The Daily Sandwich

"We have to learn the lesson that intellectual honesty is fundamental for everything we cherish." -Sir Karl Popper

Location: Boston, Massachusetts, United States


Monday, January 17, 2005

Krugman interview with Rolling Stone

Here's a brief and very well-done piece in which economist Paul Krugman answers common questions about the Social Security system-- and why privatization is such a big deal anyway. A must-read. Here's an excerpt:

But what happens if [the SS trust fund] doesn't [last]?

Even if the trust fund does run out, Social Security will still be able to pay eighty percent of promised benefits. The actual shortfall would be a pretty small part of the federal budget, quite easily made up from other sources. Once the whole baby-boomer generation is into the retirement pool, Social Security's share of the gross domestic product will only increase by about two percent. Well, President Bush's tax cuts are more than two percent of GDP -- and they're happening right now, not fifty years from now. So the idea that there's this Social Security thing that is a huge problem is just wrong.