(C) Daily Kos This story was originally published by Daily Kos and is unaltered. . . . . . . . . . . There is no Social Security Solvency Crisis. Why is MSNBC telling us otherwise? [1] ['This Content Is Not Subject To Review Daily Kos Staff Prior To Publication.', 'Backgroundurl Avatar_Large', 'Nickname', 'Joined', 'Created_At', 'Story Count', 'N_Stories', 'Comment Count', 'N_Comments', 'Popular Tags'] Date: 2023-02-18 It’s one thing for Republicans to threaten Social Security. It’s another for our “liberal” media to aid and abet them by pushing the false narrative that Social Security has a “solvency crisis.” Last Sunday, Maya MacGuineas of the Committee for a Responsible Federal Budget appeared on Jonathan Capehart’s MSNBC show. She derisively compared President Biden’s SOTU Social Security comments to an “AARP Pep Rally.” Lies on MSNBC Unchallenged by Capehart, she stated as fact: The “hole” in the Social Security Trust fund is so deep, changes must be made soon. Social Security faces “across the board” cuts if we don’t do something. To avoid these certain future benefit cuts, we need to raise taxes or cut benefits now. “Everything should be on the table” including raising the retirement age and means testing. Benefits to the elderly are higher than for the young, so we should consider cutting the latter to fund the former. Capehart nodded in agreement and even chimed in about how he’s OK with working past the retirement age. The MacGuineas interview followed one with Senator Maizie Hirono, who does a good job of explaining Republican threats to Social Security, but accepts that “something needs to be done,” based on the myth of Social Security insolvency. The future of social security x YouTube Video The Myth of Social Security Insolvency Economist Stephanie Kelton destroys this myth in her book, In The Deficit Myth, recently chosen by BookAuthoirity.org as No. 1 on a list of the Best Economic Theory Books of All Time: MYTH #6: “Entitlement” programs like Social Security and Medicare are financially unsustainable. We can’t afford them anymore. REALITY: As long as the federal government commits to making the payments, it can always afford to support these programs. What matters is our economy’s long-run capacity to produce the real goods and services people will need. Kelton, Stephanie. The Deficit Myth (p. 157). PublicAffairs. Kindle Edition FDR designed Social Security with FICA contributions and trust funds to gain popular support of the programs. People would “see” the funds were there to pay the benefits. But now, people “see” or are being told to “see” the funds are not there. So what would we do to provide for if and when Social Security benefits exceed the contributions? What can be done Congress can pass a law today providing that full Social Security benefits will be paid even if the Trust Fund is exhausted. Wait! They can do that? Not only can they, but they already do it for Medicare Parts B and D. Unlike the trust funds for Social Security and Medicare A and C, the Trust Fund for Parts B and D (“SMI”) has the authority to pay full benefits from general federal government funds. So the same Social Security and Medicare Trustees report containing scary predictions for Social Security and Medicare A and C states: “For SMI, the Trustees project that both Part B and Part D will remain adequately financed into the indefinite future because current law provides financing.” As Kelton writes, “That keeps SMI financially secure to infinity and beyond!” All Congress would have to do is apply the provisions of SMI to the other Social Security and Medicare Trust Funds and every one of MacGuineas statements falls. We can afford to pay for all benefits to current and future retirees even if contributions lag benefits. There is no reason to cut benefits, now or in the future, or even to raise taxes, now or in the future. Not even to raise the cap on contributions (which would violate President Biden’s pledge not to increase taxes on income under $400K). There is no reason to pit generations against each other to triage government funds. There is no reason to raise the retirement age. Any limits can be overcome The only possible limit would be whether the future United States has the productive capacity to supply the goods and services making up the benefits. It’s not the money, it’s the capacity. We need to make sure now that there are enough doctors, nurses, hospitals, medical equipment, housing, home assistance. We may need to spend more now to make sure we can sustain the needs of future generations. We need to forgive student loans so more can be trained to provide these services. The tragedy is not just that Republicans are trying to destroy the social safety net. It’s that Democrats are aiding and abetting them by propping up the myth that Social Security will die if we don’t cut benefits or raise taxes now. Democrats have done that from the 2000 “lockbox” to Bowles Simpson to “Chained CPI” to giving voice to dishonest generational warriors like MacGuineas. Time to stop. And you know who agreed with this in testimony to Congress in 2005. None other than Alan Greenspan, as described by Stephanie Kelton in Danger Ahead: Mike Pence Would Pick Up Where Paul Ryan Left Off. Rec. this and I’ll explain that further. [END] --- [1] Url: https://www.dailykos.com/stories/2023/2/18/2153360/-There-is-no-Social-Security-Solvency-Crisis-Why-is-MSNBC-telling-us-otherwise Published and (C) by Daily Kos Content appears here under this condition or license: Site content may be used for any purpose without permission unless otherwise specified. via Magical.Fish Gopher News Feeds: gopher://magical.fish/1/feeds/news/dailykos/