Jason Furman analyzes the impact of the Pozen plan as well as the Pozen plus privatization plan on solvency in various ways. As far as long-run solvency defined in terms of the size of the 75-year shortfall, the former closes only 60% of it and the latter closes only 30% of it. In terms of the estimated date for Fund “exhaustion”, the Pozen plus privatization plan accelerates the date from 2041 to 2030. In terms of the estimated date for when benefits exceed receipts, the Pozen plus privatization plan accelerates the date from 2017 to 2011.
Personally, I think this last criteria is just plan silly – but the President and his minions tout it ad nausam. Jason Furman’s analysis shows that the proposal these minions are touting makes matters worse per their favorite criteria.