In today’s Boston Globe, Robert Kuttner nails the myth about “The Social Security Crisis”. It’s just that: a myth. There is no crisis. Key quote: “In June, the bipartisan Congressional Budget office used more realistic assumptions about economic growth. CBO puts the first shortfall year at 2052, not 2042, and it projects Social Security’s 75-year shortfall at only about four-10ths of one percent of gross domestic product. Currently, that’s about $40 billion a year, or one-fifth of the revenues that the Bush administration gave up in tax cuts for the wealthy. Simply restoring pre-Bush tax rates on the richest one percent of Americans could bring the Social Security system into balance indefinitely, without reducing promised payouts by one penny.”
And why do so many Democrats as well as Republicans use the language of crisis? Kuttner’s explanation is that “many well-meaning Democrats who defend the Social Security system want to be absolutely [certain] that its funding is rock solid. So [they] talk of its shortfall and offer different ways to make up the gap. Unfortunately, that tends to play into Republican hands.”
If Republicans are ideologically opposed to the idea of Social Security, that’s their right. But if the only way to argue for the position is to lie about the situation, that doesn’t say much for their case.