FacebookTwitterGoogle+RedditEmail

Fiscally Imperiled Social Security?

by SETH SANDRONSKY

Political fantasy, anyone? Such fantasizing is a strange brew that can involve the daily press when it comes to the finances of Social Security. President George W. Bush aims to work next year with Democrats to fix the “fiscally imperiled Social Security system,” the Washington Post reported December 20.

The 2004 Social Security Trustees Report projects a shortfall in the program’s trust fund in 2042. Yes, that is 38 years down the road for the program’s trust fund, currently running a surplus as it was designed to do during the reign of President Ronald Reagan for the baby boomers’ retirements.

During the 1980s the annual growth of the U.S. gross domestic product (the output of all goods and services) was 2.7 percent. The 2042 depletion date for the Social Security trust fund is based on the trustees’ intermediate projection of 1.8 percent annual growth of GDP.

With a 1.8 percent annual growth of GDP between 2004 and 2042, Social Security would be the least of the nation’s problems. Think about it. With 38 years of 1.8 percent growth, private investment in new hires and equipment would basically slow to a crawl.

We can see a hint of such slow growth in the recent shrinking of the national housing bubble. U.S. growth of 2.6 percent in the second quarter fell to 2.2 percent in the third quarter of 2006. Spurring this drop in growth was the double-digit fall of investment in the building of new homes.

This means less employment for those who earn their wages in home construction. One immediate outcome is that they have less income to spend on goods and services. This means economic contraction.

Formerly employed construction workers spend less at retail businesses. These firms experience sluggish sales. Weakened consumer demand spreads to other sectors of the economy.

Sales slow. Investment weakens further. Now picture the U.S. with 36 years of a slowdown in GDP to an annual rate of 1.8 percent!

Back to Social Security and the 49 million Americans who receive their regular checks from the popular program. The Post and the president, apparently, are trying to convince the U.S. public that the finances of Social Security are imperiled and require a political solution. On that note for the new Democratic majority in Congress, there is no need for the party to find solutions to problems that do not exist.

There are plenty of domestic and foreign policy problems that do in fact require urgent attention from both parties. The financial solvency of Social Security is not one of them. The Washington Post is fantasizing about the future demise of Social Security.

Where is the journalistic balance? Where are the alternate news and views on the future solvency of Social Security? Why give readers political fantasy dressed up as news?

SETH SANDRONSKY is a member of Sacramento Area Peace Action and a co-editor of Because People Matter, Sacramento’s progressive paper. He can be reached at: bpmnews@nicetechnology.com

 

Seth Sandronsky is a Sacramento journalist and member of the freelancers unit of the Pacific Media Workers Guild. Emailsethsandronsky@gmail.com

More articles by:

CounterPunch Magazine

minimag-edit

bernie-the-sandernistas-cover-344x550

zen economics

December 06, 2016
Anthony DiMaggio
Post-Fact Politics: Reviewing the History of Fake News and Propaganda
Richard Moser
Standing Rock: Challenge to the Establishment, School for the Social Movements
Norman Solomon
Media Complicity is Key to Blacklisting Websites
Michael J. Sainato
Elizabeth Warren’s Shameful Exploitation of Standing Rock Victory
David Rosen
State Power and Terror: From Wounded Knee to Standing Rock
Kim Ives
Deconstructing Another Right-Wing Victory in Haiti
Nile Bowie
South Korea’s Presidency On A Knife-Edge
Mateo Pimentel
Some Notes and a Song for Standing Rock
Bill Fletcher Jr – Bob Wing
Fighting Back Against the White Revolt of 2016
Peter Lee
Is America Ready for a War on White Privilege?
Pepe Escobar
The Rules of the (Trump) Game
W. T. Whitney
No Peace Yet in Colombia Despite War’s End
Mark Weisbrot
Castro Was Right About US Policy in Latin America
David Swanson
New Rogue Anti-Russia Committee Created in “Intelligence” Act
George Ochenski
Forests of the Future: Local or National Control?
December 05, 2016
Bill Martin
Stalingrad at Standing Rock?
Mark A. Lause
Recounting a Presidential Election: the Backstory
Mel Goodman
Mad Dog Mattis and Trump’s “Seven Days in May”
Matthew Hannah
Standing Rock and the Ideology of Oppressors: Conversations with a Morton County Commissioner
Kevin Zeese - Margaret Flowers
#NoDAPL Scores Major Victory: No Final Permit For Pipeline
Fran Shor
The End of the Indispensable Nation
Michael Yates
Vietnam: the War That Won’t Go Away
Michael Uhl
Notes on a Trip to Cuba
Robert Hunziker
Huge Antarctica Glacier in Serious Trouble
John Steppling
Screen Life
David Macaray
Trump vs. America’s Labor Unions
Yoav Litvin
Break Free and Lead, or Resign: a Letter to Bernie Sanders
Norman Pollack
Taiwan: A Pustule on International Politics
Kevin Martin
Nuclear Weapons Modernization: a New Nuclear Arms Race? Who Voted for it? Who Will Benefit from It?
David Mattson
3% is not Enough: Towards Restoring Grizzly Bears
Howard Lisnoff
The Person Who Deciphered the Order to Shoot at Kent State
Dave Archambault II
Standing Rock Sioux Tribe Statement on Dakota Access Pipeline Decision
Nick Pemberton
Make America Late Again
Weekend Edition
December 02, 2016
Friday - Sunday
John Pilger
The Coming War on China
Jeffrey St. Clair
Roaming Charges: The CIA’s Plots to Kill Castro
Paul Street
The Iron Heel at Home: Force Matters
Pam Martens - Russ Martens
Timberg’s Tale: Washington Post Reporter Spreads Blacklist of Independent Journalist Sites
Andrew Levine
Must We Now Rethink the Hillary Question? Absolutely, Not
Joshua Frank
CounterPunch as Russian Propagandists: the Washington Post’s Shallow Smear
David Rosen
The Return of HUAC?
Rob Urie
Race and Class in Trump’s America
Patrick Cockburn
Why Everything You’ve Read About Syria and Iraq Could be Wrong
Caroline Hurley
Anatomy of a Nationalist
Michael Hudson – Steve Keen
Rebel Economists on the Historical Path to a Global Recovery
Ayesha Khan
A Muslim Woman’s Reflections on Trump’s Misogyny
FacebookTwitterGoogle+RedditEmail