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Thanks, Joe.
May 22nd 10:46:00 AM
Paul Krugman's latest New York Times op-ed, "Talk-Show Joe," critiqued Senator Joe Lieberman for (among other things) the Senator's stance on Social Security. Krugman claims:
Mr. Lieberman repeatedly supported the administration's scare tactics. "Every year we wait to come up with a solution to the Social Security problem," he declared in March 2005, "costs our children and grandchildren and great-grandchildren $600 billion more." This claim echoed a Bush administration talking point, and President Bush wasted little time citing Mr. Lieberman's statement as vindication. But the talking point was simply false, so Mr. Lieberman was providing cover for an administration lie.
The main problem with Krugman's argument is that it just plain wrong. First of all, the "$600 billion" figure that is the estimated cost of a year of inaction is NOT a Bush administration figure. This statistic is computed by the Social Security Administration and reported in their non-partisan Trustees Report. Here's the exact quote from the SSA (in trillions instead of billions of dollars):
In last year's report the unfunded obligation over the infinite horizon was reported as $11.1 trillion in present value as of January 1, 2005. The change to the later valuation date for this report, January 1, 2006, tends to increase the measured deficit by about $0.6 trillion.
This quote makes a second problem with Krugman's statement clear: the figure was not and is not a "lie." In fact, in a 3/11/05 op-ed Krugman gave credence to figures computed by the Social Security Administration. When speaking of last year's Trustees Report Krugman admitted "I don't expect to see books that are literally cooked: Stephen Goss, the [Social Security] agency's chief actuary, has an excellent reputation."
If there is anyone misleading the public about the severity of problem with the current system, it is "Talk-Show Paul", and Krugman would do well to thank Senator Lieberman for the Senator's honest willingness to discuss a severe policy problem.
With all this mud slinging across and on the same side of the aisle, it is no wonder the Social Security reform debate keeps hitting so many blockades. But at S4, we will at least thank Senator Lieberman for recognizing the current system is creating an enormous problem for future generations and invite Mr. Krugman to start writing honestly about the reform debate.
Posted by Nicola Moore
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