Saving Social Security - It's about the deficit

This morning on the Diane Rehm Show Peter Orszag of the Brookings Institute let the cat out of the bag. The National Debt is the problem. Social Security "reform" is the solution. Right at the end of the hour, his closing remark stated (paraphrasing here):

1. National debt will swell to 100% of current
   
2. If nothing is done now, then benefits for everyone will need to be reduced.
   
3. Plan #2 (from the Social Security Commission of 2001) will lock in benefits for those over 54 and reduce benefits for those younger.

my thoughts below the fold

My impression is that this plan to "save social security" is considered politically feasible because it divides the population. I suspect that the cut off age for "grandfathering in benefits" is designed to assure a large enough base of support for congress critters.

Dean Baker closed by saying that he didn't believe any action would occur at this time because it is such a political hot button. Too many people benefit from the current system structure.

What I took away from all this is that the crisis is the willingness of the federal government to overspend and ring up a huge deficit. This is the problem that should be emphasised. (Maybe a Frameshop diary could focus on this - "Save Social Security by balancing the budget".)

This was a very enlightening show and the archive will be available around 9am PST. I encourage everyone concerned to listen to find out what is being brewed inside the beltway.