[Subscription required] We aren’t going back to the 1970s, but the central bank isn’t being realistic about the risk of higher prices.

In April 2020, then-presidential-candidate Joe Biden proposed lowering the Medicare eligibility age from 65 to 60. Surprisingly, Medicare at 60 and its likely consequences—from how many people it would cover to its fiscal costs— have not been explored in much depth.2 The current proposal comes with several unanswered policy questions. Would coverage be mandatory or voluntary? Would new recipients be subject to the same rules as traditional Medicare enrollees or have their own rules? Would late-enrollment penalties apply to individuals who wait until 65 to enroll? 

Whether as a funding mechanism or a matter of fairness, soaring capital gains rates will fail.