Social Security faces rocky political road

WASHINGTON – Beyond the thick curtain of finger-wagging last week over huge deficits and an unsustainable debt, a familiar battle resurfaced over the future of Social Security.

“For those under 55, we have to start a transition to a new system that will save America from bankruptcy and a lower standard of living,” Rep. Jeb Hensarling told Hardball host Chris Matthews on Monday. “Part of the social contract is going to have to be re-engineered.”

To privatize or not to privatize, that is the question.

The Social Security system is sagging under its own weight. When it runs out of money, around 2037, that will trigger drastic, automatic benefit cuts of 24 percent – painful, but so is every solution that might be adopted now, from higher payroll taxes to delaying the retirement age.

So the lack of consensus is understandable, if maddening.

One idea Republicans have kicked around for years is to let younger workers shift some Social Security taxes into personal investment accounts. President George W. Bush pushed it in 2005. Let workers younger than 55 divert up to two-thirds of their payroll taxes and buy stocks and bonds.

The idea went nowhere, and the stock market crash later in Bush’s term left critics smug.

via Social Security faces rocky political road | News for Dallas, Texas | Dallas Morning News | Headline | Columnist Todd J. Gillman | Dallas Morning News.

Advertisements

Leave a comment

Filed under Economic Collapse, Economics, Government Spending, Governmental Agencies, Social Security, Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s