Social Security Choice: Is There a Social Security 'Crisis'?
Is there a Social Security "crisis"? Take this simple test. (Answers given at end.)
1. Astronomers discover that a small asteroid is on a course that will cause it to smash into the earth in 2018, killing millions of people. This is:
A. A crisis.
B. A problem.
C. George Bush's fault because of his "tax cuts for the rich".
2. Astronomers discover that a huge asteroid is on a course that will cause it to smash into the earth in 2042, killing everything including the cockroaches. This is:
A. A crisis.
B. A problem.
C. George Bush's fault because of his "tax cuts for the rich".
Our present situation regarding Social Security is analogous to the challenge posed by an asteroid on a collision course with earth. If we acted immediately, while the asteroid was still far out in space, a small nudge would be enough to cause it to miss our world. The longer we waited, the more force would be required to produce the needed alteration in trajectory. If we waited too long, the situation would become impossible.
The same principle applies to Social Security. The reason to act now is because we have attractive options available (including moving to a system including Personal Accounts) that won't have nearly the same impact if we wait. This having been said, the most important thing that we must do - and do now - to ensure the solvency of Social Security (and Medicare) is to increase our nation's rate of economic growth. I will explain why in my next post.
Answer Key:
If you answered "A" to the above questions, you are probably a normal, responsible American who believes that "an ounce of prevention is worth a pound of cure."
If you answered "B” to the above questions, you are probably Alfred E. Newman, maintaining your long-standing philosophy of “What, me worry?”
If you answered “C” to the above questions, you are probably Paul Krugman.
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