Oops, there goes Social Security

The recession seems to be hitting the Social Security trust fund pretty hard. At least, that’s what the lead story in today’s New York Times seems to say.

Medicare is supposed to run out of money even earlier, in 2017. That’s despite total spending on the two programs of about $1 trillion, about one-third of the federal budget.

Despite the administration’s claims that runaway health costs are contributing to the situation, it does make it difficult to launch a major new spending program, national health insurance, in light of the new fiscal constraints. And Republicans are bound to play up the situation even more.

Part of the problem: the Congress is timid about providing any new sources of revenue to help fund national health insurance because they will be branded as tax-and-spend liberals and face heated challenges in upcoming elections.

Noone likes to lose their job.

But, as the saying goes, you can’t have your cake and eat it, too. Obama’s plan to tax health insurance plans provided by employers seems like a good, targeted way to pay for national health insurance, and all he needs, for a change, is a leader on Capitol Hill to pave the way.

Stay tuned to see how this developing drama will play out.