Sunday, January 16, 2005

Bush Lies (I Know, Like What Else Is New?)

A good article on the Social Security "crisis" (cough, "bullshit") from Time Canada:
At another appearance intended to promote federal standards for testing high school students, Bush went off script to warn a group of teenagers, “The system will be bankrupt by the year 2040.”

That sounds pretty scary—except that it’s not true. What will actually happen in 2018, according to the Social Security trustees who oversee the program, is that the money paid out in benefits will begin to exceed the amount collected in taxes. And since Social Security will run a surplus until then (and has been running one for some time), it has billions available that it can tap to fill the gap. Even under conservative estimates, the system as it stands will have enough money to pay all its promised benefits until 2042 and most of its obligations for decades after.

What’s more, even if you take the President at his word—that a crisis and bankruptcy are fast approaching—the introduction of private accounts does nothing to slow that process. On the contrary, it makes things worse, by diverting payroll taxes from current retiree benefits and bringing the end of surpluses that much closer. Given all that, what is the President after?


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February 16, 2006 at 5:55 PM  

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