From the
Huffington Post - by Saul Friedman - I have not yet celebrated the Diamond Jubilee -- the 75th anniversary -- last week of the adoption of Social Security. That's because I suspect President Obama may consider agreeing to a cut in benefits for future retirees, by raising the retirement age, which would be disastrous for them and for his presidency. Once he was against it, but now, as you'll see, we cannot be sure. In his White House proclamation, Obama recalled that in the midst of the Great Depression, 'the Social Security Act brought hope to some of our most vulnerable citizens, giving elderly Americans income security and bringing us closer to President Roosevelt's vision of a nation free from want or fear."He added, "My administration is committed to strengthening...and protecting Social Security as a reliable income source for seniors, workers who develop disabilities and dependents...Let us ensure we continue to preserve this program's original purpose in the 21st century." He didn't say how, but presidential proclamations are usually empty of substance. And as the Associated Press pointed out in reporting on the president's speech, "most Republicans, in fact, are wary of touching that idea because Social Security is virtually sacrosanct to voters, particularly seniors." Indeed, the most prominent Republican favoring privatization of Social Security and Medicare, Rep. Paul Ryan of Wisconsin, has gotten little support from his Republican colleagues.What was missing from Obama's address was a single proposal to solve Social Security's long term shortfall, which the program's trustees estimate will come in 2037, when the program's $2.6 trillion trust fund, which is held in treasury bonds, may run out. According to the trustees, a one percent raise each in the payroll taxes split between employee and employer enacted now, would end the problem. Even now, the trust fund is continuing to grow with interest payments of more than $100 billion a year.
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Looks Like Obama Is Considering Cuts in Social Security Benefits
From the Huffington Post - by Saul Friedman - I have not yet celebrated the Diamond Jubilee -- the 75th anniversary -- last week of the adoption of Social Security. That's because I suspect President Obama may consider agreeing to a cut in benefits for future retirees, by raising the retirement age, which would be disastrous for them and for his presidency. Once he was against it, but now, as you'll see, we cannot be sure. In his White House proclamation, Obama recalled that in the midst of the Great Depression, 'the Social Security Act brought hope to some of our most vulnerable citizens, giving elderly Americans income security and bringing us closer to President Roosevelt's vision of a nation free from want or fear."He added, "My administration is committed to strengthening...and protecting Social Security as a reliable income source for seniors, workers who develop disabilities and dependents...Let us ensure we continue to preserve this program's original purpose in the 21st century." He didn't say how, but presidential proclamations are usually empty of substance. And as the Associated Press pointed out in reporting on the president's speech, "most Republicans, in fact, are wary of touching that idea because Social Security is virtually sacrosanct to voters, particularly seniors." Indeed, the most prominent Republican favoring privatization of Social Security and Medicare, Rep. Paul Ryan of Wisconsin, has gotten little support from his Republican colleagues.What was missing from Obama's address was a single proposal to solve Social Security's long term shortfall, which the program's trustees estimate will come in 2037, when the program's $2.6 trillion trust fund, which is held in treasury bonds, may run out. According to the trustees, a one percent raise each in the payroll taxes split between employee and employer enacted now, would end the problem. Even now, the trust fund is continuing to grow with interest payments of more than $100 billion a year. Read more
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