Social Security, a few ideas.

There are a couple of points about the current Social Security issue that should be beyond debate.

1. Something has to be done. The Social Security Board of Trustees project a shortfall in funding for the program starting in 2041. Their numbers should be respected, and it is reasonable to assume that within thirty to forty years this will happen if we do nothing. The projected 75 year shortfall is about 4 trillion dollars.

This does not mean social security is 'bankrupt' as out President keeps claiming, it means that IF we do nothing we will start to see a short fall. To meet the target, we would need to set aside an additional 54 Billion dollars a year, starting right now. For perspective, that is much less than we are spending on the war in Iraq this year.

2. Presidents Bush's only proposal to date is to carve out private accounts. This plan would do nothing to address the current shortfall, NOTHING. In addition is would cost an extra 1 to 2 trillion dollars. He refuses to mention any other plans, but VP Dick Cheney has admitted 'other things' would have to be done.

I have no doubt that this is where the benefit cuts come in.


We have to find a viable compromise for the system, and I have a starting point that I would love to see calculated.

1. Remove the wage cap on tax collection for social security, this alone could add 40 billion a year to the program.

2. Raise the retirement age by 1 year.

3. Change the way that benefit increases are calculated. The bottom 50% will still be indexed on Wages, the top 25% indexed on prices. The 51-75% group will get the increased at the average of the 2 other sets of numbers.

4. Allow add on private accounts.

Run the numbers and see where we stand. We may have a fix in place, without having to kill the system to 'save it'. However, I suspect that killing the system is the true goal of many who are pushing for change.