In a way, we could have had our cake and eaten it as well. If the money paid into Medicare had gone into the market, been invested, the amount now required for every person on Medicare would be available today. Instead, the government simply put the money in its own pocket--general account--and spent it as it came in. In addition, Medicare money was also put into Medicaid and other programs for the poor, so that the pot for Medicare would have been bigger than it is, if it had not been spent elsewhere.
What the author said is totally evident in the present debate. We see people who are not on Medicare suggesting that the old farts should take their losses and die like good soldiers so that the next generation doesn't have to pony up.