Social Security: Framing the Debate
Even though it's painful to watch, Robert Kuttner's faceoff with former US Comptroller General David Walker and former CEO of the Peter G. Peterson Foundation is instructive as far as seeing how the attack on Social Security is being framed.
Republicans will tell everyone Social Security is completely deficient, that it's running a 'deficit'. In fact, that isn't the case. What is happening right now has been expected for decades and was planned for in the 1980, when Social Security reforms were passed under Ronald Reagan. Social Security has the largest surplus of any government program and is projected to fully fund 100% of all benefits due now and in the future until 2037. But Republicans are seizing on a known fact to demonize it.
Here's a snippet from the transcript:
KUTTNER: Let's separate out social security. Social security is going to be in surplus for the next 27 years. Social security has nothing to do with the budget deficit.
WALKER: That is just false. That is false. Social security is running a cash flow deficit. It is adding to the deficit. It will be in a permanent cash flow deficit starting in 2015. That is just false.
KUTTNER: I'm sorry. It is not false.
WALKER: I'm a trustee. I know what the numbers are.
KUTTNER: So do I.
WALKER: Okay.
KUTTNER: This commission was charged with -- the report says social security has nothing to do with the current deficit and the cuts are not going to take effect for decades. I don't know why social security is part of this at all except ideological opposition to the whole idea.
If Social Security were a private pension plan, it would be funded to a surplus in the early years with the goal of leveling out costs in later years. This gives a funding curve that's fairly level, much like a loan amortization schedule. In the case of pensions, part of the payment goes to the present, and part to the future. It's not a private pension plan, and is funded a bit differently, but the underlying principle is the same.
Kuttner is right. Social Security is not part of the problem. Medicare is, but the Patient Protection and Affordable Care Act begins to deal with the Medicare problem. The only reason to attack Social Security is ideological -- to kill it altogether.

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