Social Security, solvency and political spin

[lovuian]

How credible are President Bush's dire predictions?ANALYSIS
By Martin Wolk
Chief economics correspondent
MSNBC
Updated: 6:20 p.m. ET Jan. 14, 2005In its 70-year history, Social Security has faced dire predictions, including the threat of insolvency. In the mid-1970s and again in the 1980s, the program faced staggering projections of short-term and long-term deficits and came within months of depleting its reserve funds.



In 1977, changes were made that were supposed to keep the system solvent well into the 21st century. But after five tumultuous years Congress and President Reagan were forced to confront the issue again. This time a bipartisan group of lawmakers and business leaders, under the direction of Alan Greenspan, came up with a solution that put the system on a path that is projected to keep it solvent until 2042 or 2052, according to the most widely accepted estimates.

Nancy Altman, who was an aide to Greenspan on the Social Security commission, remembers “exactly the same kind of hype” as we are seeing today. “It was exactly the same — the sky is falling,” said Altman.
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[CountAllVotes]

1. Interesting read

I suspect it is correct even though everyone believes we now have a "crisis".

:kick:

[Yupster]

2. It's not a crisis

There are two problems

1. Once a generation or so the system needs to be reconfigured a little bit. It's about time to do it again.

2. Some how the surpluses have to be taken away from congress's clutches. If they can reach it, they will spend it. I suggest investing it each month in bank cd's.