ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, December 27, 1996 TAG: 9612270024
SECTION: EDITORIAL PAGE: A-10 EDITION: METRO
SOURCE: BRIAN D. WOERNER
I FEEL compelled to respond to James K. Galbraith's irresponsible column, "Don't whack Social Security benefits'' (Commentary page, Dec. 15). Though the entire column is littered with inconsistencies and unsupported assertions, I feel particularly compelled to address three points.
First, Galbraith amazingly asserts that "there is no Social Security crisis." It is not surprising that he cites no evidence to support this statement, because nearly every reputable economist agrees that, beginning in approximately 2010, the Social Security system will begin paying out more money than it takes in. By the year 2030, the Social Security system will be trillions of dollars in debt, and the only solution will be to either drastically cut benefits or more than double the current level of Social Security taxation. (Most people already pay approximately 15 percent of their income in Social Security taxes. Only half of that is reported on pay stubs because the other half is considered an ``employer contribution.'')
Second, Galbraith concedes the central issue in the debate by stating: ``True, there is an upward bias in the cost-of-living calculations.'' But he argues that we should continue to use an erroneous measure for the consumer price index (CPI) because it leads to the policy outcome that he supports - higher benefits. Indeed, he seems astonished that any policy-making body such as the Federal Reserve would actually prefer to use honest statistics that might cause it to alter current policies.
Finally, in a statement that insults the very group he claims to defend, Galbraith asserts that ``being older, they are not aggressive shoppers" who are capable of seeking out the best quality or value in products. One need only look at the plethora of senior-citizen discounts available to realize that merchants regard seniors as among those most likely to demand value in the marketplace.
The impending bankruptcy of the Social Security system is perhaps the most important policy issue facing our country today. Failure to act promptly to resolve this problem will result in an unprecedented fiscal crisis early in the next century.
However, if we act now, the system could be made solvent for the foreseeable future through a handful of very modest steps: fixing the erroneous CPI, gradually raising the retirement age to 70, and making benefits taxable for those in high-income brackets.
Solving this problem will require small sacrifices shared across all of society. It is important that we solve this problem now so that each of us can plan for retirement using realistic assumptions. That a supposed public-affairs expert such as Galbraith would argue that we should ignore the problem and do nothing is the height of irresponsibility.
Brian D. Woerner lives in Blacksburg.
LENGTH: Medium: 58 linesby CNB