Fixing Social Security Forever

Buongiorno specie al mio preferito!

It's all in the sales pitch. I think Sen. Obama could sell this one.

We know the problem; nothing but IOUs in the SS Trust Fund. It is and always was a 'pay as you go', revenue in, benefits out, surplus immediately spent program. This was fine during the entire working life of the Boomer demographic, the same already generational surplus paying demographic that was charged an additional surcharge, supposedly to fund this coming rainy day in a sound, actuarial manner.

Well, they couldn't help themselves. Too late to cry over that. So, what to do?

It's easy, if not painless. Here' is the pitch.

"Social Security, in its current defined benefits format, was a one time well deserved 'thank you' to the Greatest Generation that preceded us. Without their enormous sacrifices, none of the economies which followed in the free world would have existed. But as they fade into history, America must adjust Social Security so that it will last forever. We can do that easily,by converting it over some period of time to a defined contribution program. As such, it will last forever. What this means is, your future benefits are not defined. They will be determined by the then available revenues in the program. You want higher benefits? Then do what the Greatest Generation did, and have more kids."

"This means that the Boomer generational pain might be back end loaded. Well, the Greatest Generation's pain was front end loaded. But, consider the world without the sacrifices of that generation, if you can. You can't, the debt we owe them is immeasurable."

"So, buck up. Receiving less Social Security is not the same thing as leaving a leg in Normandy."

That will fix SS forever.

reguarda,
Frediano