Barro: Don't Cut Social Security, Expand It

Mar 9, 2013 Full story: www.bloomberg.com 12

With everyone in Washington experiencing sea-bass-induced euphoria, we're talking again about a "grand bargain" to replace the sequestration and shrink the federal budget deficit. And that means were talking about using the chained consumer-price index, a lower and more accurate inflation measure, to modestly raise taxes and cut Social Security benefits over time.

Back in December, I wrote that applying chained CPI to Social Security is the wrong solution to our budget problems: Its just a way of dressing up a cut to retirement benefits at a time when retirement insecurity is rising. Despite its problems, Social Security is the best-functioning component of the U.S.'s retirement-saving system. Instead of cutting, the federal government should be expanding its role in retirement saving.

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“Headed toward the cliff”

Since: Nov 07

Tawas City, Michigan

#1 Mar 9, 2013
Repay the $2.5 trillion stolen from the trust fund and remove the cap on taxable income and social security is solvent for the next 70 years.
idiots united

Saint Paul, MN

#2 Mar 9, 2013
Social security? I have enough to pay for real estate taxes like a revolving turd on my shoulder and my house is not even that good and needs repair and maintenance. I know it's useless to whine so I live with what I got.

“It's a Brand New Day”

Since: Feb 06

New Rochelle

#3 Mar 9, 2013
WeTheSheeple wrote:
Repay the $2.5 trillion stolen from the trust fund and remove the cap on taxable income and social security is solvent for the next 70 years.
The first should, but cannot be done; and the second must be done.

“Headed toward the cliff”

Since: Nov 07

Tawas City, Michigan

#4 Mar 9, 2013
Mr_Bill wrote:
<quoted text>
The first should, but cannot be done; and the second must be done.
Actually the first HAS to be done by law. Congress is obligated to repay every penny of that $2.5 trillion. That's why they're trying to change the law now.

We as a society must demand that money is repaid by continuing to put pressure on Congress.

We ALL benefited from the articially lower tax rates as a result of spending that stolen money, so we ALL have an obligation to help repay it, including current social security recipients.
Bob Burns

Kunming, China

#5 Mar 9, 2013
Unless the debt/deficit is substantually reduced/eliminated, by A)taxing everybody to poverty or exile, or B)cutting the holy shit out of every level of govt, there is no hope of anybody getting anything, no matter how much you want it, or how many "laws" are passed
idiots united

Saint Paul, MN

#6 Mar 9, 2013
It won't be really social security anymore if they keep up with the inflationary money printing it's just going to be a change on the pocket.

“It's a Brand New Day”

Since: Feb 06

New Rochelle

#7 Mar 9, 2013
Bob Burns wrote:
Unless the debt/deficit is substantually reduced/eliminated, by A)taxing everybody to poverty or exile, or B)cutting the holy shit out of every level of govt, there is no hope of anybody getting anything, no matter how much you want it, or how many "laws" are passed
wrong.

“Marble Man”

Since: Jul 11

Dallas, GA

#8 Mar 10, 2013
Lower the retirement age.
QUITTNER

Toronto, Canada

#9 Mar 10, 2013
1:48 pm, Sunday, March 10, 2013:
RE: Barro: Don't Cut Social Security, Expand It
..... As I see it, all welfare handouts, of any name, should be increased at the same rate as the unchained cost of living index increases.
..... Actually there is a conflict of interests! I think that the politicians should NOT be preparing budgets - academics should do that in an impartial, non-political manner, with politicians then only handing out budgeted money in their own area. Given that all politicians want to retain their own jobs, and that it is likely that if they vote for increasing taxes they would be replaced at the next election, there is a conflict of interest if politicians prepare the budgets.
..... It's much too late now, but I would have insisted on total costs of all levels of governments to be paid in full as soon as possible, without having to go into debt at all!
..... The retirement ages should be different for male and females and be increased at the same rate as the life expectancy is increased, so as to keep the difference nearly constant over many years.

“It's a Brand New Day”

Since: Feb 06

New Rochelle

#10 Mar 10, 2013
QUITTNER wrote:
1:48 pm, Sunday, March 10, 2013:
RE: Barro: Don't Cut Social Security, Expand It
..... As I see it, all welfare handouts, of any name, should be increased at the same rate as the unchained cost of living index increases.
..... Actually there is a conflict of interests! I think that the politicians should NOT be preparing budgets - academics should do that in an impartial, non-political manner, with politicians then only handing out budgeted money in their own area. Given that all politicians want to retain their own jobs, and that it is likely that if they vote for increasing taxes they would be replaced at the next election, there is a conflict of interest if politicians prepare the budgets.
..... It's much too late now, but I would have insisted on total costs of all levels of governments to be paid in full as soon as possible, without having to go into debt at all!
..... The retirement ages should be different for male and females and be increased at the same rate as the life expectancy is increased, so as to keep the difference nearly constant over many years.
An interesting, but utopian view.

However, please remember, not everyone can survive increasing the retirement age. some JOBS ARE PHYSICALLY PUNISHING, and people just cannot stand up to the demands over a certain age. Other jobs, office work and sales, might see an extension of a few years.
QUITTNER

Toronto, Canada

#11 Mar 10, 2013
2:57 pm, Sunday, March 10, 2013:
RE: Barro: Don't Cut Social Security, Expand It
..... Mr. Bill, If anyone cannot earn enough income owing to some health problems, then the compulsory health insurance should cover whatever costs are involved, with, of course, insurance premiums being high enough and deducted from all paychecks.
Bob Burns

Kunming, China

#12 Mar 10, 2013
Mr_Bill wrote:
<quoted text>wrong.
No money, no honey. "If wishes were horses, beggers would ride"

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