Mike Johnson touches the third rail
You may have seen that Speaker Mike Johnson wants Social Security to be “fixed” after the midterms. The fact that he wants to wait until after the midterms tells you everything you need to know. He’s using “fixed” in the sense of what you do to your dog if you don’t want puppies. Republicans know this is radioactive and don’t want to run for re-election on it. And Johnson wants a stick to beat Democrats with when he’s loses the speaker’s gavel in January.
Johnson argues that SS must be cut because it’s such a large share of the federal budget and topping it off to prevent benefits cuts in the early 2030s is too expensive. Setting aside the fact that SS is separately funded and so has zero effect on the deficit, how large is SS relative to the defense spending? Paul Krugman brings the receipts:
“. . . while the cost of maintaining Social Security benefits at their promised level isn’t trivial, it is in fact affordable. According to the Trustees’ report, the actuarial balance of OASDI up through 2050 — the amount of additional funds it would need to keep paying full benefits for the next 25 years — is 1.06 percent of GDP. To put that number in perspective, the Trump administration proposes increasing military spending next year by $420 billion, equivalent to about 1.4 percent of GDP – without any discussion of whether that’s affordable.”
I wince at Krugman’s use of the word “promised.” SS doesn’t promise any specific number, it makes *projections*. If nothing is done, projected benefits will drop by 22%. But Republicans would rather goose defense spending and tax cuts for the wealthy rather than fully fund social programs.
Mike Johnson wants to cut Social Security
Johnson argues that SS must be cut because it’s such a large share of the federal budget and topping it off to prevent benefits cuts in the early 2030s is too expensive. Setting aside the fact that SS is separately funded and so has zero effect on the deficit, how large is SS relative to the defense spending? Paul Krugman brings the receipts:
“. . . while the cost of maintaining Social Security benefits at their promised level isn’t trivial, it is in fact affordable. According to the Trustees’ report, the actuarial balance of OASDI up through 2050 — the amount of additional funds it would need to keep paying full benefits for the next 25 years — is 1.06 percent of GDP. To put that number in perspective, the Trump administration proposes increasing military spending next year by $420 billion, equivalent to about 1.4 percent of GDP – without any discussion of whether that’s affordable.”
I wince at Krugman’s use of the word “promised.” SS doesn’t promise any specific number, it makes *projections*. If nothing is done, projected benefits will drop by 22%. But Republicans would rather goose defense spending and tax cuts for the wealthy rather than fully fund social programs.
Mike Johnson wants to cut Social Security
Stop rolling-over the Treasury debt held by the Trust Fund and mirror Trump family investments. That should get way better returns. Almost guaranteed, at least through 2028.
Cold, Eric, very cold. And yet so true!
@Eric,
LOL!
Of course, Congress would have to remove the statutory requirement that the Trust Fund be exclusively invested in treasuries.
Joel:
Correct.
Eric:
In other words be a thief and attack those who can not defend themselves with income. The Treasury debt is far safer than investing in one of Trumps excursions where he declares bankruptcy and leaves the scene of the takings by him with his funds plus some. He is no icon to be admired.
Mint trillion dollar coins, put rump’s face on them …
There are still things which can be done to secure Social Security for the next 50 or so years. Dale would explain on them.
When it was ten years out, a simple increase in taxes of 1 tenth of 1% increase for people and employers each year for 10 years would secure the system. So, nobody did anything a ways back. So today, maybe it is 2 tenths of 1% for people and businesses for 5 years.
Bumping up taxable income for SS. would help also. Income has increased. Maybe it is time to tax income up to $259,000 or 300,000? The millionaires, etc. are done in 1 or 2 months.
Mikie is such a little sh*t. When you look at his background. He didn’t do much outside of being a religion commando. He has a family. That is about it. He is the type of person that would take on those who have no defense, hence his attack on Social Security and the elderly.
There is nothing that says SS could not be funded by other methods. The Gov does not stop in it efforts to fund the military and other programs it likes. Pass the bill and print the money.
The whole argument is just plain stupid.