What’s in store:
The success of President Bush’s push to remake Social Security depends on convincing the public that the system is “heading for an iceberg,” according to a White House strategy note that makes the case for cutting benefits promised for the future. Calling the effort “one of the most important conservative undertakings of modern times,” Peter Wehner, the deputy to White House political director Karl Rove, says in the e-mail message that a battle over Social Security is winnable for the first time in six decades and could transform the political landscape. The White House confirmed the authenticity of the e-mail but did not have an immediate comment.
In no way is the Bush plan a winning proposition, if the media doesn’t bend America over for Bush.
The 75 year deficit projections of the Social Security Trustees are based on annual GDP growth of 1.5%.
Bu$hCo’s Social Security Commission Privateers base their estimates on an annual stock market return of 6.5% over inflation.
It is simply impossible to have 6.5% market returns and GDP growth of only 1.5%.
If the Social Security Trustees used the larger GDP growth figures implied by the 6.5% market growth, there is no long term problem.
One set of figures for the old system, another set of figures for the new. Please pass it around.
Here is J Brad DeLong saying the same thing.