Dean Baker: The Economics of Social Security in the Presidential Race

[eridani]

http://www.nationofchange.org/economics-social-security-presidential-race-1351438304

In addition, the program is more necessary now than ever. The economic mismanagement of the last two decades has left the baby boomers ill-prepared for retirement. Few have traditional pensions. The stock market crashes of the last 15 years have left 401(k)s depleted and the collapse of the housing bubble destroyed much of their housing equity, which has always been the main source of wealth for middle-income families.

It would be great if we had reason to believe that the generations that followed had better retirement prospects, but we don’t. Even in good times the 401(k) system does more to enrich the financial industry than to provide a secure retirement income. Any reasonable projection indicates that Social Security will provide the bulk of retirement income for most middle-class retirees long into the future. In this context, the idea of cutting back benefits even for younger workers seems misguided.

But there is another set of economic considerations affecting the politics of Social Security. These considerations involve the economics of the political campaigns and the candidates running for office.

The story here is a simple one. While Social Security may enjoy overwhelming support across the political spectrum, it does not poll nearly as well among the wealthy people who finance political campaigns and own major news outlets.

[Angry Dragon]

1. The last paragraph .......duh ...........