WHAT'S A TRILLION DOLLARS?

Shaheen, Sununu testy on TV (MARK HAYWARD, October 15, 2002, Manchester Union Leader)

On Social Security, Shaheen said Congress should stop borrowing from the Social Security trust fund and denounced privatization.

"Imagine if you had to depend on the stock market for the last 18 months," she said.

Sununu said Shaheen has no plan to strengthen Social Security, which will begin to draw on the trust fund in about 15 years.

Sununu said he supports a guaranteed minimum benefit and no changes for people who rely on the retirement program today or in the next 20 years.

But younger workers should be able to invest a portion of their Social Security contributions.

"In the long run, that means more benefits, more reserves," Sununu said.

Shaheen said the privatization would cost $1 trillion over 10 years, something the pay-as-you-go system cannot afford.

Ms Shaheen's claim sounds impressive until you realize we already have a two trillion dollar budget. Even if you were to freeze it at today's level, we're only talking about redirecting 5% of government outlays to Social Security over the next decade. To put it in further perspective; we've got a GDP over $10 Trillion now (I think). So you're looking at spending less than 1% of GDP to start privatizing Social Security and make the system more rational and productive. Posted by Orrin Judd at October 15, 2002 7:43 AM