A Well-Tailored Safety Net: The Only Fair and Sensible Way by Jed Graham

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  • January 31, 2017
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By Jed Graham

This interesting e-book introduces the 1st Social defense reform notion adapted to satisfy the nation's financial demanding situations and take care of an getting older population.

• greater than 50 charts and tables element the talk over Social defense reform, together with the money advantages retirees could get below a number of proposals

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Extra resources for A Well-Tailored Safety Net: The Only Fair and Sensible Way to Save Social Security

Example text

85% $261 billion Source: Author’s calculations based on Social Security Administration’s cost, revenue, economic and interest rate projections in The 2009 OASDI Trustees Report. employer, the net result would be about the same, since the employer could be expected to compensate for the heavier tax burden by paying less generous wages. The question that must be answered is who will bear the sacrifice. Almost nobody would suggest that it is fair to cut benefits for people who have already retired.

7 Quite a trick. 2 trillion by 2036 on top of the trillions in borrowing that would be required to pay all promised Social Security benefits. Would the so-called ‘‘conservative’’ brain trusts behind this plan still support it if the government savings aren’t obtainable? Apparently, they didn’t see that as a problem. ‘‘Another proposed option is to fund the entire transition [to personal accounts] through long-term borrowing,’’ Stephen Moore and Peter Ferrara, who is credited with developing the Ryan-Sununu approach, wrote in a 2005 paper.

6 Of course, Republicans had little success reining in government spending when they controlled the White House and both houses of Congress, so there’s little reason to think they’ll be able to shrink the size of government with Democrats calling the shots and looking to invest more resources in education, health care and other areas. And now, in the current era of trillion-dollar deficits, it’s much harder to make an argument that all budget savings should be offset with new government borrowing to establish personal investment accounts within Social Security.

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