7.12.04

The Social Security "crisis"...

Times economic columnist Paul Krugman weighs into the current debate about privatizing social security with this piece. He does a good job of demonstrating that there is no impending crisis in social security funding, something the shrill voice of the privatizers have been claiming. People forget what social security was designed to do, provide a social safety net for those people who would otherwise starve. It was NOT designed to be your sole source of income during retirement. Although I agree with Krugman's economics, I don't agree with his solution to issues down the road. If we raise the age at which the benefits begin and means test the program, thus returning it to its original state as a safety net, we will be able to avoid any future catastrophe. This solution would also have the effect of reducing the overall cost of the program and should allow for a reduction of the payroll tax. This savings could then be used by each individual to save for their own retirement. Contrast my differed gratification approach with W's barrow-2Trillion-up-front "privatizing" approach, and it's easy to see which plan will be better in the long run. Unfortunately, as we all know, politics is all about what have you done for me now, not what will you do for me in 30 or 40 years...

0 Comments:

Post a Comment

<< Home