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Krugman: Social Security is solvent

Krugman writes the program is solvent and that the money is in a special fund. I’ve heard and read that’s not true; that the special fund is IOUs…from the government. So, in reality…it’s broke.

One Comment

  1. I glanced at the author’s writing history, and it is kind of all over the ballpark. He has been nominated (or maybe given) a Nobel Prize, so that pegs him as a socialist or globalist, and most of his writing is in that category. But he has a few gems in there too. Just like a few nuggets of this article are true.

    But overall, this guy should be put into the same category as a dingbat. He correctly states that SS can draw from the general fund, but ignores that the general fund has been running in the red for two decades, and stealing from the SS trust fund. (The only way the federal budget got “balanced” in 1998 was to steal about $200B from the SS trust fund, and that, BTW, was under a Republican Congress that fought tooth and nail against Clinton to get that close)

    He correctly states, also, that SS only amounts to about 7% of the GDP, but fails to mention that he is only counting cash payments to seniors. Ignores the disabled, ignores the blind, ignores medicare. The BIGGEST problems are in Medicare BTW, not in SS. Medicare is about 5 times as big as we expected it to grow to. And Bush and the Republican congress did not help this matter at all.

    He also correctly points out that in the Blue Collar Class of our society, many workers cannot keep working past about 60 because they are disabled. The White Collar Class and some Skilled Labor can work past there, but even in Skilled Labor, it gets really hard after 50, and near impossible for the majority after 60. Even though we in Skilled Labor live longer, we often cannot hold a job after middle age because employers want younger workers (for a variety of reasons, including gullibility).

    But while he makes a good case for not changing the age of eligibility, he fails to address the other possibility. Means testing. Probably for the same reason that it is unpopular with congress. It would hurt them personally. He, like many others in his elitist class cannot fathom letting someone else draw SS if they cannot draw it too. And benefits are according to how much you have paid in, so the elitist class will stand to lose quite a bit if they have a means test.

    Posted on 18-Aug-10 at 18:01 | Permalink

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