at the same time, there remains an expectation that government maintain quality schools, reliable infrastructure, readily available health care and public safety.

Oh, yes, and Baby Boomers want the Social Security and Medicare to which we believe — after years of having the federal government take money from our paychecks to fund those programs without debate or discussion — that we are entitled. Then there’s Medicaid, the other bedrock of public health care.

Those entitlement programs present the rub. In 2030, one in five Americans will be over age 65. When I was born in 1959, there were about five working Americans for every retiree. By 2025, it is forecast that there will be only two workers for every American retiree. When I was in high school in the mid-1970s, federal entitlement spending on Social Security, Medicaid and Medicare represented 25 percent of federal spending.

Today, those programs take up 40 percent of federal spending and within 10 years, that percentage will rise to 50 percent. For Mississippians, the fact that in 2011 some 49 percent of the state’s total budget came from federal funds should be particularly significant.

Federal funding is critical for Mississippi’s health care, public education, transportation, and for many, basic subsistence in the poorest state in the union. It’s half the state’s total budget.

States like Mississippi with a high dependence on federal funds as a percentage of total state budgets will face undeniable fiscal consequences if federal spending is curtailed to the extent necessary to confront the massive structural federal deficits dictated by the approach of the baby boomers claiming their entitlements in their retirement years.

Mississippians receive exponentially more from the federal government in spending then they pay in federal taxes. That fundamental disparity looms as the fundamental consequence of Congress eventually facing up to decades of irresponsibility in their handling of the funds collected from taxpayers to fund entitlements and the highly political expansions of those entitlements with no corresponding revenue source to pay for those expansions.

Less federal spending in Mississippi translates into questions deeper than the obvious ones about just who pays for Granny’s nursing home bill or Grandpa’s hospital stay. A smaller federal government translates into less government services and an examination of how much government state and local taxpayers are willing to fund.

For every dollar Mississippians pay in federal taxes, they receive $2.47 in federal spending. What happens if federal spending decreases in Mississippi? The logical results are either significantly less services or higher state and local taxes to maintain current levels of services — and there’s not much more on the menu from which we can choose.

(Sid Salter is a syndicated columnist. Contact him at 601-507-8004 or sidsalter@sidsalter.com)

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