Council of Economic Advisers Chairman N. Gregory Mankiw implies that any overhaul of Social Security would require cuts to promised benefits for future retirees. He told a tax policy conference "They [promised benefits] are empty promises."
Of course, Mr. Mankiw is known for saying things the Bush administration later said were misconstrued. He made the news back in February saying outsourcing would prove "a plus for the economy in the long run," and was simply "a new way of doing international trade."
Not wise at the time when outsourcing was shaping up as a campaign issue.
The Bush administration plans to outline Social Security reform later this month in a two day conference. The administration is touting privatization of a portion of Social Security, but that won't fix looming problems with the system. Only tax hikes or benefit cuts can address those problems. The private investment plan may divert attention from the more painful parts of the reform. (NYT)
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