Destroying Social Security In Order To Save It
Via Atrios. An interesting phenomenon has emerged - taking on Krugman is not a smart thing for a public pundit to do. First, Krugman is usually right. Second, Krugman does a great job of defending his positions, usually making his critic look foolish (see Brooks, David.) And now a new reason, Krugman's views gets defended by a lot of smart people. Today, Ruth Marcus of the Washington Post discovers this:
Ruth Marcus shows two things in her commentary today, "Krugman vs. Krugman". First, she hasn't a clue about Social Security financing. Second, she has no problem at all presenting a distorted picture to rationalize her clueless position.. . . [H]ad Ruth Marcus included this quote from Paul Krugman's 2005 piece in her editorial (or quotes from other pieces of the vast amount Krugman has written about Social Security after 2001), it would have changed the interpretation of the quotes she includes in her article. Here, Paul Krugman explains why the future of Social Security was at issue at that time:
Four years ago, I and many other economists urged policymakers to think about the future cost of Social Security benefits, not because we thought there was anything wrong with Social Security itself, but because we regarded the future costs as a compelling reason not to cut taxes even if the overall budget was in surplus.Keep that quote in mind, i.e. that the worry was that the Bush tax cuts would eat away at the accumulated Social Security surplus, as they did, as you read Ruth Marcus' desperate attempt to justify her doom and gloom about the future of Social Security . . .
MORE.
Krugman vs. Krugman, by Ruth Marcus, Commentary, Washington Post: In liberal Democratic circles, the debate over Social Security has taken a dangerous "don't worry, be happy" turn.The argument has two equally dishonest components. The first is to deny that Social Security faces a daunting financing problem... The second is to mischaracterize the arguments of those who advocate responsible action, accusing them of hyping the system's woes.
One prominent practitioner of this misguided approach is New York Times columnist Paul Krugman. "Inside the Beltway, doomsaying about Social Security -- declaring that the program as we know it can't survive the onslaught of retiring baby boomers -- is regarded as a sort of badge of seriousness, a way of showing how statesmanlike and tough-minded you are," Krugman wrote last week. "In fact, the whole Beltway obsession with the fiscal burden of an aging population is misguided."
Somebody should introduce Paul Krugman to . . . Paul Krugman.
"[A] decade from now the population served by those programs [Social Security and Medicare] will explode. . . . Because of those facts, merely balancing the federal budget would be a deeply irresponsible policy -- because that would leave us unprepared for the demographic deluge, with no alternative once it arrives except to raise taxes and slash benefits." (July 11, 2001)
"Broadly speaking, the next administration . . . will face two big economic tests. One . . . is whether it can stick to a fiscal policy, including a policy toward Social Security, that prepares this country for the demographic deluge." (Nov. 12, 2000) ...
What Marcus proved of course, is that Krugman was RIGHT to oppose the Bush tax cuts because it is the fiscal irresponisbility of the Bush Administration that COULD put Social Security in danger IF the Social Security trust fund's legal rights are not respected by the Beltway.
Krugman distrusts the Beltway. Indeed, the only way there could be a Social Security crisis is if the 1983 fix of Social Secuirty is not respected by Washington. Which begs the question, why would any future "fix" be respected?
If there is a crisis, the crisis is people like Ruth Marcus, who instead of fighting for the existing fix, insist that the existing one be destroyed so we can have a brand new "fix" that we can break. Remarkable.
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