The following was originally published at Beat The Press [1]
Confused readers may wonder based on its lead editorial [2] complaining that supporters of Social Security: "pursue a maddening strategy of minimizing the existence of any problem and accusing those who seek solutions of trying to destroy Social Security (emphasis added)."
The piece begins by telling readers that: "THIS YEAR, for the first time since 1983, Social Security will pay out more in benefits [3] than it receives from payroll taxes -- $41 billion. This development is not an emergency, but it is a warning sign (emphasis in original)." It certainly is a warning sign. The falloff in Social Security tax revenue is a warning that the economy is seriously depressed due to the collapse of the housing bubble. Double digit unemployment leads to all sorts of problems, including the strains that it places on pension funds like Social Security.
In a sane newspaper the next sentence would be pointing out the urgent need to get back to full employment. Instead the Post tells readers:
Too soon, this year's anomaly will become the norm. By 2037, all the Social Security reserves will have been drained and the income flowing into the program will only be enough to pay 75 percent of scheduled benefits. If that sounds tolerable, consider that two-thirds of seniors rely on Social Security as their main source of income. The average annual benefit [4] is $14,000. Those who care most about avoiding such painful cuts ought to be working on ways to bolster the program's finances -- and soon, when the necessary changes will be less drastic than if action is postponed.
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