Download A Well-Tailored Safety Net: The Only Fair and Sensible Way by Jed Graham PDF

By Jed Graham

This exciting e-book introduces the 1st Social defense reform suggestion adapted to fulfill the nation's monetary demanding situations and deal with an getting older population.

• greater than 50 charts and tables aspect the controversy over Social safety reform, together with the money advantages retirees may get less than a number of proposals

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Extra info for A Well-Tailored Safety Net: The Only Fair and Sensible Way to Save Social Security

Example text

What happens is we take your money, we pay money out for the promises for those people who have retired, and if we’ve got anything left over, we spend it on things other than Social Security,’’ Bush said. ‘‘That’s just the way it works. It’s been working that way for a long period of time. ’’9 Democrats have long complained that Bush looted the trust fund, and even members of his own party criticized his fiscal stewardship. But consider that in 2004, Democratic presidential nominee John Kerry made exactly the same promise with regard to fiscal responsibility as Bush—to cut the budget deficit in half by 2009.

But a failure to make the necessary hard choices—and make them soon—will shackle coming generations with massive debts that will eat away the foundations of government. ’’8 And when he invited lawmakers from both parties to a White House summit on Social Security that December, Clinton reminded them that reforming Social Security wasn’t just about saving money, but also about providing additional help for those most in need of Social Security’s support. He noted that about 20 percent of elderly single women were living in poverty.

But the huge problem with this assumption is that the extra corporate taxes won’t materialize unless Congress gets its fiscal house in order, which would be much more difficult to do if RyanSununu became law. According to basic economic theory, the diversion of Social Security taxes into personal accounts would do nothing to stimulate faster economic growth if it is financed ‘‘A BAD IDEA’’ 39 by an increase in government debt. In that case, the additional amount of money available for investment in the corporate sector would be exactly offset by the amount of private investment dollars that would be needed to purchase new government debt.

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