Comments on: Social Security, Now Less Than Ever

By: monkyboy

monkyboy — Thu, 12 May 2005 21:12:00 +0000

Hehe, I was just reading “Will in the World”

Bush has increased the size of the federal budget faster than any president in the last 50 years. Don’t confuse talk with reality.

Claiming Bush as some kind of libertarian hero is liking a cop claiming victory because he got a serial killer to whisper “I love you” as he guts his victims.

By: Peter

Peter — Thu, 12 May 2005 20:14:00 +0000

With the possible exception of NAMBLA, it’s hard to imagine a political group thats been less effective than CATO and the libertarians these last 4 years,

Hard to imagine a group “less effective than CATO”?

Hmmmm… is that why you have the President using nearly every waking moment to stress the benefits of private accounts, SS reform is now a regular topic on the nightly on the news, and Congress is promising to get a bill together this summer?

And that’s just one issue.

Keep trying MB… you’re bound to get something right one of these days. You know what they say about a million monkeys typing and Shakespeare.

By: Gareth

Gareth — Thu, 12 May 2005 20:04:00 +0000

Will, I am prepared to concede that it is harder to keep a DB plan solvent, if you will (finally) concede that, from the point of view of the individual, it has advantages that a DC plan with the same expected return does not.

Buying an annuity before retirement (particulary in an unregulated market) does not spread the risks a DB plan based on best or average earnings does.

What about this proposal? We freeze SS contribution rates, and give a trustee board discretion to fiddle with benefits if necessary. The right stops talking about beer funds, accepts that the Trust Fund is a legitimate claim on future general revenue, and further accepts that the general fund needs to be brought into balance, by tax increases if need be.

By: monkyboy

monkyboy — Thu, 12 May 2005 18:37:00 +0000

With the possible exception of NAMBLA, it’s hard to imagine a political group thats been less effective than CATO and the libertarians these last 4 years, and I think Will’s attitude shows us why.

Pensions are failing because companies are failing. The very companies the LINOs want to put our SS in. Will the last libertarian leaving reality please turn out the lights(powered by government subsidized electricity)?.

By: Will Wilkinson

Will Wilkinson — Thu, 12 May 2005 17:54:00 +0000

What are people going to do? People, who do not like having their taxes raised, will punish politicians who raise them. That’s what people will do. So the power to raise payroll taxes is, yes, theoretical. I, for one, will die in the last ditch before my payroll taxes are raised. More likely is that people are going to cut benefits for other, richer people who do not need “old age insurance.” A la Pozen. So a partial “default” on the defined benefit promise is what people war going to do.

By: Jake McGuire

Jake McGuire — Thu, 12 May 2005 16:58:00 +0000

But a big part of the reason that United is having trouble paying the benefits it has defined is competitive pressure of a sort that the US Government does not really face. United needs people to keep buying tickets for more than it costs them to provide, and cannot ensure that this happens as long as Southwest exists. It doesn’t have the power to will customers into existence.

While the US Government doesn’t have absolute power to do so, it has at least the theoretical ability to raise payroll taxes and restore solvency. What are people going to do, say “hell no, I’m not paying” and move to Australia?

By: Will Wilkinson

Will Wilkinson — Thu, 12 May 2005 16:17:00 +0000

Nicholas, I meant that defined benefits plans are having a very hard time paying the benefits they have defined. That’s the problem with them.

By: Rashad

Rashad — Thu, 12 May 2005 16:11:00 +0000

just one more jab, I’m pretty sure Matt’s point about governments not going out of business was that governments don’t go bankrupt, not that they don’t change policies or administrations as you interpreted it.

By: GAB

GAB — Thu, 12 May 2005 15:10:00 +0000

And you can buy that annuity from AIG, a triple-A rated insurer. Oh wait, a single-A rated insurer…

By: KipEsquire

KipEsquire — Thu, 12 May 2005 11:55:00 +0000

I’m also seeing frighteningly little about the role the unions had in creating the DB pension debacle.