>>So, that reserve is exactly what my teacher would have now had she put that money in a compounding account.
>>Had your scheme been in place, the US would have the money instead of my teacher.

Not sure why you keep quoting your teacher in 1955 who preceded Medicare if I understood correctly. Or assuming that every underpaid $ was saved rather than spent.

But OK, I agree that in an account, $50 in 1955 is worth just under $500 now. But as I quoted earlier, $50 on the US sharemarket in 1955 now is at least $27,000. I'd expect a competent fund manager to do far better than that.

E.g. if $50 paid annually from 1955 to 1964 then was handed over to Warren Buffett when he took over Berkshire Hathaway that year, it would be worth over $5 million today. A lesser manager might only get to $1M - but that's still enough to pay a lot of medical costs from just 10 years' contribution by one person. Repeat that every year and for every worker, and now Medicare would be a crown jewel handed over to the young rather than yet another liability.