There Is No Crisis

How much was wrong with President Bush’s plan to destroy fix Social Security? Let’s see:

• Bush Failed to Address Benefit Cuts
• Bush Failed to Address Increases in Debt
• Bush Failed to Address Social Security's Long-Term Solvency

Bush also used the word “bankrupt” and “bankruptcy” in his State Of The Union speech, referring to Social Security. This of course is a total mis-use of the word (lie?), in which Bush gives it new meaning that it never had before. Yes, it is true that in about 2042, the Social Security administration will not be able to pay full benefits anymore. It will be able to pay approximately 75% of the benefits. Of course, that’s not bankrupt by any stretch of the word. No lawyer or economist would use it to describe such a situation. How would Bush’s plan do? Here’s a chart from the Congressional Budget Office (and here’s a table) — note how the President’s plan (denoted as CSSS Plan 2 or the Graham Plan) provides less benefits than the current plan.

Yes, there’s plenty to dislike with the President’s plan. And not much benefit to be seen.