PRESTOPUNDIT -- feeding memeorandum & econRT daily

GREG MANKIW on Social Security reform:

While personal accounts can be an important element of a new, sustainable Social Security system, fixing Social Security will also require hard choices to ensure that promises do not exceed resources. But this should not deter us. Avoiding reform is not an option, and delay would leave us with fewer and less-attractive choices. In the upcoming debate over alternative proposals, everyone should be careful to avoid the sophistry of those opposed to reform. In particular, we should be wary of comparisons between a new, reformed Social Security system and current law. The benefits now scheduled for future generations under current law are not sustainable given the projected path of payroll-tax revenue. They are empty promises. Unless a listener is discerning, empty promises will always have a superficial appeal.

Arnold Kling adds this:

I cannot believe that someone would seriously suggest that we should wait until there is a huge shortfall in Social Security funds before we do anything about it. It seems to me that if you are going to reduce people's retirement benefits, you ought to give them fair warning while they are young, rather than wait until the last minute.

But note Paul Krugman's remarks quoted below. Posted by Greg Ransom | TrackBack