Wednesday, February 8, 2023

A subject about which no one will speak plainly

 First, some thoughts on the State of the Union address more broadly.

I didn't watch it, and all reportage I've come across about it today confirms my decision.

It also confirms the likelihood that I'll once again sit out the election next year. The essence of each of the major US political parties in their present forms was brought into sharp relief: The Democrats remain the party of wealth redistribution, climate alarmism, and identity politics militancy. The Republicans are a collection of cowards, sycophants, nuts and out-and-out zoo animals. 

But I want to discuss a Washington Examiner piece by Tiana Lowe that deserves wide readership. It's short, and it's some bracing straight talk about that perennial third rail: Social Security.

She starts by recounting what President Biden had to say about it last night:

"So tonight, let’s all agree to stand up for seniors," Biden said. "Stand up and show them we will not cut Social Security. We will not cut Medicare. Those benefits belong to the American people. They earned them. If anyone tries to cut Social Security, I will stop them. And if anyone tries to cut Medicare, I will stop them."

Lowe point out that this is a lot of sound and fury over something that ain't even happening:

But not only is Biden arguing against a straw man here — sadly, no sitting Republicans actually are pledging to cut entitlements — but he is also forgetting that doing nothing is tantamount to a massive cut of Social Security benefits!

Why is that the case?

Absent a major reform from Social Security, the program will become insolvent in a little more than a decade. Upon insolvency, benefits will be slashed by 20% to 25% across the board.

Okay, nobody is talking about cutting benefits or structurally reforming the program. Well, where do we look next to face our country's debt-and-deficit precipice?

If Republicans wish to balance the budget within the decade without touching entitlements or defense spending, the Committee for a Responsible Federal Budget projects Congress would need to slash 85% of the rest of the budget.

Could tax hikes fill in the void of the Social Security Trust Fund once insolvency hits? Maybe — if Democrats and Republicans were comfortable with jacking up the payroll tax by 25%.

This is what happens when enough people adopt the mindset that government ought to be about the task of ensuring that people can age gracefully.  


 

 

 


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