Sunday, April 30, 2006

Social Security Meta-Archive: May 2005

[Part of the Social Security Meta-Archive: 2005]

Social Security Meta-Archive: April 2005

FIXING SOCIAL SECURITY [PDF]
Former Social Security Commissioner Robert Ball writing for the Century Foundation.
The Regressive Impact of the Progressive Indexation of Social Security Benefits [PDF]
Dean Baker of the Center for Economic and Policy Research

5/1
Warren Buffett and Charles Munger on Social Security
DeLong links to coverage of Buffett's opposition to privatization.
In Praise of Bush's Honesty (Honest)
Michael Kinsley.
SNATCHING DEFEAT FROM THE JAWS OF VICTORY WATCH
Max Sawicky responds.
5/2
Universalism and Social Security
Mark Schmitt at the Decembrist:

One fascinating aspect of the Bush campaign to privatize Social Security has been the desperate attempt to find some constituency, somewhere, for whom Social Security is a manifestly bad deal. And it's amazing how hard it has been for them to do it:

First there was the claim that it's a bad deal for African-Americans. That was one that you didn't know whether to laugh at or be offended by. (My colleague Marcellus Andrews probably did the best job of combining the two emotions.) Then there was the claim that it's a bad deal for younger workers, but that depends entirely on the premise that the government will chose to default on the Treasury bonds.

Finally, as you could see in Bush's press conference Thursday night they've identified a constituency that supposedly doesn't get a good deal from Social Security: It's a widow or widower whose spouse dies shortly before retirement. The surviving spouse would get either his/her own benefits, or the spouse's, whichever is higher, "but not both," as Bush points out. And that's true. Of course, if the spouse dies and leaves children under 18, survivor benefits under Social Security will be a lifesaver for the family. (As Hans Riemer of Rock the Vote points out, young people are familiar with Social Security and like it, because they think of it as the program that helped Johnny's family when his dad died.) And if the widow didn't put in at least ten years in the workforce herself, or didn't earn as much money, the benefits through her husband's Social Security are much more than she would get on her own. So, to summarize Bush, the person for whom Social Security is a raw deal would be a widow or widower whose spouse dies at, say, 60, after the kids are grown but before retirement, and in a household where both spouses worked for much of their adult lives at relatively comparable incomes. The system is "unfair" to that widow or widower, according to Bush, because she only gets Social Security benefits for one person, not two.

It's a pretty cool social program that's a good deal for everyone except a person in that particular situation. And what's so bad about one person's getting benefits for one person anyway?

(Of course, as was finally pointed out in the Senate Finance Committee hearing last week, the forced annuitization feature of private accounts means that they're not really inheritable either, at least not after the annuitization has occurred.)
A Gut Punch to the Middle
Paul Krugman on the effects of Bush's version of progressive indexing.
Krugman Clarifies Liberalism
A response at the blog JustOneMinute, triggering an extended comment thread.
Social Security's Progressive Paradox
Julian Sanchez of the libertarian magazine Reason disputes the insurance aspect of Social Security.
5/3
Talking Points Memo
Matthew Yglesias responds.
My Socks are Cold Feet Insurance!
Will Wilkinson, another libertarian, responds to Yglesias at The Fly Bottle:
Now, yes, it turns out that we don't know exactly how long we're going to live, and so there's some chance we might outlive our savings. Or we might face some kind of financial catastrophe that guts our retirement nest egg. You don't know how long you'll be able to be a productive contributor to the economy, etc. But the point that Matt fails to address is that insofar as Social Security "insures" against these contingencies, so does means-tested welfare, and to a very great extent, so do personal accounts. Means-tested benefits are much MORE like insurance in the sense they kick in only upon the occurrence of some kind of loss or hardship. An annuity from a personal retirement account is exactly like a stream of Social Security checks, except that you actually own something. If Social Security is insurance, then so is a personal account annuity. The reason why Feldstein, in his presidential address to the APA, "Rethinking Social Insurance" discusses the current system, personal accounts, and means-tested benefits as alternative forms of "insurance" is simply that if the current system counts as social insurance, then so do the alternatives.

Regular commercial insurance works by subsidies across the risk pool. (And is by its very nature "social.") Premiums are actuarially determined on the basis of bunch of variables like the probability of the occurrence of loss and the likely cost of reimbursing it. It's a kind of bet. The premiums of people who get lucky, and don't experience the relevant kinds of losses, reimburse people who get unlucky and do experience them.

Social Security isn't like this at all. It "reimburses" everyone who turns 65 (or 62 or 67). Like I said, this event isn't a loss; it is in fact correlated with being rich. A system that pays everyone--Warren Buffet, Tom Cruise, etc.-- is conspicuously un-insurance-like. It's sort of like a system of home-owners insurance where everybody's house burns down ten years after you move in. There's nobody who gets lucky, so no way to transfer risk across the pool. Rather than being structured at all like regular insurance, Social Security is a system of chained intergenerational transfers -- a chain letter, a Ponzi scheme -- which is not what insurance is.

If you insist on calling non-insurance insurance, then Social Security is like insurance in the way that any stream of income is like insurance. It makes it possible to pay for stuff that you wouldn't otherwise be able to pay for. But that's not what insurance is, except in the loosest possible sense. You don't think that you have insurance because you have a salary. You don't think you have disability insurance because you walk around with a helmet on. Most people who receive Social Security are perfectly able to "self-insure." And Social Security improves their ability to self-insure largely because it's replacing income that the government took away in the first place.

The point is: A system that pays everyone benefits upon the occurrence of a near-universal, non-loss event by means of a system of intergenerational wealth transfer just isn't insurance in the paradigmatic sense. If "insurance" just means "making sure that people don't suffer when they don't have enough money," then ANY system that makes sure that people have enough money is insurance. Inter-family transfers, churches, charities, clubs, etc. count as insurance in this sense. And so do means-tested old age benefits and personal retirement accounts.
In comment "Gareth" responds:
Libertarian: It's not an insurance system because people want to live to be old. That's not a risk.

Socrates: But outliving your savings is a risk. And an actuarially predictible one. So it makes sense to pool that risk. Which is what insurance is.

Libertarian: OK. I can imagine a private company providing that kind of service. But they would have to fund their future liabilities.

Socrates: Dude, Social Security funds its liabilities for years and could do so in perpetuity using slightly more optimistic assumptions. Anyway, if that's your problem, we can tinker a bit and solve it.

Libertarian: But Social Security can't have real assets...

Socrates: US Government Bonds aren't real assets? Would it bother you if the insurance company was 100% invested in US Government Bonds?

Former Libertarina, now anarcho-capitalist crazy: Beer funds! Repudiate the debt and give bondholders a share of Yellowstone!
...Expanded upon by R.J. Lehmann:
"Socrates: US Government Bonds aren't real assets? Would it bother you if the insurance company was 100% invested in US Government Bonds?"

In fact, most insurers are invested overwhelmingly in government bonds, and many invested solely in them.

I find the entire line of argument somewhat strange. Like most traditional pension systems, Social Security takes the form of an annuity, which is itself a form of insurance. Risk (in this case, the risk of outliving one's retirement savings) is transferred to a pool, and like most annuities, payouts then proceed from a given starting date until death.

In terms of long-term solvency, Social Security is not a particularly well-structured annuity plan, since the price is not rated according to the size of risk. If it were, then smokers would pay less than non-smokers, men pay less than women, etc. Although arguably, since payout adjustments are progressive with respect to income even without indexing, and the rich tend to live longer than the poor, that's at least one risk factor that is partially accounted for.

But that Social Security is a poorly structured annuity program doesn't mean it is NOT one. Most insurers, including life insurers who offer annuities, hedge against the risk of insolvency by way of reinsurance. The Social Security program's reinsurance is the American taxpayer...

PROGRESSIVE IS
Mad Max contrasts "liberal" and "social democratic" approaches to Social Security.
Pozen Pill
Brad DeLong, in Slate, on Pozen's ideas and what the Bush Administration may do with them.
Screwing the Very People Who Gave Him the "Mandate"
The Decembrist on the combined fiscal impact of Bush's SS and tax cut plans on the middle class.
5/4
Stanford Institute for Economic Policy Research
Audio and video of presentation by Peter Orszag and John Shoven.
Slashing Social Security: Bush Plan Cuts Benefits
Moving Ideas' page on the Bush Plan.
5/5
Let's Not Save Social Security
Mickey Kaus, writing in Slate, says keeping the option to slash Social Security deeper later this century is the top priority.
5/9
The Personal 'Lockbox'
John Fund of The Wall Street Journal proposes Treasury bill accounts.
Bush May Destroy Social Security, Not Fix It: John M. Berry
Bloomburg columnist on the ultimate political ramifications for Social Security implied by the rate of returns of progressive indexing.
The White House Mounts a Feeble Defense of Its Social Security Plans
Brad DeLong.
Give Us the Real Thing on Social Security
Will Wilkinson of the CATO Institute says Social Security is risky to its beneficiaries.
5/10
THE IMPACT OF THE PRESIDENT'S PROPOSAL
ON SOCIAL SECURITY SOLVENCY AND THE BUDGET

Jason Furman of The Center on Budget and Policy Priorities.
Index Fun
Matthew Yglesias in The American Prospect.
Progressive Price Indexing is Not Means-Testing -- It's Arbitrary
Peter Ferrara: Too Busy Being a Hack
The Decembrist.
5/11
Dems’ Plan
Stanley Kurtz of the National Review constructs a critique of Diamond-Orszag and Democratic stewardship thereof singularly lacking in, um, productivity.
5/12
Statement of C. Eugene Steuerle, Senior Fellow, Urban Institute, Codirector, Tax Policy Center, and Columnist, Tax Notes Magazine Testimony Before the House Committee on Ways and Means
Radio host Michael Medved's privatization meltdown
Media Matters coverage.
5/13
Statement on Social Security Reform
Brad DeLong testifies before the Democratic Policy Committee, followed by subsequent comment on the implications of assumptions of the distribution of returns from productivity for privatization in DeLong's blog by Bruce Webb:

From Michael Cain
"Is there a chance that, deep down, the Trustees realize that the portion of national income that goes to the capped wages and salary base for the SS taxes will be a shrinking one in the future? And that the "productivity" growth that they assume is actually that portion of the overall growth rate that will show up in that tax base?"

Well sure, but that is not the number they report in "productivity". The effect you mention would show up in other columns like Real Wage Differential. Productivity is the overall pie, the size of the slices depends on other factors. Lowballing the size of the pie because you know the people cutting the slices are rogues is to make a mockery out of the whole model.

We are talking about a spreadsheet. Intermediate Cost and Low Cost are nothing more than an Excel table. You change your initial assumptions and the changes ripple right through to the end. Productivity is just one assumption, though the driver, there are others and anyone if free to challenge them and show how they might offset productivity. But these tables are math and not psychology, they don't measure the evil that is in the hearts of men, they are not a scorecard on the Masters of Capitalism. They simply show that if you input a set of economic and demographic assumptions we can label A you get outcome X. If you input a different set of assumptions we label B you get outcome Y.

What you suggest here is that initial numbers are being distorted in an effort to hide the thuggery needed for Capital to extract all the gains of likely productivity over the next 75 years at the total expense of Workers. (Which was the outcome of the "No Economist Left Behind" challenge. You can save 6.5% stock returns with 1.6% productivity by putting 90% of America into perma-poverty). Well no thanks.

I assume that workers will extract some share (not necessarily a fair share) of the gains in productivity over the next years. Because despite the flaws both exhibit on a daily basis we still have some capital letter players called Democracy and Markets. And you can only game the latter so much before the former bites you in the ass.

Social Security insolvency requires one) that some future US government openly proclaim themselves to be thieves and liars and two) that corporate America will simply feel free to grind down American wages into the dirt. There are plenty of people who believe that, read any comment thread at dKos. But it is an uncomfortable starting position for privatizers. "Sure we will default on the bonds, and no you will never get a raise ever, but trust me with that 4% of your check"

You can only get to Social Security "crisis" by trashtalking the American economy and the whole concept of market wages. Ask the next privatizer you meet why he hates America so much.

Senate Democratic Policy Committee Hearing:"An Oversight Hearing on President Bush's Social Security Privatization Plan: Will You and Your Family Be Worse Off?"
5/16
"I Want My Safety Net"
"Why so many Americans aren't buying into Bush's Ownership Society" BusinessWeek cover story.
5/17
HEARING BEFORE THE SUBCOMMITTEE ON SOCIAL SECURITY OF THE COMMITTEE ON WAYS AND MEANS
U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED NINTH CONGRESS FIRST SESSION

5/19
Pozen Blasts Bush Privatization Plans
The Center for American Progress reports on Pozen's opposition to "carved-out" accounts accompanying progressive indexing.
5/20
SOCIAL SECURITY, WHEN “NEVER” IS DEFINED AS "2042"
Team Bush propaganda methods dissected at the blog BE-THINK.
5/22
No Old-Age Security in the Private Sector Either
Joseph Stiglitz on dismantling public pensions and subsidizing private ones.
5/25
What Is the Social Security Trust Fund, Anyway?
Economist Andrew Samwick:

Think of the Trust Fund as a line of credit that the Social Security system extends to the rest of the government. The balance in the Trust Fund is simply the current value--principal plus interest credited at the Treasury bond rate--of all the withdrawals that the rest of the government has made historically on that line of credit to pay for things other than Social Security. Its projected balance at the end of the year is $1.85 trillion. Under current law, that balance is projected to peak at $3.61 trillion in 2022 before declining to zero in 2041. During those 20 years, the Social Security system will be calling in the loans that it has made to the rest of the government.

Keeping track of the total amount outstanding on these loans is the accounting purpose of the Trust Fund balance. It also has a legal purpose. Specifically, as long as the the Trust Fund balance is positive, then the system can pay the benefits implied by current law. It would require the Congress and the President to execute a new law to interrupt this process. When the Trust Fund hits zero, then it would take a new law to get full benefits paid on time--they would be paid only as tax revenues flow into the system.
Options for Social Security: Budgetary and Distributional Impacts[PDF]
CBO testimony before the Senate Finance Committee.
Retirement Income: The Crucial Role of Social Security
"An EPI news conference
Wednesday, May 25, 2005, 10 AM (ET)
National Press Club, Washington, D.C.

Co-authors Christian Weller and Edward N. Wolff discuss their new book, Retirement Income: The Crucial Role of Social Security
5/30
MORE MATH PROBLEMS AT THE POST
Dean Baker responds to a Washington Post editorial.
5/31
Privatization's Unintelligent Design
Greg Anrig, Jr. of TPMCafe on the "dynamic scoring" projections of Feldstein and Samwick.

Social Security Meta-Archive: 2005

Social Security Meta-Archive: April 2005

[Part of the Social Security Meta-Archive: 2005]

Social Security Meta-Archive: March 2005

April 2005
What is Progressive Price Indexing?[PDF]
Alicia Munnell of the Center for Retirement Research at Boston College.
4/1
A Proper April Fools Day!
Brad DeLong responds to Donald Luskin.
Stepford Town Meetings
EJ Dionne on Bush's employment of Secret Service as pep rally bouncers.
4/2
Asset Returns and Economic Growth
DeLong links to Mankiw's response to his paper with Baker and Krugman.
The Need for Social Insurance
Mark Thoma.
4/4
Prefunding and Private Accounts
DeLong quotes Andrew Samwick quoting Alex Tabarrok and responds.
4/5
Rove Says Social Security Overhaul Must Have Private Accounts
Bloomberg coverage.
4/6
The Commander Is on Deck
DeLong:"Gene Sperling issues marching orders on Social Security reform"
4/7
April Fools Day Continues!
DeLong:

Donald Luskin:
NRO Financial April 4, 2005: The actuaries, as noted earlier, assume about 1.9 percent annual real GDP growth over the coming 75 years.... At the same time, the actuaries assume 6.5 percent annual real total returns to stocks.... What’s the complaint, then? Where’s the inconsistency?..
Donald Luskin:
NRO Financial February 2, 2005: Krugman does make one good point... stock returns in the neighborhood of 6.5 percent will not be possible over the coming 75 years if economic growth is as low as the 1.9 percent rate used by the actuaries of the Social Security Administration in their solvency estimates...
There is one thing that puzzles me: Is Luskin genuinely too dumb to remember what he wrote two months ago? Or does he just think that National Review's readers and editors are too dumb to remember what he wrote two months ago?
Mark Thoma in comment:
Your reponse shows an admirable amount of restraint given the baseless hatchet job Luskin tried to do on your paper with Baker and Krugman, and the uncalled for personal attacks. He even pulled out the "Brad DeLong (the former Clinton administration official who is the self-confessed most-Marxist-leaning economist on the U.C. Berkeley economics faculty" which shows you just how scared you guys have him. Too bad he doesn't understand the point about social arrangements and modes of production you are trying to make in the post he links, and that what you write there is critical of, not supportive of, what most people think of as Marxian tenets.

A more honest link would have been to the comments on the transformation problem where Marxists are not happy with you...
George W. Bush's $1.7 Trillion Grand Larceny Spree
DeLong quotes Max Sawicky.
The Bush Administration Clown Show Continues...
DeLong articulates the implications of one of White House spokesman Chuck Blahous's talking points:
If you go to the real Republican economists, you will find the argument going something like this, where I have turned the frankness-and-blunt-speaking-o-meter up from its usual level of 3 to the Spinal Tap level of 11:

  1. Currently, the U.S. government is running a Social Security surplus--taking in more in Social Security taxes than it spends in benefits.

  2. When the baby-boom generation retires, the U.S. government is going to be spending more on Social Security than it will take in in taxes--so the government is going to have to borrow a lot of money in order to cover the deficit.

  3. The government will only be able to borrow if creditors think (i) the debt is not already too high and (ii) the government will have the will to levy taxes to pay us off when our bonds come due.

  4. Thus it's important that now--when Social Security is in surplus--that the government be not running up but running down the debt.

  5. If the government takes the current Social Security surplus and spends it--doesn't run a big current surplus and buy back debt now--then it will be unable to borrow when the baby-boom retirement payments come do because the debt level from which we will then start will be too high.

  6. The U.S. government--especially Frist, Hastert, Delay, and Bush--have a demonstrated incapability to not spend the Social Security surplus: there is no a snowball's chance in hell that a government run by them will buy back debt.

  7. So we are in big trouble.

  8. If only we could keep Frist, Hastert, Delay, and Bush from knowing that they have a Social Security surplus to spend, they would be forced to raise taxes or cut spending, and then the government would be able to borrow in the future to meet its Social Security obligations to the baby boomers.

  9. So let's set up private accounts. That will cut government revenues now--and so eliminate the Social Security surplus. Frist, Hastert, Delay, and Bush will be forced into fiscal sanity, and so we'll have a lower debt when we really do have to borrow in the future. And we won't have to borrow any more in the future as a result of our private accounts plan because we will cut normal benefits by an amount that is in present value equal to the amount that we're diverting to private accounts.
"Battlepanda" in comment:
Alan Greenspan in '83: Let me put this cookie away for you so you can have it for dessert later instead of ruining your dinner.

Al Gore in 2000: I wouldn't keep the cookie jar right out in plain sight if I were you.

George Bush in 2005: Oh uh! Somebody ate your cookies! Or perhaps your cookies never existed in the first place.

American people: Why preznit hand in cookie jar?

GB: To make sure this terrible terrible thing never happens again, next time we're going to keep the cookies in a jar with your name on it!

American people: (...)
4/8
The Bush Administration Social Security Clown Show Continues
DeLong links to Judd Legum and resumes bashing Blahous.
4/9
Losing the Social Security Battle
Stephen Moore, longtime libertarian think-tank operative, lays longterm plans for the destruction of Social Security in the Weekly Standard:
Finally, to put the Democratic obstructionists in an especially uncomfortable position, it would make sense to start proposing fallback positions that at least get personal accounts started. One idea would be to defuse the fatuous "risky stock market" argument by simply offering a plan where workers can have a private account, but are permitted to purchase only Treasury bills. Take the stock market out of the equation and there is not even the odor of risk with personal accounts.
THE COMMONWEAL
STRIKES BACK

Max Sawicky responds:
But . . . but . . . I thought Government bonds were "just IOUs"?!?

Steve and his boyz are in it for the long haul. Let's back up and see where we are.

At the least, the privatizers have helped to back the public into the Dems' position: there is a problem but not a crisis. So we are still ripe for misguided efforts to close deficits that are decades in the future.
4/14
A Note: Returns, Growth, and Financing Social Insurance
DeLong follows up on his paper on asset returns with Krugman and Baker.
4/15
"Asset Returns and Economic Growth": The Econ 1 Version
DeLong continues...
4/19
The focus groups speaketh
The Carpetbagger Report on "privatization" morphing into "personal accounts" morphing into "modernization."
Live Blogging from Heritage, III: The Demographics of the International Pension Situation
"This session is led by Richard Jackson, Director, Global Aging Initiative at the Center for Strategic and International Studies (CSIS). He's going to put the SS reform debate here in international perspective..."
4/22
Jackie Calmes on Chuck Blahous
DeLong links to Wall Street Journal coverage and comments:
A Social Security reform plan that does not preserve a defined benefit component, does not offer a good deal to the non-rich choosing private accounts, and does not boost national savings is not a Social Security reform plan worth proposing. There are no reasons for anybody to support this thing.
4/24
Matt Miller: Why Are Republican Economists Averse to Raising National Savings?
DeLong links to a discussion of the White House refusal to pay for private accounts.
4/26
FDR's Card Trick
A conservative attack on Social Security by William Voegeli of the Clairmont Institute writing at OpinionJournal.com
Social Security Reform
Peter Orszag testifies before the Senate Finance Committee.
Personal Accounts Are Not A Certainty
Washington Post coverage.
4/28
Press Conference of the President
Remarks on Social Security:

Congress also needs to address the challenges facing Social Security. I've traveled the country to talk with the American people. They understand that Social Security is headed for serious financial trouble, and they expect their leaders in Washington to address the problem.

Social Security worked fine during the last century, but the math has changed. A generation of baby boomers is getting ready to retire. I happen to be one of them. Today there are about 40 million retirees receiving benefits; by the time all the baby boomers have retired, there will be more than 72 million retirees drawing Social Security benefits. Baby boomers will be living longer and collecting benefits over long retirements than previous generations. And Congress has ensured that their benefits will rise faster than the rate of inflation.

In other words, there's a lot of us getting ready to retire who will be living longer and receiving greater benefits than the previous generation. And to compound the problem, there are fewer people paying into the system. In 1950, there were 16 workers for every beneficiary; today there are 3.3 workers for every beneficiary; soon there will be two workers for every beneficiary.

These changes have put Social Security on the path to bankruptcy. When the baby boomers start retiring in three years, Social Security will start heading toward the red. In 2017, the system will start paying out more in benefits than it collects in payroll taxes. Every year after that the shortfall will get worse, and by 2041, Social Security will be bankrupt.

Franklin Roosevelt did a wonderful thing when he created Social Security. The system has meant a lot for a lot of people. Social Security has provided a safety net that has provided dignity and peace of mind for millions of Americans in their retirement. Yet there's a hole in the safety net because Congresses have made promises it cannot keep for a younger generation.

As we fix Social Security, some things won't change: Seniors and people with disabilities will get their checks; all Americans born before 1950 will receive the full benefits.

Our duty to save Social Security begins with making the system permanently solvent, but our duty does not end there. We also have a responsibility to improve Social Security, by directing extra help to those most in need and by making it a better deal for younger workers. Now, as Congress begins work on legislation, we must be guided by three goals. First, millions of Americans depend on Social Security checks as a primary source of retirement income, so we must keep this promise to future retirees, as well. As a matter of fairness, I propose that future generations receive benefits equal to or greater than the benefits today's seniors get.

Secondly, I believe a reform system should protect those who depend on Social Security the most. So I propose a Social Security system in the future where benefits for low-income workers will grow faster than benefits for people who are better off. By providing more generous benefits for low-income retirees, we'll make this commitment: If you work hard and pay into Social Security your entire life, you will not retire into poverty. This reform would solve most of the funding challenges facing Social Security. A variety of options are available to solve the rest of the problem, and I will work with Congress on any good-faith proposal that does not raise the payroll tax rate or harm our economy. I know we can find a solution to the financial problems of Social Security that is sensible, permanent, and fair.

Third, any reform of Social Security must replace the empty promises being made to younger workers with real assets, real money. I believe the best way to achieve this goal is to give younger workers the option, the opportunity if they so choose, of putting a portion of their payroll taxes into a voluntary personal retirement account. Because this money is saved and invested, younger workers would have the opportunity to receive a higher rate of return on their money than the current Social Security system can provide.

The money from a voluntary personal retirement account would supplement the check one receives from Social Security. In a reformed Social Security system, voluntary personal retirement accounts would offer workers a number of investment options that are simple and easy to understand. I know some Americans have reservations about investing in the stock market, so I propose that one investment option consist entirely of Treasury bonds, which are backed by the full faith and credit of the United States government.

Options like this will make voluntary personal retirement accounts a safer investment that will allow an American to build a nest egg that he or she can pass on to whomever he or she chooses. Americans who would choose not to save in a personal account would still be able to count on a Social Security check equal to or higher than the benefits of today's seniors.

In the coming days and weeks, I will work with both the House and the Senate as they take the next steps in the legislative process. I'm willing to listen to any good idea from either party.

Too often, the temptation in Washington is to look at a major issue only in terms of whether it gives one political party an advantage over the other. Social Security is too important for "politics as usual." We have a shared responsibility to fix Social Security and make the system better; to keep seniors out of poverty and expand ownership for people of every background. And when we do, Republicans and Democrats will be able to stand together and take credit for doing what is right for our children and our grandchildren.
The Bush Social Security Clown Show Continues
DeLong responds.
4/29
It's the Circular Firing Squad of Flying Attack Monkeys!
More from DeLong in response to the press conference.
HOW WOULD THE PRESIDENT’S NEW SOCIAL SECURITY PROPOSALS
AFFECT MIDDLE-CLASS WORKERS AND SOCIAL SECURITY SOLVENCY?

Jason Furman of the Center on Budget and Policy Priorities.
INDEX THIS
Max Sawicky on the implications of progressive indexing.
Has Bush gone Commie?
The conservative blogger ProfessorBainbridge riffs off of the Voegli attack on Social Security to rub his hands in glee at the thought of subverting the "universalist" principle behind the implementation of Social Security in the US.
NOT DEMOGRAPHY
Max Sawicky links to a report by EPI's Josh Bivens.

Social Security Meta-Archive: May 2005