Subject: RE: why risk Social Security benefits to solve a phony "crisis"?
Granted there is no way to predict the future 100%. But, why should we stick with a pay-as-you-go system that we know, regardless of future projections, is going to be unable to pay 100% of benefits by 2034 (perhaps sooner)? That's a guarentee, but it's not a very comforting one.
Reformers are not "giving up the guarentee for a gamble," but, rather giving up an outdated, dilapidated system for the guarentee of a secure safety net for all workers, a guarenteed wealth accumulation tool that will help to break tax dependency cycles, and a chance to own a piece of the American dream. Let's not forget that. Let's not forget that the only guarentee is the bankruptcy of Social Security if we don't act responsibly, and soon.
Carolyn Cox is right when she says that we need to move this year from a pay-as-you-go system to a funded system. A funded system including personal retirement accounts, guarenteeing the social safety net, and giving low-income earners a chance for significant savings. Does the current system offer any of that?
What is guarenteed is that if we wait too long, the safety net will be so ragged that far too many retirees will slip through, even as payroll taxes will hiked up and up and up to prop up a facade of social insurance.
I've said it before and I'll keep saying it. Time is money. Literally.
Rob Crowther, Regional Director Economic Security 2000
