The right's Social Security scare tactics

http://www.salon.com/opinion/feature/2009/05/19/lind/

By Michael Lind
May 19, 2009 | Last Tuesday, just before the release of the annual Social Security trustees report, I predicted that no matter what the report contained the perennial enemies of America's most effective and efficient universal social insurance program would cite it as proof that Social Security needs to be means-tested, privatized or both. The report is in, and its contents are far from dramatic. The (dubiously) estimated date at which, absent changes, the trust fund dries up and Social Security shifts to a pay-as-you-go program paying most, but not all, promised benefits has moved up slightly from 2041 to 2037. But to listen to the critics of Social Security on the right you would think that Godzilla was blocks away from the Fulton Fish Market.

Posting at the libertarian Cato Institute's Cato@Liberty blog, Michael Tanner claims to be alarmed that Social Security's "unfunded liabilities -- the amount it has paid beyond what it can actually pay -- now total $17.5 trillion. Yes, that's trillion with a 'T.' That's $1.7 trillion worse than last year."

Is the government really going to have to come up with $17.5 trillion in the next year or two to pay for Social Security, as more baby boomers retire? Undoubtedly that is what some opponents of Social Security want to frighten their fellow Americans into thinking. What Tanner neglects to tell his readers is that this big, scary number purports to measure Social Security's unfunded liabilities over an infinite time horizon and assumes there are no changes made between now and eternity. Any number of relatively minor changes, from lifting the cap on the Social Security payroll tax to infusing general revenues, could preserve the program in its present form into the 22nd century without insolvency or harm to the U.S. economy.