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  •  1 GOP guillotine cut or 1000 by Dem switchblade (3+ / 0-)
    Recommended by:
    wsexson, o the umanity, JesseCW

    Either way, Social Security is dead and Medicare is next.
    DLC | Talking Points | November 1, 1998

    DLC Talking Points: Social Security Reform

    As the country prepares to debate how to preserve Social Security for the 21st century, here are several key New Democratic principles for framing the discussion:

         This is no time for a "hands off" approach to Social Security.

    The system will face insolvency once the baby boom generation begins to retire. If we wait to reform Social Security, the gap between revenues and benefits will grow and options for making the system fair and adequate will shrink. The ratio of workers paying into the system to retirees drawing benefits from it is shrinking rapidly. Given this, "saving Social Security" without reforming it would mean diverting an ever-higher share of national wealth to keep today's benefit structure intact. If we fail to restrain Social Security expenditures, we risk starving other key public investments and stifling the economic growth that makes generous benefits possible.

         Conservative total-privatization schemes are too risky and ignore Social Security's social insurance function.

    While limited privatization may help encourage personal savings and increase the pool of pension revenues, total privatization would put the system's stability at risk. In addition, Social Security provides social insurance against such catastrophes as disability or the death of a spouse. Converting the system entirely into privately controlled savings accounts would gut this social insurance function, which if anything should be strengthened.

         Ruling out personal accounts ignores the importance of encouraging personal savings for retirement.

    At a minimum, today's workers should have the chance to control some portion of their payroll taxes in investment accounts that would both increase the "return" on payroll taxes and encourage supplemental private saving for retirement.

         Social Security reform should not occur in a vacuum.

    As we consider how to preserve Social Security, we must keep other challenges affecting retirees and their families in mind, especially the modernization of Medicare and efforts to encourage private long-term-care insurance.

    DLC - 2003, 2004, 2005

    "People need dramatic examples to shake them out of apathy," Bruce Wayne in Batman Begins.

    by kck on Thu Sep 02, 2010 at 08:00:19 AM PDT

    [ Parent ]

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