I figure that I owe it to everyone here to briefly be as clear as possible about what I mean in regards to Social Security:
Social Security is not an investment program. Social Security revenues fund current expenditures. That is welfare, not investment. Although the Social Security Trust Fund nominally purchases government bonds, it is not clear that these bonds have any economic meaning - any more than issuing a bond to yourself would have economic meaning. It is pretty disingenous for so many liberals to have suddenly decided that Social Security isn't really in crisis now that there is actually a Republican plan to fix Social Security. This smacks of the "Republican Homeless Phenomenon" in that the Main-Stream-Media seems to trot out more "evergreen" stories in the "Homeless Human Interest" categories when Republicans are in power. Plain and simple, Social Security is based upon the concept of current workers paying for current retirees. So long as retirees continue to live longer, medical advances and longer live spans boost medical costs, and the US birth rate decline - the numbers on Social Security will continue to not add up. With that being said, there is some indication that if measured gains in US productivity over the past 4-6 years or so are real - and are translated into increases in GDP - then the US fiscal outlook could be in a lot better shape than any of us imagine. This is not, though, the argument that Krugman and Denton are making. Social Security is running a "surplus" because of an increase in payroll taxes in the early 1980's. Anyhow who ever tells you that Republicans are out to screw the poor on behalf of the rich (like a certain Science Fiction author with fanatical opposition to Republicans) need only look at the list of Democrats who supported the above tax bill. If that still hasn't convinced you, just look at the list of Democrats who oppose means-testing Social Security benefits, and who support the current cut-off of Social Security Taxes at @$100-120,000 (I forget the exact numbet) in income. And then think about which Party is a) trying to change the status quo, b) wants to means-test Social Security benefgits, and c) has floated lifting that cap in a trial-baloon JDG - But I am sure that Dr. Brin will tell us that Democrats thought of Social Security Reform first.... ;-) _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
