Todays New York Times warns against the misleading assertions of the Bush Administration concerning Social Security:

A Bridge to Sell

Published: January 24, 2005


One of the main talking points in the administration's drive to privatize Social Security is that retirees have nothing to fear. "If you're a senior receiving your Social Security check, nothing is going to change," President Bush said recently. Mr. Bush seems to presume that older Americans are indifferent to the future retirement security of their children and grandchildren. But even taken on its face, the argument does not hold up.

The president promises that under a private retirement scheme, anyone age 55 or older would continue to receive full Social Security benefits. What he repeatedly fails to mention is that privatization would require some $2 trillion in new borrowing over the next 10 years and an additional $4.5 trillion in the decade thereafter. That's on top of the trillions that need to be found to cover the costs of Medicare and Medicaid and - if the president gets his way - to make this decade's tax cuts permanent. It's foolhardy to assume that the government could continue to meet all of its obligations, including the payment of Social Security benefits, under such a mountain of debt.