Sunday, February 27, 2005

Hm...where have I heard this before?

One of the biggest distortions in the Social Security debate is the President's dual claim that the Social Security system is in imminent danger and that private accounts are the way to fix it. First, it's true that on its current path the Social Security system will soon begin paying out more than it's taking in, but that doesn't mean it will "go bust" the day after tomorrow, as Bush would have us believe. In fact, it will be able to pay full benefits until 2042, and a large percentage of benefits until 2075. Secondly, as the White House has now grudgingly admitted, private accounts do nothing to improve the solvency of Social Security unless they are accompanied by benefit cuts.

However, this is all old news.

What I found more interesting was a Bush quote in an article in today's New York Times:

"Social Security 'will be bust in 10 years unless there are some changes,' Bush said, according to an account published the next day in The Midland Reporter-Telegram."

Sound familiar? Well this quote isn't from today, yesterday, the 2004 campaign or anytime in the recent past. It's from 1978! Bush said this when he was running (and losing) for Congress almost thirty years ago. And as anyone who was around in 1988 will tell you, the Social Security system was nowhere near "bust."

This from the guy who, in the 2000 campaign, laughed at those "people in Washington" who "think Social Security is some kind of federal program."

-Eric

2 Comments:

At February 27, 2005 9:14 PM, Blogger Gilbert Martinez said...

In the early 80s, Reagan set up a commission to look at the solvency of S.S. The end result of this commission--chaired by one Alan Greenspan--was an increase in the payroll tax to generate the trust fund we hear about so much these days.

Similar proposals have made by Peter Orszag at Brookings Institution. Check out some of the work being done at Brookings here.

 
At February 17, 2006 5:06 AM, Blogger 10 Best Home Based Business said...

Charming blog. Your site was off the chain and I
will return! When I get the time I look for blog like
this one.
Search for my new home based business opportunity blog, please!

 

Post a Comment

<< Home