Latest example of why Social Security system is fine
The economy grew by 3.8% this past quarter. What's that got to do with Social Security?
Well, the Social Secutirty trustees, in order for them to say Social Security will not be able to pay more than 70% of its benefits by 2042, assume the economy will consistently grow at an anemic rate of 1.6% every year consistently until 2042 (average of three growth rates on chart).
That rate (1.6%), by the way, is lower than nearly any single year over the past 75 years.
Why so glum? The only answer I can think of is that the Social Security trustees don't trust or even like the Social Security system very much. Kevin Drum recently conducted a useful survey of how the Trustees have had to continually push back the date of reckoning because of their consistently, unrealistically glum view of economic growth in the America.
What happens if we take another percentage, oh, say 2.5%, and plug that into the trustee's report--leaving everything else the same? Well, well, well. The Social Security system survives into the 22nd Century with no problems, leaving "the Baby Boomers" bubble (which is why we are now paying such high Soc. Sec. tax rates) long behind. End of problem--unless we simply oppose the program because they know it smells like socialism. Like these folks and these folks.
Where's the real problem? The tax cuts passed by Congress and signed into law by the C Plus Augustus continue to create massive annual deficits and long term debt. If anything can drag down the American system over time, the tax cuts, skewed to the top 1% to 5% of Americans, may prove to be the most significant cause of such dragging down. In the spirit of Karl Rove, I ask: Who are the traitors to America? The ones who would mire us in endless debt over time wtih no investment in roads, bridges, internal business development, etc. The ones who would continue to support Wal Mart predatory practices, including low wages for Americans, little or no health benefits, and continuing to push our manufacturing base to China through predatory pricing from manufacturers.
Again, I ask: Who are the traitors to America? The answer is clear: George Bush and the Republican leadership in Congress.