Back in January 2005, when President Bush was ramping up his attack on Social Security, Peter Wehner, a White House political strategist, wrote in a memorandum to conservative groups: “We need to establish in the public mind a key fiscal fact: right now we are on an unsustainable course. The reality needs to be seared into the public consciousness.”
Bush desperately wanted to privatize Social Security—to send the hundreds of billions of dollars to Wall Street so that the geniuses who manage money could blow the whole wad on their speculative schemes. Just imagine how that would have worked out! The already bubbling real estate and commodity markets could have reached an even more stupendous peak before crashing into what presumably would have been an even worse Global Financial Collapse. And today’s seniors would be dumpster diving without Social Security to fall back on.
Bush lost that squirmish but he won the war. Now even the “friends” of Social Security have the program’s unsustainability seared into their consciousness. The program is broke, bust, bankrupt. If you are young, you’ll never collect a dime from the program. But is there any truth to the rumor? Of course not.Economonitor — Great Leap Forward
Social Security’s Unfunded Entitlements: Much Ado About Nothing, Or Little To Do About Something?
L. Randall Wray | Professor of Economics, UMKC