Reply #38: We Oppose It Because it Worsens the Problem [View All]

It's true that the demographic bulge will create a problem in 40-50 years. It's manageable. And the problem will peak and the situation will improve eventually on its own, simply due to demographics. But to save Social Security, it's necessary to make sure it's properly funded for the long term and make some adjustments.

Bush's plan to "save" Social Security goes in the wrong direction. The money for the private accounts comes OUT OF the Social Security fund.

It is true that Social Security won't have to pay benefits on money that is diverted. But the timing is deadly: Most of the people opting for the private accounts will be younger workers who won't collect benefits from decades. So for the next forty years, contributions to Social Security will drop much more than payouts. That greatly increases the financial crunch.

Something has to give, and as long as Republicans are in power it won't be taxes. Benefits WILL be cut under Republicans. They're already floating the idea of giving much smaller increases, with the result that they will NOT keep up with wages.