DIYbanter - View Single Post

In article ,
says...
Anyone who doesn't think there is a social security problem is
delusional. Whoever takes the problem on is going to be in for
a ****-storm; the Dems just prefer to let someone else do what has
to be done.

Now THAT's the Dave I love to disagree with :-).

Yes, SS has a problem. No, SS is NOT in a crisis, as Bush would have us
believe.

1. His estimates are based on a peeimistic forecast of grwoth at half
the rate it has averaged for 50 years or so.

2. Private accounts will do nothing to solve the problem - Bush glosses
over the fact that his solution requires reducing benefits. That would
work without the private accounts.

3. With the private accounts, the SS "crisis" is replaced by massive
borrowing to finance the transition - but that's OK, whats another
trillion or so on the debt.

4. The "crisis", if any, is more properly called a "bubble". By the
time it occurs, the baby boomers will start dying off and the ration of
retirees to workers will improve again - although how much is anyones
bet.

5. Removing the limit on SS taxable earnings and slightly increasing
the rate at which retimement age is slated to rise would, if not
eliminate any fund shortage, at least push it considerably further into
the future.

And it seems nobody knows (or will say) what'll happen to the employers
share of the taxes employees take out for the private accounts. Wanna'
bet the companies would get to keep them?

--
Homo sapiens is a goal, not a description