The Babe Theory Of Political Movements.
Mar. 21, 2005 11:50 AM
Iran's Sham Election In Houston.
June 20, 2005 5:36 AM
Yes, Kanye, Bush Does Care.
Oct. 31, 2005 12:41 AM
Health Care vs. Wealth Care.
Nov. 23, 2005 3:28 PM
Americans Voting With Their Feet.
Nov. 30, 2005 1:33 PM
Idea Majorities Matter.
May 12, 2006 6:15 PM
Twilight Zone Economics.
Oct. 17, 2006 12:30 AM
The "Shrinking" Middle Class.
Dec. 13, 2006 1:01 PM
From Ashes, GOP Opportunities.
Dec. 18, 2006 6:37 PM
Battle Between Entitlements & Pork.
Dec. 21, 2006 12:31 PM
Let Economic Freedom Reign.
Dec. 22, 2006 10:22 PM
Biggest Health Care Moment In Decades.
July 25, 2007 4:32 PM
Unions Antithetical to Liberty.
May 28, 2008 11:12 PM
Right To Work States Rock.
June 9, 2008 12:25 PM
Social Security Reform Thursday.
March 13, 2008
Caption Contest: Enter Today!
Due: July 29, 2008
The Carnival Of Classiness.
Mar. 14, 2006
Quotational Therapy: Obama.
Apr. 4, 2008
Mainstream Melee: Wolfowitz.
May 19, 2007
Pundit Roundtable: Leaks.
July 9, 2006
A WILLisms.com(ic), by Ken McCracken
July 14, 2006
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Social Security Reform Thursday: Week Sixty-Seven -- Two Percent Is Bigger Than It Sounds.
Thursdays are good days for reform, because they fall between Wednesdays and Fridays.
That's why WILLisms.com offers a chart or graph, every Thursday or so, pertinent to Social Security reform.
This week's topic:
A Refresher On Key Dates.
Incoming Senate Finance Chairman Max Baucus, that pillar of Montana moderation, that red state Democrat, was recently asked about when Social Security Reform would be on the agenda.
"Oh, I don't know. The trust fund doesn't reach zero until 2042."
Max Baucus, like so many self-proclaimed moderates in politics today, is a coward. He was once considered a potential target for defection from the steadfast Democrat strategy of "just say no to Bush on Social Security Reform" in 2005. Now, he just wants to defer finding a solution until he's not around anymore. Moreover, he doesn't even have his numbers right.
From the Social Security Trustees:
The annual cost of Social Security benefits represents 4.2 percent of gross domestic product (GDP) in 2005 and is projected to rise to 6.2 percent of GDP in 2030, and then slightly to 6.3 percent of GDP in 2080. The projected 75-year actuarial deficit in the combined Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds is 2.02 percent of taxable payroll, up from 1.92 percent in last year's report. This increase is due primarily to advancing the projection period, the availability of recent data that led to revisions in key assumptions, and to changes in methods. Although the program passes our short-range test of financial adequacy, it continues to fail our long-range test of close actuarial balance by a wide margin. Projected OASDI tax income will begin to fall short of outlays in 2017, and will be sufficient to finance only 74 percent of scheduled annual benefits in 2040, when the combined OASDI trust fund is projected to be exhausted.
2042, in other words, should have been 2040. Sure, that's quibbling, but the guy in charge of fashioning Social Security policy changes ought to at least have his dates correct.
Why not use 2017, when Social Security outlays begin to outpace Social Security tax revenues. Or why not use the date that outlays begin closing the gap on tax revenues (later this decade).
Even more, why ignore the fact that Social Security now consumes 4.2% of the national economy, and in just six presidential elections, that number will be 6.2%:
That's a serious problem.
We can seriously do better.
It's been time for reform. The American people demand it.
Previous Reform Thursday graphics can be seen here:
-Week One (Costs Exceed Revenues).
Posted by Will Franklin · 11 January 2007 05:42 PM
I am afraid that the problem is that the American people DON'T demand it.
Posted by: LAXPAT at January 12, 2007 09:03 AM
LAXPAT... I think you are right to a degree. What's really bad is that our government has the authority and power to take out funds from hard working tax paying citizens that could be investing those same funds in their own retirement plans. AND they could actually be making a very cushy nest egg. Instead SS is designed to hold us all hostage in our golden years. People can't pay for their needs because they have been forced to pay into a government retirement plan that gives absolutely NO Security. Social Insecurity is what it should be called. AND our elected officials could care less!
Posted by: zsa zsa at January 12, 2007 10:28 AM
Basically, Once big government has it's hands on something it is very hard to undo...
Posted by: zsa zsa at January 12, 2007 10:31 AM