Krugman on social security
by David Atkins
Paul Krugman explains the fake social security crisis again for the 10,000th time:
Jared Bernstein and Dean Baker are both mad, understandably, at Robert Samuelson, who pulls out, for the 7 millionth time, the old Social Security bait and switch. Here’s how it works: to make the quite mild financial shortfall of Social Security seem apocalyptic, the writer starts out by talking about Social Security, then starts using numbers that combine SS with the health care programs — programs that are very different in conception, financing, and solutions.
And then the writer ends by demanding that we cut Social Security, as opposed to addressing health care costs.
The serious (as opposed to Serious) thing to say here is that on current projections, Social Security faces a shortfall — NOT bankruptcy — a quarter of a century from now. OK, I guess that’s a real concern. But compared to other concerns, it’s really pretty minor, and doesn’t deserve a tenth the attention it gets.
It’s also worth noting that even if the trust fund is exhausted and no other financing provided, Social Security will be able to pay about three-quarters of scheduled benefits, which would mean real benefits higher than it pays now. I don’t want to see that happen, but it’s worth keeping in perspective — especially when you look at the solutions “reformers” propose, which all seem to involve reducing future benefits relative to those currently scheduled.
If there’s any debate in this country that more fully proves how full of shit professional centrists are, and how totally captured our politics are by Wall Street, it has to be the “debate” over Social Security. That supposedly intelligent people spend any time arguing about this when there are so many other urgent problems is madness.
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