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View Diary: "Social Security Won't Be There" - The GOP's Desperate Big Lie (63 comments)

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  •  TnR Very nice diary. (3+ / 0-)
    Recommended by:
    bernardpliers, erratic, splashy

    Hope youre saving the good one for March 25th-29th.


    ...... Social Security blogathon March 25th thru March 29th. #HandsOffmySS FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

    by Roger Fox on Fri Mar 01, 2013 at 07:36:43 PM PST

    •  I hear you, but don't understand (2+ / 0-)
      Recommended by:
      Roger Fox, GayHillbilly

      why we're trapped in this Overton Window. Every time someone fearmongers about SS, removing the cap should be the default response.

      •  Subconsious says SS will go broke (1+ / 0-)
        Recommended by:

        Mouth says "Remove the cap".


        ...... Social Security blogathon March 25th thru March 29th. #HandsOffmySS FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

        by Roger Fox on Fri Mar 01, 2013 at 07:47:09 PM PST

        [ Parent ]

      •  apologies, this was supposed to be a reply (0+ / 0-)

        to your reply to my comment.

      •  No, phased in increases in FICA should be. (1+ / 0-)
        Recommended by:
        Roger Fox

        Historically FICA rates have been a tradeoff against Real Wage gains. That is rates have increased steadily over time but the bite from the paycheck has been in real basket of goods terms a fraction of the increase in wages.

        The 1983 increase was phased in over a ten year period. And despite the legend that the Greenspan Commission thought they had prefunded Boomer Retirement in doing so, the ones that had an actual grasp of the numbers including lead Dem negotiator Bob Ball and Moynihan (who BTW was kind of terrible on SS, but knew his numbers) understood that fully funding Social Security under Intermediate Cost assumptions would require a new series of phased in increases right around 2012. And they were right.

        On the other hand per Dean Baker (who has been no 1 on the SS beat since the 1999 publication of Phony Crisis) the amount of FICA increases needed to fully fund SS without changing the cap formula would amount to around 5% of the projected increase in Real Wage under IC assumptions. And as he notes (as does Roger) that assumes the really crappy slowdown in Real Wage as a percentage of productivity over the last thirty years (a big part of income inequality). Simply assume Real Wage shares of productivity typical of the 50s to 70s and tada!! and bingo!! you get Low Cost outcomes as shown in Roger's extracts from the SS Report Tables.

        To repeat. Even under crappy wage assumptions workers can deliver 100% of the current scheduled benefit to themselves by devoting 1 out of every 20 dollars in REAL increase in take home pay (that is after inflation real basket of goods). Or they can cut that needed contribution by demanding that Real Wage get back to the 1.5% rate that it more historically was rather than the 1.0% assumed under Intermediate Cost.

        Phased in FICA of 1 out of every 20 real goods buying dollars OR more jobs at better pay and Social Security self-funds. Throw in a cap increase and you can either cut down on that 1 out of 20 ratio OR bolster benefits for the bottom 30% or so. Or mix and match in all kinds of ways. None of which require any cuts in benefits or increases in retirement age. That is just the Right enforcing their policy preferences on a mostly faked 'Crisis'.

        A nice start is the 2010 CBO Report Social Security Policy Options which scores 30 different such. Or you can just check out the main table in this dKos post by some dude. - SocSec.Defender at - founder DK Social Security Defenders group - (hmm is there a theme emerging here?)

        by Bruce Webb on Sat Mar 02, 2013 at 11:08:45 AM PST

        [ Parent ]

    •  I'll Probably Repost This (2+ / 0-)
      Recommended by:
      Roger Fox, erratic

      Incorporating whatever feedback I get

      There’s always free cheddar in a mousetrap, baby

      by bernardpliers on Fri Mar 01, 2013 at 07:55:11 PM PST

      [ Parent ]

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