Friday, June 17, 2016

About that Social Security

Social Security has been running a deficit since 2010, and in 2034, its “trust fund”—more or less just a tally of previous surpluses—will run out. Left and right could not disagree more about how to handle the situation.
Democrats, up to and including Hillary Clinton and Barack Obama, would like to expand the program, necessitating tax hikes above and beyond what would be needed merely to sustain it. And conservative intellectuals, whose thinking is captured in a new report from the American Enterprise Institute, would like to gut the program and replace it with a flat benefit that does nothing more than ensure seniors don’t live in poverty. That’s something the current program doesn’t achieve, so low-income seniors would see bigger checks—but on balance, this would slash benefits so dramatically that the program would eventually run a surplus, allowing tax cuts.

One would think that social security would be enough to never trust government to do anything important if such a thing could be done any other way.  We'd been tinkering with what problems government can solve for a 100 years - I can see the answer clearly.  Almost none.

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