The Bush Plan For Social Insecurity

President Bush recently promoted the so-called “Pozen Plan” to fix destroy Social Security. What does the author, Robert Pozen, think? Some quotes:

“I would advise the president to say that carve-out accounts are no longer required.”

Talk of an “ownership society,” Pozen said Wednesday, is “a weak basis” for arguing for an overhaul.

Economist Brad DeLong also has some revealing comments about the Bush plan.

It is a clown show, an episode of stupidity of a jaw-dropping magnitude:

1. The administration’s Social Security gurus shove Bush out there with talking points saying that we need to act now to pass the Bush plan, because starting in 2017 Social Security will start taking resources away from the rest of the government and that’s a very bad thing — and then they roll out a plan in which Social Security starts taking resources away from the rest of the government in 2011.

2. The administration’s Social Security gurus shove Bush out there with talking points saying that passing the Bush plan is essential because if we don’t the Social Security trust fund balance will hit zero in 2041, and big benefit cuts will then be necessary — and then they roll out a plan in which the Social Security trust fund balance hits zero in 2030.

3. The administration’s Social Security gurus shove Bush out there with talking points about the importance of restoring actuarial balance to Social Security — and then they roll out a plan which closes less than a third of the 75-year funding gap (and refuse to specify the plan in sufficient detail to allow anyone to do a longer-run analysis).