Tuesday, February 01, 2005

Doin' the math... again

Paul Krugman's columnm today basically hit the nail on the head. In order for privatizers to be right about the rate of return on investments in private accounts, the economy would grow much more than the conservative projections in the Trustees report of Social Security. If we apply the same economic assumptions to both, then there is no shortfall in Social Security and it is in the black indefinitely. I gotta make the point again, though, that even if we get super high rates of returns on privae accounts, it does absolutely nothing to help the solvency of the Social Security system. It will siphon money away from the system, exacerbating the problem as a matter of fact. So we'll pay $10 trillion over then next 60 years to get the private accounts, make huge cuts in benefits to the system, then spend trillions to bail out the system because of the money that was diverted into the private accounts. All this because there is a $3.7 trillion shortfall in the system over the next 75 years that would totally be covered by just rolling back the Bush tax cuts.


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