Social Security Revisited

Paul Krugman first wrote this article saying that Social Security was not one of the pressing problems. Greg Mankiw rebuts Paul claim, saying that all fears came from dispassionate analysis by some of the best policy economists. Brad Delong and Mark Thoma both criticize the attitude expressed by Greg Mankiw, but the best rebuttal must be given to Dean Baker, who attempts to deflate the hysteria. The whole Issue might be simplified by first stating that Conservative desire is concentrated in minimizing all potential taxation, refusal to repay the Social Security Trust Fund by venue of discarding Social Security Benefits, and forcing a dismantlement of the basic Social Security system.

Economists would do far better to simply answer certain basic Questions about Social Security. I will list a number of Questions, whose Answers could aid the Argument:

What percentage of Benefits would have to be foregone, to maintain the current rate of Taxation without the Social Security Fund falling into deficit?

What percentage of Tax increase must be mandated to maintain the level of Social Security Benefits without the Fund falling into deficit? What would be the added actual taxes per $100,000 of Income per year?

How much longer could the Fund remain in surplus, if Medicare was broken off from Social Security, and Medicare funded by a proper Health Care law?

What increase of Fund security would come from cutting the Federal ability to spend the surplus from the Social Security Fund, and dictating that the Federal Reserve first lend Social Security receipts in intra-bank loans, before using their own reserves?

How much longer could the Social Security Fund surplus survive, if the system was switched to a uniform monthly Benefit?

Dozens of Questions could be posed, but these above could provide sufficient detailed information on which to base a policy decision. Study of these Questions could even suggest Means to better Social Security performance. Readers have to understand Politicians, Economists, and Ideologues hate to be pinned down for actual specific Answers, hiding both their Sins and foibles within confusion. lgl