THE OFFICIAL NEWSLETTER FOR GENERATION AMERICA MEMBERSAUGUST 2012

ALSO INSIDETHE STATES

RESIST OBAMACAREONE MAN’S KEY TO

A LONG LIFE ELDER CARE

TRAVEL KLONDIKE

BY TRAIN

CHELSEA NEW YORK

The Patient Protection and Affordable Care Act is an extremely complicated and difficult to understand law that concerns the already extremely complicated and difficult to understand issue of healthcare. Since the law first emerged I have been fortunate enough,

as have many of us, to engage in conversation with many

knowledgeable and intelligent individuals on the subject.

The political mindset of these individuals runs the

spectrum from devoted liberal to devoted conservative.

Included, are those in government, healthcare, and of

course, senior services. The overriding theme of these

conversations has been inconsistency. I don’t mean

inconsistency arising from a moral or philosophical

opinion regarding socialized medicine, or speculation on

its benefit or detriment to society; I mean that there are

widespread inconsistencies in a general understanding of

the contents and immediate effect of this law. In other

words, we don’t know what this law does.

I will attempt to decipher two key components, that I

found particularly disturbing, from the content of the law.

1. You will no longer have control over your healthcareUnder the Patient Protection and Affordable Care Act

your right to independently choose medical treatment is

removed. The Health and Human Services (HHS) Secre-

tary will be the sole decision maker concerning the

services you will need, as well as what plans you will

purchase. Additionally, they will decide upon the cost of

the plan and which services will be covered. Doctors that

do not follow the letter of the law, Section 1311, will be

denied the right to treat you. The Federal government will

now have absolute power over how doctors can treat all

patients for the first time in our nation’s history. There are

already similarities present in the way Medicare and

Medicaid are implemented, in the sense that only proce-

dures considered cost effective are covered. However, this

law eliminates the option of an alternate public or private

insurance program which is free from such oversight.

We all know that everyone will be required to purchase a

“qualified” healthcare plan. But did you know that you are

required to include proof of enrollment when filing your

income taxes? Consequently, the IRS is authorized to

determine compliance and have penalties leveled against

you if proof of enrollment is not provided.

President Obama promised, “If you like your doctor, you

can keep your doctor.” However, this will not hold true for

anyone, especially those that are currently insured. Every

one of us will be forced to undergo unsolicited change

and loss of personal choice whether our status is private-

ly-insured or uninsured. All aspects of one’s health

coverage will be subjected to HHS scrutiny and oversight.

This includes basic decisions such as the choice between

a cardiac by-pass versus a stent or whether there should

be an ACL repair or a procedure for an entirely new knee.

BY SETH DISARRO, GENERATION AMERICA

WHAT YOU MAY NOT KNOW ABOUT

THE PATIENT PROTECTION & AFFORDABLE CARE ACT

Whether you are covered by Aetna,

Cigna, Blue Cross, Kaiser Permanente,

another major company, or none at all,

the government will have total control

over your healthcare, even when you are

paying the premiums.1

The American public has been denied the

opportunity for debate and discussion on

this subject. This is due to the fact that

this law fully authorizes the executive

branch to decide which medical services

will be provided as well as the ways in

which they will be distributed within

Medicare. Therefore, Medicare recipients

will forfeit their ability to make healthcare

decisions more than any other group.

Congress does not even have to give

approval for additional changes to

Medicare that the HHS department

deems necessary.

2. You will no longer have control over your privacyThe Obama healthcare plan requires

physicians to enter complete data on their

patients into a government database. This

includes all treatments provided, and

applies to each and every patient, whether

or not their insurance is privately provided.

The government then directs physicians to

undertake what it considers the correct

and most economical treatment.

This system of monitoring your healthcare

is exempted, to a very high degree, from

federal privacy laws (Chapter 35 of Title

44 U.S. Code) and from judicial review.

This government oversight ensures that

no patient will have medical privacy any

longer. Federal authorities will be kept

informed about every visit and every

treatment administered—your physician

will be required to comply with these

rules or be penalized.

This incursion into your privacy goes

even further. Under these new provisions,

your other private records (such as bank-

ing) are also accessible and may be

provided to third parties if the federal

government feels it is appropriate. This is

part of the government’s plan to help

determine your eligibility for additional

programs. Rather than offering you

information on what is available and

leaving it to your discretion to decide,

they want to create a complete profile of

all your private information and then

target you for the programs that they

match to you.1

When the government is permitted to

decide what is appropriate and cost-

effective in your medical care, and your

physician is legally forced to offer you

only these measures, your doctor will no

longer be able to make their own

recommendations for your healthcare.

You will have no choice but to trust that

government regulators know what is best

for you, and that they will not misuse the

deeply personal information that will now

be disclosed to them.

This system of monitoring your healthcare is exempted, to a very high degree, from federal privacy laws ... This government oversight ensures that no patient will have medical privacy any longer. Federal authorities will be kept informed about every visit and every treatment administered—your physician will be required to comply with these rules or be penalized.

SEE ‘ACT’ PG 8

$0.9TRILLION

PRESIDENT’S PROMISED 10-YEAR COST

Cost of President’s Health Law Rises with Each New Estimate

$1.4TRILLION

FY2010-2019ESTIMATE

ESTIMATE FY2011-2012ESTIMATE

FY2012-2021ESTIMATE

FY2013-2022ESTIMATE

FY2014-2023ESTIMATE

$1.7TRILLION

$2.0TRILLION

$2.3TRILLION

$2.6TRILLION

Estimates of the gross outlays under the President’s health care law in nominal dollars using CBO estimates of major coverage provisions, as well as Senate Budget Committee Republican projections based on CBO estimates of the remaining costs. Sources: CBO. Produced by SBC Republican staff. Ranking Member Jeff Sessions, budget.senate.gov/republican

3GENERATIONAMERICA.ORG

THE STATES RESIST OBAMACARE

One of the few bright spots in the Supreme

Court’s ruling on Obamacare was its 7–2 decision

striking down the Obama administration’s

attempt to blackmail states into going along with a

massive and costly expansion of Medicaid. Barely a day

later, Florida governor Rick Scott announced that his state

would not expand Medicaid eligibility to 133 percent of

the poverty level, which comes out to roughly $30,000

per year for a family of four, or allow single, childless men

to participate in the program. Earlier, Scott had rejected

another key component of Obamacare, refusing to

establish a state insurance exchange. He had even

returned grants and other funding that the previous

governor had received to help implement the legislation.

Scott was quickly joined by at least six other GOP

governors in rejecting the Medicaid expansion, includ-

ing governors Branstad (Iowa), Brownback (Kansas),

Haley (South Carolina), Heineman (Nebraska), Jindal

(Louisiana), and, not surprisingly, Scott Walker (Wis-

consin). At least seven other governors, including

Bentley (Alabama), Bryant (Mississippi), Daniels

(Indiana), Deal (Georgia), Fallin (Oklahoma), McDonnell

(Virginia), Perry (Texas), and Jay Nixon (Missouri), a

Democrat, had previously made statements suggesting

that they were unlikely to expand their programs.

Nevada had earlier passed regulations paving the way

to participate in the expansion, but Governor Sandoval

has since indicated he may reconsider.

In rejecting ObamaCare’s Medicaid expansion, these

governors will be saving their state taxpayers billions of

dollars. Initially, the federal government would have

provided additional funding to cover the expansion, but

those additional funds would have been phased down,

starting in 2017. Eventually state taxpayers would have

had to pick up much of the extra cost. For example, over

ten years, the Medicaid expansion would have cost

taxpayers in states such as Florida, Kansas, and Texas

more than $20 billion each, while in New Jersey, for

example, the expansion could cost as much as $35 billion.

(In fairness, a few states such as California do emerge as

net winners under the expansion formula, but they are

clearly the exception, and there are plenty of other

reasons why they should resist participating.)

On the other hand, if a state does not expand its Medicaid

program, most of those who would have been eligible for

Medicaid will now become eligible for subsidies through

ObamaCare’s health-insurance exchanges. Those subsi-

dies are paid in full by the federal government. That much

should be an easy call for any fiscally responsible gover-

nor, although the reasons to forgo the exchanges and the

subsidies they entail are strong as well.

Beyond the Medicaid expansion, at least four governors

NEWS OPINION

BY MICHAEL D. TANNER, THE CATO INSTITUTE

have joined Governor Scott in explicitly refusing to set up a state-based

insurance exchange: Jindal, Perry, and Walker, as well as Democratic New

Hampshire governor John Lynch. Perhaps as many as 35 other states

have simply not taken the actions necessary to establish exchanges. That

may be less explicit a revolt, but it has the same result.

Of course, if states refuse to set up an exchange, ObamaCare gives the

federal government the authority to step in and operate an exchange itself

in those states. But there is reason to doubt that the federal government

has either the ability or the money to do so. Congress has not appropri-

ated any funding for this purpose and seems unlikely to do so.

More important, as my colleague Michael Cannon has discovered, a

little-discussed provision of ObamaCare makes federal subsidies for

insurance available only through those exchanges that the states set up

themselves. So, while the federal government does have the power to

create exchanges in states that refuse to do so, it cannot offer subsidies

through those federally run exchanges.

Moreover, it is those subsidies that actually trigger the penalty under

ObamaCare for employers who fail to provide workers with insurance.

ObamaCare requires employers with 50 or more workers to provide

health insurance or pay a tax, but only if at least one employee qualifies

for subsidies under the exchange. Therefore, if subsidies can be

provided only through a state-authorized exchange, a state could

potentially block the employer mandate altogether, simply by refusing

to establish an exchange.

The Obama administration and the IRS, unsurprisingly, have claimed

that they have the right to unilaterally rewrite the law, yet again, to

close this loophole. But, at the very least, this would be open to legal

challenge. And perhaps next time the Supreme Court will get it right.

So, by refusing to go along with ObamaCare’s Medicaid expansion and

by blocking state-run exchanges, governors are not just saving state

taxpayers money. They are potentially reducing future federal spending

by as much as $1.5 trillion over the next ten years.

While congressional Republicans have been reduced to taking symbolic

repeal votes, and Mitt Romney struggles to determine whether or not

the individual mandate is a tax, governors—and state legislators—have

become the real heroes of the fight against ObamaCare.G

Michael Tanner is a senior fellow at the Cato Institute and author of

Leviathan on the Right: How Big-Government Conservatism Brought

Down the Republican Revolution. SOURCE: CATO.ORG

BY LAWRENCE KUDLOW

In the hours following the Supreme

Court’s decision to ratify ObamaCare,

Romney got $4.6 million in donations

from 47,000 individuals. The tide is

with him. The Supremes are a game-changer.

But Romney has to make the case. He needs to

link the anemic jobs and economic situation to

the ObamaCare tax, spend and regulate fiscal

drag. And he has to add to that mix the dangers

to our freedoms embodied in Justice John

Roberts’ expansion of the power to tax our

personal behavior.

Scott Rasmussen says the idea of ObamaCare

repeal has held steady at around 54 percent ever

since its passage in March 2010. This reveals the

dynamic political opportunity that Romney has.

Again, it’s a three-pronged attack: the anemic

economy, the ObamaCare costs that are stifling

the economy and the John Roberts expanded

power of taxation that will bring us more man-

dates, more entitlements and less personal

freedom, all of which will further cripple the

economy.

One way of looking at Roberts’ slight-of-hand

decision to vote in favor of ObamaCare is that a tax

is a tax is a tax. As a non-lawyer, I see the Roberts

vote as a massive expansion of federal government

taxing power. Just what we don’t need.

Supply-siders like myself argue that when you tax

something, you get less of it. With Roberts

throwing in with the liberals on the court to

expand federal tax powers, we now face the

John Roberts Is a Super-taxer

5GENERATIONAMERICA.ORG

massive threat of ultra-slow economic

growth in the U.S. for years to come.

The Roberts court has served up a “tax

mandate” that is more powerful than the

still-limited Commerce Clause regulatory

mandate. Roberts has created a huge

new loophole. Instead of new purchase

mandates, we’ll have new purchase

tax mandates.

This expanded tax power could force me

to eat broccoli if the government so

chooses, or make me put solar panels on

my home. Gov. Bobby Jindal now worries

about the people who “refuse to eat tofu

or refuse to drive a Chevy Volt.” Not

because of the Commerce Clause, but

because of the new tax-mandate clause.

You’ll be taxed heavily if you don’t do

what the government wants you to do.

And don’t we have enough taxes already

in this country? And what about the tax

threats that are coming down the road?

Repealing the Bush tax cuts and adding

on the ObamaCare tax hikes will produce

outrageous marginal tax rates of roughly

45 percent for successful earners,

dividend investors and small-business

owners. In other words, European-style

taxes, which suggests anemic European-

style growth.

Americans for Tax Reform estimates that

ObamaCare contains 20 new or higher

taxes on American families and small

businesses. Investor’s Business Daily says

this comes to a $675 billion tax hike over

the next decade. Steve Moore of The Wall

Street Journal editorial board cites

Congressional Budget Office estimates

that roughly 8 million (or 76 percent of)

middle-class taxpayers earning less than

$120,000 a year will shoulder the new

ObamaCare tax mandate authorized by

Roberts.

And this whole panoply of ObamaCare

taxes is already one big drag on the

economy. Just in recent days, revised

gross domestic product came in at 1.9

percent, and real consumer spending was

essentially flat. Job growth has slowed

markedly, as have new factory orders.

Economists on Wall Street are looking for

only 2 percent growth this year. The Fed

is so worried about the economy it might

launch another counterproductive

quantitative easing.

Meanwhile, health care premiums are

going up, not down. Mandated one-size-

fits-all health services and insurance will

incentivize businesses to pay the fine and

push employees into the state exchange

systems. And this will drive up the

subsidized entitlement even more.

The CBO now estimates that ObamaCare

spending will hit $1.8 trillion over the next

10 years. That’s a number that started out

at only half as much. But that’s what

happens when you install European-style

entitlements. You threaten to bankrupt

the nation’s finances. Or you threaten to

literally tax us into perpetual subpar

growth and high unemployment.

And that’s the case Romney has to make.

But he has to hammer away, day by day.

He needs to make these points if we’re to

end the malaise.G

To find out more about Lawrence Kudlow and read

features by other Creators Syndicate writers and

cartoonists, visit the Creators Syndicate web page

at creators.com. © 2012 CREATORS.COM.

NEWS & OPINION | POLITICS

BY RICHARD W. RAHN

When President Obama

announced that he again

wanted to increase taxes on

the top 2 percent of taxpay-

ers, I would have recommended to Mitt

Romney that he reply by saying:

“President Obama has called for a tax

increase on job creators, which will only

fund the government for eight days,

while I have an economic growth

program that will fund the government

for eight years and beyond.”

Mr. Romney is being justifiably criticized

for not delivering a clear and concise

description of his economic plan. Since

he has not done it, I will give it shot.

I don’t know if Mr. Romney will turn out

to be another Ronald Reagan when it

comes to taxes, spending and regulation,

or will fall seriously short as did those

who succeeded Mr. Reagan (except for

President Clinton on spending). What I

do know is that Mr. Obama will almost

certainly increase taxes, spending and

regulations, if re-elected.

Mr. Romney needs to clearly state the

economic problem and the solution in a

few bullet points that people can

remember. (Most people cannot

remember all Ten Commandments so

any candidate who has a program with

more than a very few points has little

hope the public will remember.)

The problemThe economy is growing too slowly and

producing too few jobs because:

Obama Plans to Fund Government for Eight Days

$2.7 TRILLION

OBAMACARE SPENDING,

NEXT 10 YEARSSOURCE:

HOUSE REPUBLICAN COMMITTEE

� The government is wasting money

on programs that don’t work or

work poorly.

� Individual tax rates are too high, and

the tax code is too complex so job

creators are discouraged from fully

investing and hiring.

� The U.S. corporate tax rate is the

highest in the world, causing business-

es and entrepreneurs to flee or avoid

the United States.

� Regulations have been growing so

rapidly and are so complex that

business people are inhibited from

expanding their businesses and hiring

new workers because of the cost of

trying to understand and comply with

the vast new regulatory state.

The solution � First, my administration will bring the

level of government spending down to

what it was at the end of Clinton

administration (18.2 percent of gross

domestic product).

� Second, we will undertake tax reform

to bring down rates to a level no higher

than those after the Reagan tax reform

in 1986, a maximum rate of 28 percent

(which produced tax revenues of 18.4

percent of GDP).

� Clinton/Gingrich-era spending policies

coupled with Reagan-era tax policies

will provide a balanced budget at about

18.2 percent of GDP.

� In addition, we will cut the corporate

tax rate to a maximum of 25 percent to

make us more internationally competi-

tive, and we will have a moratorium on

all new regulations until we can make

sure that regulations’ benefits exceed

their costs.

� Finally, all federal departments will be

required to make sure that all of their

existing regulations are not unduly

complex and vague, and meet reason-

able cost-benefit standards.

The bumper stickerReagan tax rates + Clinton spending

policies = high growth and full

employment!

The advantage of this approach is that it

has been proved in the recent past—Rea-

gan-like tax rates and Clinton-like

spending policies can result in taxes and

spending being at about 18.2 percent of

GDP—a balanced budget. Republicans

love Reagan, and the more sensible

Democrats and many independents

understand that the spending policies in

effect at the end of the Clinton adminis-

tration did provide an adequate “safety

net” even by their definition. The econo-

my was growing rapidly, with near full

employment in both the last Reagan and

Clinton administrations. Saying that his

administration is going to duplicate the

best of both Reagan and Clinton adminis-

trations would be a political winner,

provided

Mr. Romney and his surrogates say it over

and over again. People can understand

that program, and it would make Mr.

Romney sound less partisan and more

statesman-like, which is important in

winning over independents and disaf-

fected Democrats.

Mr. Romney would need to detail his

proposals for the policy wonks but not

necessarily for the general public. His

current proposals are very near what I am

suggesting, so only a relatively little

tweaking would be necessary (my

personal preference is for substantially

less government).

It could be easily and creditably argued

that such policies should result in growth

rates of more than 4 percent, based on

past performance. These policies would

almost certainly result in the good side of

what economists refer to as Mitchell’s

Golden Rule of Fiscal Policy: “Good fiscal

policy exists when the private sector

grows faster than the public sector, while

fiscal ruin is inevitable if government

spending grows faster than the produc-

tive part of the economy.”G

Richard W. Rahn is a senior fellow at the Cato

Institute and chairman of the Institute for Global

Economic Growth. © 2012 XYZ

These policies would almost certainly result in the good side of what economists refer to as Mitchell’s Golden Rule of Fiscal Policy: “Good fiscal policy exists when the private sector grows faster than the public sector, while fiscal ruin is inevitable if government spending grows faster than the productive part of the economy.”

7GENERATIONAMERICA.ORG

Patient Protection & Affordable Care Act, P.L. 111-148; Health Care & Education Reconciliation Act, P.L. 111-152 Prepared by: Joint Economic Committee, Republican Staff Congressman Kevin Brady, Senior House Republican Senator Sam Brownback, Ranking Member.

If you disagree with the treatments

prescribed by the federal government—

and not by your own doctor—you will have

no choice but to accept them anyway. The

lack of judicial review mentioned above

means that you cannot bring these

matters to court because the federal

government is exempted from legal action

on your part.

The law is a tangled mess of autocracy and

short-sighted decision making. It is a

daunting task to even partially grasp the

implications to us and the future of

healthcare in not only this country, but, in

this world. Amidst all of the confusion, it

seems that two things are clear; the right

of the people to be secure in their persons

and in their papers, has been violated.G

ACTCONTINUED FROM PG 3

1 Patient Protection and Affordable Care Act Section 1311 (h) (1). Beginning on January 1, 2015, a qualified health plan may contract with- (B) a health care provider only if such provider implements such mechanisms to improve health care quality as the Secretary may by regulation require. 2. SEC. 1561. HEALTH INFORMATION TECHNOL-OGY ENROLLMENT STANDARDS AND PROTOCOLS. ‘‘(a) IN GENERAL.— ‘‘(1) STANDARDS AND PROTOCOLS.—Not later than 180 days after the date of enactment of this title, the Secretary, in consultation with the HIT Policy Committee and the HIT Standards Committee, shall develop interoperable and secure standards and protocols that facilitate enrollment of individuals in Federal and State health and human services programs, as determined by the Secretary. ‘‘(2) METHODS.—The Secretary shall facilitate enrollment in such programs through methods determined appropriate by the Secretary, which shall include providing individuals and third parties authorized by such individuals and their designees notification of eligibility and verification of eligibility required under such programs. ‘‘(b) CONTENT.—The standards and protocols for electronic enrollment in the Federal and State programs described in subsection (a) shall allow for the following: ‘‘(1) Electronic matching against existing Federal and State data, including vital records, employment history, enrollment systems, tax records, and other data determined appropriate by the Secretary to serve as evidence of eligibility and in lieu of paper-based documentation.

NEWS & OPINION | POLITICS

Dear Reader: Turning 62 seems to be one

of those magic milestones—and more and

more people seem to be celebrating by

filing for Social Security benefits the first

chance they get. According to the

Stanford Center on Longevity, the

majority of retirees choose to begin

receiving Social Security payouts within a

few months after age 62 or immediately

after they stop working, regardless of

economic or educational status.

The reasons for taking benefits early

appears to be primarily emotional—fear

that Social Security will disappear or just

because it’s possible to do it—rather than

considering if it makes long-term financial

sense. In fact, a new study by economists

John B. Shoven and Sita Nataraj Slavov

indicates that rather than putting extra

money in your pocket, taking Social

Security benefits early may likely leave a

fair amount of money on the table.

But studies aside, deciding the best time

to take your benefits is a personal

decision, based on your individual

situation. So before you join your friends

at the benefits table, I’d check your own

financial reality.

Do you need the money?The ongoing recession has made this a

serious question for a lot of people. For

those who have lost their jobs and are

having trouble finding other employment,

taking Social Security benefits early may

be essential to stay afloat.

On the other hand, if you’re still working

and you file at 62, not only will your

benefits be permanently reduced by

about 25 percent, $1 will be deducted for

every $2 you make above the annual limit,

which is currently $14,640. While you will

get the money back in the form of a

recalculated benefit when you turn 66,

the temporary reduction minimizes the

economic value of filing early. Plus, if you

make over a certain amount each year

(between $25,000 and $34,000 for

single filers; between $32,000 and

$44,000 for married filing jointly), you

will likely have to pay income taxes on a

percentage of your benefits.

Do the mathThere’s also another way to look at the

numbers. The study I mentioned earlier

makes a strong economic case for

delaying benefits, especially in a low-

interest environment like the one we’re in

now. First, if you delay taking your Social

Security benefits from age 62 to your full

retirement age (66 for those born

between 1943 and 1954), you’ll increase

your payout by 25 percent. And if you

continue to delay taking your benefits

until age 70, your payout increases by 8

percent each year. That’s equivalent to an

8 percent raise! The study suggests that

when interest rates are 3.5 percent or

below, the gains from delaying are

especially significant. In a close to

zero-interest world like ours, the numbers

speak for themselves.

Look at the personal sideOf course numbers are only one side of

the story. You also need to consider your

health and your family history of longev-

ity. The average life expectancy for

American women turning 62 this year is

85 1/2, for men it is 83. If you have a

serious illness or there are other factors

affecting your life expectancy, you might

be wise to take your benefits early.

However, if you are healthy and come

from a family of centenarians, you should

definitely consider waiting until 70 to

collect to give yourself a financial boost in

your later years.

Coordinate with your spouseIf you are married, it also makes sense to

coordinate the timing of your Social

Security benefits with your spouse. Even if

one spouse has never worked, he or she is

often still eligible to collect a benefit based

on their spouse’s work record. If either

spouse begins to collect early, their benefit

will be reduced. However, for two-earner

couples, and especially if there is a large

discrepancy in incomes, it may make sense

for the lower earner to take a spousal

benefit at age 66, while the higher earner

waits until age 70. The lower earner can

either continue receiving spousal benefits

or switch to their own benefit when they

FINANCE

Dear Carrie: I’ll be 62 next month. All my friends seem to be taking Social Security on their birthday. I’ve heard this may not be the wisest choice. What do you think? —A Reader

Why Is Everyone Filing for Social Security Early?BY CARRIE SCHWAB-POMERANTZ

9GENERATIONAMERICA.ORG

OPINION

BY TERRY SAVAGE

Q. Pardon me if this is a dumb question, but just how low can interest rates go? I’m barely earning anything on my CDs. And how long can this situation last?

A. That is not a “dumb”

question. In fact, it’s on the

minds of traders around the

globe. The very simple

answer is that interest rates could go

negative! As unlikely as that sounds,

there is precedent for negative interest

rates.

And I can anticipate your next question.

Yes, that means you would actually be

paying the bank to hold your money

That has happened before, primarily

when those who have investment capital

are fearful that it will not be returned if

they leave it in their own currency. The

owners of that money are willing to pay

for a “safe haven” for their money.

It happened in Switzerland in the 1970s—

when global fears of inflation sent money

running to the presumed safety of Swiss

banks and the Swiss franc. At one point,

deposits in Swiss banks were paying a

negative 0.4 percent! (That, of course,

was before the Euro.) And still, money

came flooding into Swiss banks.

Zero interest rates happened briefly in

Japan in the late 1990s, when savers there

were so afraid of the stock market, which

had collapsed, that they insisted on

putting their money in the bank, even at a

negative interest rate. In Sweden, in 2009,

in the midst of the financial crisis, their

central bank actually cut the deposit rate

to a negative 0.25 percent.

In the past few weeks, central banks of

Germany, the Netherlands and Belgium

have actually sold government securities

with slightly negative interest rates. There

was demand for these securities despite

the rates because of the perceived

security compared to the euro.

And with foreign money rushing to the

perceived safety of the U.S. dollar, some

recent U.S. Treasury auctions of TIPS—

zero coupon Treasury notes that protect

against inflation—have already been sold

with slightly negative yields.

So, yes, zero interest rates are a possibility

in the United States—and may even

become a policy tool of the Fed. You

might be interested to know that some

economists are discussing the possibility

of negative interest rates—a “tax on

money”—as a way of pushing money out

of the banks and into investments that

might otherwise benefit the economy.

The Fed’s current low-rate policy hasn’t

worked yet, and some think negative

rates may do the job.

So, where does that leave you—the saver

who planned to live on interest income?

This is where self-discipline comes in. The

search for higher yields absolutely means

you incur more risk. For example, you

could buy dividend-paying stocks that

yield far more than the 0.1 percent on

3-month Treasury bills. But stock prices

can fall—especially in a slowing economy.

You could buy insurance products that

offer higher yields—but also have

penalties to access your money if you

need it. You could buy bonds with higher

yields—but find yourself locked in to low

rates if inflation returns.

It’s tough, but leaving your money in

insured deposits that pay nearly no

interest may be the only answer for those

who need financial security. This is no

time to chicken out on your “chicken

money.” That’s The Savage Truth.G

Terry Savage is a registered investment adviser

and is on the board of the Chicago Mercantile

Exchange. She appears weekly on WMAQ-Channel

5’s 4:30 p.m. newscast, and can be reached at

terrysavage.com. © 2012 TERRY SAVAGE PRODUCTIONS.

DISTRIBUTED BY CREATORS.COM

Negative Interest Rates Are Possible

turn 70. As you can see, this type of

calculation can get extremely complex. I

strongly advise couples to get some help

from a qualified financial advisor or Social

Security expert before filing.

Make social security part of a bigger planWhile it is often wise to delay taking Social

Security benefits, your decision should

always be part of a larger retirement plan. I

would start by estimating what your yearly

expenses will be in retirement. Calculate

how much you can realistically draw from

your portfolio and how significant Social

Security will be to your overall financial

picture. And then coordinate with your

spouse. Just because the government

allows you to draw your benefits at 62—or

even at 66—doesn’t mean you should.

Your retirement plan is unique. What

someone else considers a wise decision

may not be the best move for you.G

Carrie Schwab-Pomerantz, Certified Financial

Planner™, is president of Charles Schwab

Foundation and author of “It Pays to Talk.” You

can e-mail Carrie at askcarrie@schwab.com. This

column is no substitute for an individualized

recommendation, tax, legal or personalized

investment advice. © 2012 CHARLES SCHWAB & CO., INC.

MEMBER SIPC. DISTRIBUTED BY CREATORS.COM

11GENERATIONAMERICA.ORG

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Diet Exercise

Love One Man’s Key to Long Life

BY DR. DAVID LIPSCHITZ

In nine months, I turn 70. I often ask myself, why am I so healthy? I feel so full of energy and able to do as much as or more than I did at age 40. My secret, I believe, is that I mostly eat right. I am overweight but not obese—no matter how hard I try, this is the best I am going to do—and I walk my dog briskly seven days a week for about 30 minutes.

I am very hopeful about the future and the plenty of opportuni-

ties available to make work and days interesting and exciting,

with the sense that I can continue to make a difference. I will

never retire.

Most importantly, I give love and respect to and receive it from

the many individuals I work with daily and for whom I have

great affection. I strive to be successful as a physician by

genuinely and truly loving my patients. I work particularly hard

on those who are the most difficult to love—the ones who

never get better, question your every suggestion, are often rude

and usually frustrated. These are the patients who are doctor

shoppers and more than anyone else need someone who will

never give up on them.

No question, love is the key to happiness, health and longev-

ity. It exists in many forms: in our faith, the love we have for

our patients, students, workers and friends. Love is a powerful

health tonic. And an important new study shows if you want

to live long and live well, do not be a curmudgeon.

HEALTH WELLNESS 17GENERATIONAMERICA.ORG

BY TERRY SAVAGE

When is it elder abuse—and

when is it an adult child trying

to make arrangements for a

parent who is losing the ability

to cope with the daily activities of living?

Every day, police and social workers and

others face these decisions, and last week,

it was my turn. It was pure coincidence

that a friend was checking into a small

hotel and ran into an elderly woman

sitting in the lobby and crying. After she

calmed down, she explained—and her

story was backed up by the desk clerk—

that her daughter had come with a power

of attorney and the police, and had

moved her husband of 62 years to a

nursing facility. She said they wouldn’t let

her come to visit.

She was staying alone in the hotel, with a

little money and their small dog. When

she revealed that she and her husband

had a substantial sum of money in the

bank as a result of selling their home, I

grew more concerned. Financial elder

abuse is a growing crime. Sadly, the

statistics reveal that elder abuse is almost

always a family crime.

The most recent reliable study of elder

abuse was done by the National Center

on Elder Abuse in 2005. But according to

that report, between 1 million and 2

million Americans age 65 or older have

People who are kind, loving, considerate, laugh a lot and are

friendly to everyone are twice as likely to make it to the ripe old

age of 100. Do not bottle up your feelings and if possible, do not

speak ill of others.

These personality traits may well be genetic—the most powerful

predictor of living to 100 is the ages at which your parents died.

Being sweet, kind, good and living long may all be gifts inherited

from your parents. But if you are difficult to get along with, seek

help and try to change. Your life will be better and may be longer.

Love people, love life, love your work, be a kind and good person

and longevity is all but assured. But people with all these wonderful

attributes can lose much and become lonely. And new research in

the Archives of Internal Medicine documents the powerful negative

effects of loneliness.

For example, in a study of 45,000 people who had a heart

attack, patients who lived alone were 24 percent more likely to

die during a four-year follow-up period than those who lived

with a spouse or a roommate.

But living alone does not mean that you are lonely. Many people

are perfectly content to be by themselves, love their own company

and cope well. However, those individuals who reported that they

were lonely were 46 percent more likely to die than those who did

not say they were lonely. Lonely people are far more likely to be

depressed, be sedentary, eat poorly and have poor health habits

such as smoking or drinking. It is not

surprising, therefore, that life expec-

tancy is reduced.

Any man in a long-standing, loving

and intimate relationship has a 50

percent chance of living 10 years

longer than a man living alone.

Women benefit from such a relation-

ship as well, but only by three years. Married men are more likely

to have medical checkups, wear a seat belt, drink in moderation,

be compliant with medications, eat right and exercise. And if the

woman dies before her husband, he has a 30 percent chance of

death within a year.

Studies also indicate that the happier the marriage, the more

quickly the widower remarries. By contrast, many women state

that they were married to the best partner and no other man

could ever match up.

My advice, however, is to remember that as we grow older,

loneliness becomes a threat and companionship, or sometimes

more, is definitely a tonic for a longer and better life.G

Dr. David Lipschitz is the author of the book Breaking the Rules of Aging; more

information is available at: drdavidhealth.com. To find out more about Dr. David

Lipschitz and read features by other Creators Syndicate writers, visit creators.

com. © 2012 CREATORS.COM

Elderly Suffer When Decisions About Their Care Are Unclear

Any man in a long-standing, loving and intimate relationship has a 50 percent chance of living 10 years longer than a man living alone.

HEALTH & WELLNESS

been injured, exploited or otherwise

mistreated by someone on whom they

depended for care or protection.

It’s as difficult to imagine a family taking

advantage of an elderly parent as it is to

imagine parents who would abuse their

children. But it happens with even more

frequency in these tough economic times.

How could anyone who suspects this

kind of treatment stand by and not get

involved? That certainly wasn’t some-

thing I could forget. So I called the local

suburban police department, and police

and a social worker came right over to

interview the woman. She was distraught

but able to answer all their questions.

Because of the woman’s allegations that

the daughter now controlled her bank

account, an investigation was opened,

and I left satisfied that her complaints

would be heard.

The next day, I went back to the hotel,

drove her to the nursing home and

witnessed a very tender reunion with her

husband. I also met her daughter, an aide

at the facility, and heard the other side of

the story. She said she had no choice, as

her father is suffering from Alzheimer’s

and her mother could not take care of

him. She gave me a long list of their

dangerous experiences and her multiple

interventions in their living conditions.

She was hoping to move her mother into

the assisted-living section of the nursing

home, keeping them at least in the same

building. And she would use their money

to pay for it, saying she didn’t want a

penny for herself.

So what was the final word, you might

be wondering? I cannot really tell you

yet how it will work out, or whom I

believed most. The police are still

investigating the financial aspects, social

services will stay on top of the situation—

and I promised to visit again to make

sure her move in to the assisted-living

facility goes smoothly. I left them

holding hands, agreeing that being near

each other was most important.

You can’t have participated in this

experience without thinking about

yourself and your family. What plans

have you made? What documents have

you executed? What relative or friend do

you trust to make these decisions for

you—when you are least able to be heard,

and most likely to be confused and

resentful of changes forced on you?

Now is the time to make a revocable

living trust, naming a successor trustee to

handle your financial affairs if you are in

an accident or unable to make decisions

for yourself. And now is the time to create

a health care power of attorney and a

living will. And if you need help finding

resources to do this, I recommend going

to naela.org—the National Association of

Elder Law Attorneys. There you can find

links to a list of elder law specialists in

your community.

And if you suspect elder abuse, contact

the National Center on Elder Abuse, a

part of the U.S. Administration on Aging,

at ncea.aoa.gov, or contact them at

855-500-3537 (ELDR).

Their website home page has quick links

to both statistics and resources in every

state, including telephone hotlines to

report abuse. And for eldercare resources

in your community available to those

who have elderly parents or neighbors,

go directly to eldercare.gov.

The 7th Annual World Elder Abuse

Awareness Day was just a few weeks ago,

on June 15, 2012. I missed that day, never

noticing the media promotion. But I

didn’t miss a chance to step in a few days

ago. And I know that if everyone who

reads this column would just speak up

and report suspected elder abuse, we

could all make a big difference for the

generation that made it possible for us to

be here. And that’s The Savage Truth.G

Terry Savage is a registered investment adviser

and is on the board of the Chicago Mercantile

Exchange. She appears weekly on WMAQ-Channel

5’s 4:30 p.m. newscast, and can be reached at

terrysavage.com. © 2012 TERRY SAVAGE PRODUCTIONS.

DISTRIBUTED BY CREATORS.COM

“...between 1 million and 2 million Americans age 65 or older have been injured, exploited or otherwise mistreated by someone on whom they depended for care or protection.”

19GENERATIONAMERICA.ORG

TRAVEL

BY JIM FARBER

On July 17, 1897, the Seattle Post-Intelligencer ran a banner

headline proclaiming “Gold! Gold! Gold!” and reporting

that 68 men fresh from Alaska had arrived in town loaded down

with “stacks of yellow metal.” The rush was on!

They called themselves “stampeders”—those hearty men and

women who found themselves in Skagway, Alaska, bound for the

gold fields of the Klondike. But before they could reach the Yukon

River that would take them to Dawson City and the gold fields,

they faced the arduous challenge of climbing either the Chilkoot

or White Pass trail. And to make the task even harder, the Cana-

dian government required that every stampeder haul 1 ton of

supplies with them to ensure they at least had a shot at surviving.

Three years after the rush began, on July 29, 1900, a pair of

railroad gangs, one working from the north, the other from the

south, met in the Canadian village of Carcross. There they drove

the final spike of the 110-mile-long White Pass and Yukon Route

railroad. It was a miraculous feat of railroad construction that

had required climbing mountains thousands of feet high, blast-

ing tunnels through solid rock and building sky-high trestles

over cascading creeks at temperatures sometimes as low as 60

KLONDIKEKLONDIKEyaaaaaaaaaaaaaaaaaaazNEXT STOP THE

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WHITE PASS AND YUKON ROUTE907- 983-2217

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SKAGWAY SIGHTS AND ACCOMMODATIONS 888-762-1989

skagway.com

A vintage train between Skagway, Alaska, and White Pass, Alaska. PHOTO: DONALD FINK / 123RF STOCKPHOTO

More than 35,000 men worked to complete the White Pass and Yukon Route,

which in 1994 was designated an International Historic Engineering Landmark,

taking its place alongside the Statue of Liberty, the Panama Canal and the Eiffel Tower.

21GENERATIONAMERICA.ORG

below zero. More than 35,000 men worked to complete

the White Pass and Yukon Route, which in 1994 was

designated an International Historic Engineering Land-

mark, taking its place alongside the Statue of Liberty, the

Panama Canal and the Eiffel Tower.

Today the narrow-gauge railroad transports tourists

instead of gold-seekers, as well as weary hikers off

the Chilkoot Trail happy for a comfortable ride back to

Skagway. Whether they choose to ride in one of the

classic coach cars behind a gaily painted green and

yellow diesel or be pulled by a historic steam locomotive,

Engine No. 73, a trip on the White Pass and Yukon Route

is unforgettable.

Located conveniently adjacent to Skagway’s bustling

cruise ship wharf, the White Pass and Yukon Route is a

popular day trip as well an ideal point of departure for

visitors planning to continue by motor coach (from

Carcross) into the heart of the Klondike. U.S. citizens

who choose a trip that crosses the border into Canada

will need a passport.

In the early days of the gold rush new arrivals had two

choices for getting over the mountains: the steeper but

more direct Chilkoot Trail out of Dyea or the longer but

somewhat more gradual White Pass Trail out of Skag-

way. Both trails were arduous, and both had drawbacks.

The Chilkoot and its infamous “golden stairs” could only

be ascended by foot. The White Pass could be navigat-

ed with pack animals; however, an estimated 3,000

horses died trying to make the climb to the summit in

the dead of winter. The Chilkoot was also deemed safer

because bandits commonly set upon travelers on the

White Pass Trail.

Today’s passengers can look down into Cutoff Canyon

where the remains of the original White Pass Trail are

clearly visible, along with the bleached bones of the

horses that died making the climb.

Why would the stampeders choose to make such a

hazardous climb in winter? Greed. Their goal was to reach

Lake Bennett at the top of the pass, where they could

make camp and spend the winter building boats in

anticipation of the spring thaw. At the peak of the gold

rush Lake Bennett was home to 30,000 fortune hunters.

When the ice broke on May 29, 1898, it was reported that

more than 7,000 crafts set sail. Some would strike it rich.

Most would not, while others would drown in the rapids

of the Yukon River before they ever saw Dawson City or

panned a nugget of gold.

The trains of the White Pass and Yukon Route that go

on to Carcross also stop at Lake Bennett. The lunch stop

allows time for passengers to walk the rocky shoreline

where the gold-seekers camped and built their boats.

Surprisingly there are still remnants of their encamp-

ments: rotting pilings, long rusty nails and the beautiful

log church where they prayed for success.

The railroad offers a variety of itineraries beginning in

May and running through mid-September. The shortest is

the White Pass Summit Excursion ($112), a popular

3½-hour round trip that takes visitors to the summit but

does not cross into Canada. The Yukon Adventure can

be made as a one-way or round trip from Skagway to

Carcross with a return by motor coach. Another option

for true rail buffs is the Fraser Meadows Steam trip ($155)

that runs Mondays and Fridays only pulled by Engine 73.

Special fares for children 12 and under are also available.G© 2012 CREATORS.COM.

TRAVEL

PHOTOS ABOVE, L TO R: GNOHZ / 123RF STOCK PHOTO, PHOTO COURTESY JIM FARBER, IMAGEX / 123RF STOCK PHOTO.

Left to right: A historical train used during the Klondike Gold Rush; gold-seekers wintered on Bennett Lake and built boats for the long trip to Dawson, Alaska; Chilkoot Trail, from the gold-mining era, Skagway, Alaska.

NEW YORK CITY’S

CHELSEA RIVIERA

BY DIVINA INFUSINO

Neighborhood by neighborhood, New York City

continues its transformation. Formerly gritty areas,

like the Meatpacking District, have undergone

makeovers in the last decade, becoming enclaves of urban

reinvention and relatively safe tourist destinations.

The latest locale to have its Cinderella moment is the West

Chelsea district, sometimes called the Chelsea Riviera due to its

proximity to the Hudson River. The large and loud warehouse-

style clubs and the city-owned housing projects that once

defined the vicinity still stand in this community located roughly

between West 17th Street and West 30th Street and bordered

by 10th Avenue. But all the landmarks of urban renewal are

moving in or already have—art galleries, trendy restaurants,

edgy designer shops, a boutique hotel, renovated or glistening

new condos, and street beautification paid for by public or

private money.

In West Chelsea, however, that beautification process has

occurred 30 feet above street level in the form of the High Line.

A public parklike walkway, the High Line was created from a

The Falcone Flyover rises above the High Line in the West Chelsea area of New York City between West 25th and West 27th streets. PHOTO COURTESY OF IWAN BAAN.

A TRANSFORMED CULTURAL DESTINATION FOR

ART, SHOPPING, FOOD, AND OPEN SPACE

23GENERATIONAMERICA.ORG

historic elevated freight rail line that runs

the length of the neighborhood as well as

beyond to the adjacent Meatpacking

District. Fully opened about one year ago,

the High Line is functioning as the Prince

Charming in this city fairy tale, already

attracting 3,000,000 visitors in the

past year.

With modern design touches in its railings

and benches and its sustainable foliage of

plants and grasses that grew up around the

tracks over the 25 years that the rail line was

out of use, the High Line is primarily a prom-

enade where visitors can get a low-flying

bird’s-eye view of the city. On temperate

days and even in the winter months,

throngs of people stroll the mostly concrete

plank pathways, pausing sometimes to soak

in views of the newer high-rises currently

under construction, the older buildings that

tell of the area’s industrial past and at some

points the Statue of Liberty and the Empire

State Building.

Yet although the High Line is no doubt the

highlight of the area, in many ways it is

late to the Chelsea Riviera party. Like so

many urban-renewal movements, the first

settlers to upgrade this territory were the

art galleries, especially those priced out of

Soho, New York’s former art-scene hub.

Now many of those establishments

populate West Chelsea streets in such

close proximity that visitors can wander

from door to door and linger in some of

the most prestigious art showcases in the

world, including the Gagosian Gallery on

West 24th, the Maryanne Boesky Gallery

on West 22nd and the Pace Gallery on

West 25th Street. In these places and in

many of the other 30 or more galleries

lining the streets, the shows can rival

museum-quality exhibits in other cities—

and with no entry fee.

Of course the chic shops have followed, like

the Comme des Garçons store, which feels

more like an art-installation space than a

shopping destination. The clothing racks

are worth perusing even if they are outside

the budget or fashion aesthetic.

Artisan pizza places such as Ovest

Pizzoteca; great breakfast, lunch and

dinner spots such as Boutique Eat Shop

(try the cornflake encrusted French toast);

and finer dining like Trestle on Tenth,

which serves Swiss-Italo-inspired cuisine

(scallops with flageolets beans, butternut

squash and house-made sausage) also are

gathering a following.

The district came of age, so to speak,

when the Hotel Americano opened. True

to its surrounding environment, this

boutique hotel wears its minimalism like a

badge of honor. The rooms are small but

efficient. They come equipped with a

platform bed on the floor, a black leather

bean-bag-style chair for seating, gleaming

glass and stainless-steel bathrooms with

almost miniature fixtures and an iPad

resting on a wide glass shelf that substi-

tutes as a desktop computer. The vibe is

stylish, the food is good, and the service is

surprising friendly and accommodating.

The financiers and celebrities are claiming

penthouses and apartments in the new

residential buildings. And the people who

lived in West Chelsea before it became the

belle of the New York hipster ball are

already complaining about the increase in

traffic around the area. But for the visitor,

West Chelsea provides a pastiche of old

and modern New York and a city in

transition.G

To read features by other Creators Syndicate writers

visit creators.com. © 2012 CREATORS.COM

TRAVEL

TRUSTWORTHY INFORMATION | POWERFUL BENEFITS | TRADITIONAL VALUES

GenerationAmerica.org

Access to the High Line is off

10th Avenue at the following

intersections: Gansevoort

Street, 14th Street (elevator

access), West 16th Street

(elevator access) , West 18th

Street, West 20th Street ,

23rd Street (elevator access),

West 26th Street, West 28th

Street, West 30th Street

(elevator access). For more

information, visit

thehighline.org.

HOTEL AMERICANO518 W. 27th St.

New York, NY 10001

212-525-0000

hotel-americano.com

WHEN YOU GO:

Fully opened about one year ago, the High Line is functioning as the Prince Charming in this city fairy tale, already attracting 3,000,000 visitors in the past year.

24GENERATIONAMERICA.ORG