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View Diary: What's Happenin'? Ham & Egg Justice Week 12.9.12 (32 comments)

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  •  Who needs Peter Peterson when you have got (10+ / 0-)

    Peter Orszag in your own party?

    On Social Security, as I have previously argued, the Democrats, while they still control the White House and the Senate, should want to lock in the victory they have already won over the idea of keeping private accounts out of Social Security. Plus, as Peter Diamond and I have laid out, it’s possible to restore the program’s long-term solvency while also making it fairer -- including by having it reflect the growing gap in life expectancy by income and education. Finally, and perhaps most important, Social Security reform can be phased in gradually, thereby minimizing the damage to the labor market from too much austerity too soon.

    Difficult Reform
    I’m not pretending that Social Security reform is easy. It must, though, be compared with the alternatives. Progressive Social Security reform not only would be affirmatively desirable but also could partially displace other, more troubling proposals -- which would take effect too quickly, and thereby raise the unemployment rate, or be problematic on their own terms. It would be difficult, for instance, to make further cuts in discretionary spending, as it is already scheduled to reach unreasonably low levels as a share of the economy.

    The administration claims that it is committed to reforming Social Security -- just not right now. But why would reform be easier in, say, 2014, when nothing is forcing action, than it is today? (And if the problem is that Republicans are reluctant to vote for additional revenue as part of Social Security reform, how exactly does that change over the next year or two?)

    First you reinforce the idea that SS needs reform, then you keep using the word to cover what you really mean: CUTS.

    I remembered his name from Ron Suskind's book  "Confidence Men." He was around from the beginning of this administration.

    Peter Orszag is vice chairman of corporate and investment banking at Citigroup Inc. and a former director of the Office of Management and Budget in the Obama administration.

    ❧To thine ownself be true

    by Agathena on Sun Dec 09, 2012 at 07:24:42 AM PST

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