August 28, 2012

IN OTHER WORDS, IT'S A PROBLEM THAT'S TOO EASILY FIXED:

Social Security's Woes Are Worse Than You Think (Ramesh Ponnuru, Aug 27, 2012, Bloomberg)

[W]e have a better sense of how to restrain the growth of Social Security than of Medicare.

One promising option is to reduce the growth of Social Security benefit levels, especially for high earners. The program could be reformed so that high earners who retire in 2040 receive the same benefit level that high earners who retire in 2020 will -- with an adjustment for inflation, but nothing more. Under the program as it stands now, those future retirees will get a bigger benefit.

Benefit levels for people in the middle of the income spectrum, meanwhile, could be set so that they more than keep up with inflation but don't rise as much as currently scheduled.

Posted by at August 28, 2012 7:14 PM
  

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