Are Libertarians Who Collect Social Security Truly Libertarians or Hypocrites?
The Debate:
The question of whether libertarians who collect Social Security when they reach an advanced age are truly libertarians or hypocrites often leads to significant debate. Depending on whom you ask, the answer can vary widely. For instance, Ayn Rand would likely argue that, by collecting Social Security, libertarians are being pragmatists rather than true adherents to her philosophy. On the other hand, thinkers like Isabel Paterson and Rose Wilder Lane would argue that such individuals are being hypocritical, as they are taking advantage of a system they believe is corrupt.
The reality is that the popularity of certain thinkers can have a profound impact on how their followers defend their decisions, even if these actions contradict the philosopher's professed ideals. This highlights the complexity and nuance of political and ethical debates in the libertarian community.
An Examination of Social Security and Medicare: How They Work
Understanding Social Security:
At its core, Social Security is a form of retirement plan. Both you and your employer contribute to it through payroll taxes, with 6.2% going to Social Security and 1.45% to Medicare. This money is held in a trust fund that generates interest. Once you reach the minimum retirement age for Social Security, you have the option to draw your retirement annuity or defer it.
The minimum retirement age has been gradually increasing over time, starting at 62, then rising to 65, and currently standing at 67. Some believe it could reach 72 by 2040. The current system is not strictly an entitlement but rather a partially self-funded and employer-funded program that also covers survivor annuities and disability insurance, under the formal name Old Age, Survivors, and Disability Insurance (OASDI).
Collection Options:
Retirement Annuity
Social Security Survivor Benefit
Social Security Disability Insurance
The key is to understand that the total amount you receive over your lifetime will remain the same regardless of when you begin collecting, assuming you live up to the average life expectancy age. Deferring the collection can provide a higher monthly annuity, which can be a benefit for those with good health.
Understanding Medicare: How It Works and Its Funding
Medicare Overview:
Medicare, the health insurance program for individuals over 65, is another crucial aspect of the health care system. Part A, which covers hospitalization, is automatic and comes with no additional cost. However, Part B, which covers doctor visits, lab work, and imaging, is not automatic. Individual Medicare premiums and additional costs can vary, with the current Part B premium set at $134 per month.
It's essential to understand that Medicare is not free and that you and your employer contributed to the Part A premium. Part B premiums are additional, and the fact that many people do not pay for the full scope of their medical needs has led to discussions about Medicare for All proposals.
The Contrast: Social Security vs. Entitlement Programs
Social Security vs. Medicaid and SSI:
Social Security and programs like Medicaid and Supplemental Security Income (SSI) are different in how they operate and are funded. Social Security is funded through payroll taxes and is not an entitlement program. Medicaid and SSI, on the other hand, are entitlement programs that assist those who have not worked enough to qualify for Social Security or Medicare. These programs are managed by Social Security and each state, and they are separate from the coffers of Social Security and Medicare.
The funding for these programs comes from annual congressional and state budgets, not from the same trust funds as OASDI and Medicare. Understanding this distinction is crucial for comprehending the complexities of the U.S. social welfare system.
Conclusion
The debate over whether libertarians who collect Social Security are being pragmatic or hypocritical reflects a broader discussion about the dynamics of political philosophy in action. As Social Security and Medicare continue to evolve and face new challenges, it is vital for individuals to have a clear understanding of how these programs work and the implications of their use.