In a new paper and podcast I’ve tried to correct some of the misinformation that critics of Social Security have been spreading about the program.
BEYOND THE NUMBERS
Bill Galston of the Brookings Institution and Maya MacGuineas of the New America Foundation offered a plan last week to reduce federal deficits and push down debt held by the public to 60 percent of gross domestic product by 2020. The plan explicitly recognizes that it would be unrealistic to hold federal revenues and outlays to the averages of recent decades, a topic on which we’ve recently written. We commend Galston and MacGuineas for proposing reasonably specific tax increases and spending cuts rather than relying largely on mechanical formulas that avoid making the hard choices.
The Atlantic’s Megan McArdle has written another post about our comparison over the next 75 years of the Social Security shortfall and the cost of the Bush-era tax cuts for high-income taxpayers. The gist of Ms. McArdle’s argument seems to be that we’re not computing the present value of these two policies in the same way. That’s simply incorrect.
Kathy Ruffing and I recently noted that the cost of extending the Bush-era tax cuts for upper-income taxpayers roughly equals the amount of Social Security’s 75-year shortfall. Today at The Atlantic, Megan McArdle questions both our estimate and our analysis. Here’s why our comparison makes sense.
To correct some recent stories suggesting that Social Security faces deep and immediate financial problems, a new report from our colleague Kathy Ruffing outlines the program’s outlook over the short and long term. Here’s the summary:
Rep. Paul Ryan and his budget plan are getting a lot of respectful attention in the press. (See here and here.) New York Times columnist Matt Bai suggests Ryan’s plan might represent “the starting point in what could be a serious negotiation about entitlements and spending.” But a careful look at the plan shows it to be a radical blueprint to shift massive resources from the broad majority of Americans to the very wealthy, while leaving the budget on an unsustainable course for decades.
Today’s the final day of our countdown of the top ten facts about Social Security in honor of its 75th anniversary this weekend. We released a report today summarizing all ten.
Continuing our countdown of the top ten facts about Social Security in honor of its 75th anniversary this weekend, here are today’s two: