Social Security Will Definitely Be There in the Future

14Aug08

I saw Matthew Yglesias use this video of John McCain calling Social Security as “disgrace” earlier today.

The questioner starts by saying that young people assume social security won’t be around for the them, which is perhaps the most commonly asserted falsehood in the American political scene. There are only two scenarios broad possibilities for the future of social security, neither of which is would involve social security disappearing.

1. Taxes go up, benefits are fully paid out. (Worst Case for tax payers)
2.Taxes stay the same, and benefits are not fully paid out. (Worst Case for Retires)

Even under the maximum possible benefit decline Social Security will still exist in a significant way. In all likelihood the benefit paid out to retirees will be higher then current retires get, just not as much full benefits.

It’s actually very unlikely that benefits will be the variable that gets changed. Seniors have a lot of political power, I don’t see them letting the majority of the strain go to them. And why should they? Rich people have more to give, and I suspect they’ll be forced to contribute more.

John McCain’s comments suggest that he thinks that today’s young will see benefits cuts tomorrow. Which he is really to say that tomorrow’s rich people will be successful at not paying higher taxes. In that America’s elite would force millions of retires into poverty, then yes the Social Security situation is a disgrace.

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Tags: John McCain, John McCain Social Security Benefits Cut, Social Security