Wednesday, May 11, 2005

No SS Cuts - Been Saying it All Along

Wanted: Responsible Demagoguery - New York Times
Honesty from the Maureen Dowd's slot - of course, Matt Miller is feeling in for her.
So farsighted Democrats who want to (1) win back power and (2) use that power to fix big problems should quit carping about Bush's evil 'cuts' and punish him instead with what I call Responsible Demagoguery: harsh politics that leaves sound policy intact.
Why do I say this? Start with this poorly understood fact: Under today's system of "wage indexed" benefits, every new cohort of retirees is guaranteed a higher level of real benefits than the previous generation. Workers retiring in 2025, for example, are scheduled to receive payments 20 percent higher in real terms than today's retirees. Today's teenagers are slated to get a 60 percent increase. When Democrats cry about "cuts," they mean trims from these higher levels.
A Democrat might ask: Why would we ever change this way of calculating benefits, other than from some Scroogelike desire to slow the rise in future benefits? Well, we probably wouldn't think about it if we weren't on the cusp of the biggest financial crunch in American history. But we are. And with the baby boomers' retirement looming, Democrats need to think beyond Social Security alone to think intelligently about achieving progressive goals.
Indeed, if you care about social justice and economic growth, the big policy question for the next generation is this: How do we square the needs of seniors with the needs of the rest of America, at levels of taxation that don't strangle the economy?

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