We're Being Conned on Social Security
How We Could Easily Raise Benefits or Allow People to Retire Earlier
Friday 03 September 2010
by: Joshua Holland | AlterNet
They just want to steal our money.
Allow me to take a moment to fix that whole “Social Security crisis” that has everyone in Washington gnashing their teeth. When you see how easily it’s done, you may begin to realize that whenever our elites start chattering about “tax-gaps," they’re almost certainly trying to rip you off -- making a slick grab for something to which you are, ultimately, “entitled.”
But why stop there? Why play defense? After we fix the program, why don’t we increase Social Security benefits? Why not lower the age of retirement? With unemployment hovering around 10 percent, and some economists, like James Galbraith, arguing that at least some of those lost jobs are never to return, why not open up some jobs for the young ‘uns and put a dent in the number of Americans who are out of work? Maybe with more demand for workers, employers would see their way to raising wages a bit, bucking the long-term trend of stagnation that the majority of Americans have endured over the past 30 years. Think about it: if you enter the labor market at age 20, isn’t busting your ass for four decades long enough to merit a dignified retirement? We are a wealthy country -- we can afford it.
According to Bruce Bartlett, in an incredibly typical scare-piece in billionaire granny-basher Pete Peterson’s Fiscal Times, that’s not true. Social Security’s problems are immense. “The 2009 report of Social Security’s trustees,” Bartlett writes, “showed a long-term actuarial deficit in that program of $15 trillion.” That is an almost unimaginably large number, given that the entire annual output of the United States was only $14 trillion last year.
But what does it really mean? Well, it turns out that Bartlett’s not even referring to the dubious 75-year projection of the Social Security “gap.” His terrifyingly big figure actually represents the program’s “shortfall” stretching out to infinity. That’s right -- it’s the program’s “unfunded liability” if everything remains as projected forever, and assuming the earth isn’t destroyed by a moon-sized meteor at some point before forever arrives. (The geeks at the American Academy of Actuaries have suggested that the “infinite horizon” measure is complete nonsense.)
(More here.)
Friday 03 September 2010
by: Joshua Holland | AlterNet
They just want to steal our money.
Allow me to take a moment to fix that whole “Social Security crisis” that has everyone in Washington gnashing their teeth. When you see how easily it’s done, you may begin to realize that whenever our elites start chattering about “tax-gaps," they’re almost certainly trying to rip you off -- making a slick grab for something to which you are, ultimately, “entitled.”
But why stop there? Why play defense? After we fix the program, why don’t we increase Social Security benefits? Why not lower the age of retirement? With unemployment hovering around 10 percent, and some economists, like James Galbraith, arguing that at least some of those lost jobs are never to return, why not open up some jobs for the young ‘uns and put a dent in the number of Americans who are out of work? Maybe with more demand for workers, employers would see their way to raising wages a bit, bucking the long-term trend of stagnation that the majority of Americans have endured over the past 30 years. Think about it: if you enter the labor market at age 20, isn’t busting your ass for four decades long enough to merit a dignified retirement? We are a wealthy country -- we can afford it.
According to Bruce Bartlett, in an incredibly typical scare-piece in billionaire granny-basher Pete Peterson’s Fiscal Times, that’s not true. Social Security’s problems are immense. “The 2009 report of Social Security’s trustees,” Bartlett writes, “showed a long-term actuarial deficit in that program of $15 trillion.” That is an almost unimaginably large number, given that the entire annual output of the United States was only $14 trillion last year.
But what does it really mean? Well, it turns out that Bartlett’s not even referring to the dubious 75-year projection of the Social Security “gap.” His terrifyingly big figure actually represents the program’s “shortfall” stretching out to infinity. That’s right -- it’s the program’s “unfunded liability” if everything remains as projected forever, and assuming the earth isn’t destroyed by a moon-sized meteor at some point before forever arrives. (The geeks at the American Academy of Actuaries have suggested that the “infinite horizon” measure is complete nonsense.)
(More here.)
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