Social Security Facts - #12:
INDEXING!
Given that Social Security is simply a transfer of wealth from the young (workers) to the old (retirees), a pay-as-you-go system that has been sold for seven decades as an insurance program with assets (of which there are none), then indexing is the second most obvious change and should happen immediately!
There should never be any AUTOMATIC indexing. This takes away putting any intelligence into these adjustments. Things change. Any indexing should be changed with the intelligence of these changing things.
I suggest a committee of 5 economists - three selected majority leader of the Senate and 2 selected by the minority leader of the Senate - be selected at the start of each Congress. They must study the need for Social Security increases for 1 year and submit a recommendation to Congress at the end of that period. Then each Congress votes for the recommended changes before the end of their service. This gets us an adjustment each two years.
Rules for the economists would have to be established to keep "politics" out of the review (I do realize this may be a difficult problem, but it is worth a try).
Along with Means Testing, this change would do wonders towards getting Social Security back on a sound fiscal basis.
What do you think!
Given that Social Security is simply a transfer of wealth from the young (workers) to the old (retirees), a pay-as-you-go system that has been sold for seven decades as an insurance program with assets (of which there are none), then indexing is the second most obvious change and should happen immediately!
There should never be any AUTOMATIC indexing. This takes away putting any intelligence into these adjustments. Things change. Any indexing should be changed with the intelligence of these changing things.
I suggest a committee of 5 economists - three selected majority leader of the Senate and 2 selected by the minority leader of the Senate - be selected at the start of each Congress. They must study the need for Social Security increases for 1 year and submit a recommendation to Congress at the end of that period. Then each Congress votes for the recommended changes before the end of their service. This gets us an adjustment each two years.
Rules for the economists would have to be established to keep "politics" out of the review (I do realize this may be a difficult problem, but it is worth a try).
Along with Means Testing, this change would do wonders towards getting Social Security back on a sound fiscal basis.
What do you think!
posted by Jim | 2:59 PM
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