skews13
Diamond Member
- Mar 18, 2017
- 9,821
- 12,528
It’s one thing for Republicans to threaten Social Security. It’s another for our “liberal” media to aid and abet them by pushing the false narrative that Social Security has a “solvency crisis.”
The Myth of Social Security Insolvency
Economist Stephanie Kelton destroys this myth in her book, In The Deficit Myth, recently chosen by BookAuthoirity.org as No. 1 on a list of the Best Economic Theory Books of All Time:
So what would we do to provide for if and when Social Security benefits exceed the contributions?
What can be done
Congress can pass a law today providing that full Social Security benefits will be paid even if the Trust Fund is exhausted.
Wait! They can do that?
Not only can they, but they already do it for Medicare Parts B and D. Unlike the trust funds for Social Security and Medicare A and C, the Trust Fund for Parts B and D (“SMI”) has the authority to pay full benefits from general federal government funds. So the same Social Security and Medicare Trustees report containing scary predictions for Social Security and Medicare A and C states: “For SMI, the Trustees project that both Part B and Part D will remain adequately financed into the indefinite future because current law provides financing.” As Kelton writes, “That keeps SMI financially secure to infinity and beyond!”
All Congress would have to do is apply the provisions of SMI to the other Social Security and Medicare Trust Funds and every one of MacGuineas statements falls.
Would somebody please think about the bankers.
The Myth of Social Security Insolvency
Economist Stephanie Kelton destroys this myth in her book, In The Deficit Myth, recently chosen by BookAuthoirity.org as No. 1 on a list of the Best Economic Theory Books of All Time:
FDR designed Social Security with FICA contributions and trust funds to gain popular support of the programs. People would “see” the funds were there to pay the benefits. But now, people “see” or are being told to “see” the funds are not there.MYTH #6: “Entitlement” programs like Social Security and Medicare are financially unsustainable. We can’t afford them anymore.
REALITY: As long as the federal government commits to making the payments, it can always afford to support these programs. What matters is our economy’s long-run capacity to produce the real goods and services people will need.
Kelton, Stephanie. The Deficit Myth (p. 157). PublicAffairs. Kindle Edition
So what would we do to provide for if and when Social Security benefits exceed the contributions?
What can be done
Congress can pass a law today providing that full Social Security benefits will be paid even if the Trust Fund is exhausted.
Wait! They can do that?
Not only can they, but they already do it for Medicare Parts B and D. Unlike the trust funds for Social Security and Medicare A and C, the Trust Fund for Parts B and D (“SMI”) has the authority to pay full benefits from general federal government funds. So the same Social Security and Medicare Trustees report containing scary predictions for Social Security and Medicare A and C states: “For SMI, the Trustees project that both Part B and Part D will remain adequately financed into the indefinite future because current law provides financing.” As Kelton writes, “That keeps SMI financially secure to infinity and beyond!”
All Congress would have to do is apply the provisions of SMI to the other Social Security and Medicare Trust Funds and every one of MacGuineas statements falls.
- We can afford to pay for all benefits to current and future retirees even if contributions lag benefits.
- There is no reason to cut benefits, now or in the future, or even to raise taxes, now or in the future.
- Not even to raise the cap on contributions (which would violate President Biden’s pledge not to increase taxes on income under $400K).
- There is no reason to pit generations against each other to triage government funds.
- There is no reason to raise the retirement age.
There is no Social Security Solvency Crisis. Why is MSNBC telling us otherwise?
It’s one thing for Republicans to threaten Social Security. It’s another for our “liberal” media to aid and abet them by pushing the false narrative that Social Security has a “solvency crisis.” Last Sunday, Maya MacGuineas of the Committee for a...
www.dailykos.com
Would somebody please think about the bankers.