Wednesday, November 28, 2007

Social Security Obsession

Krugman argues that Social Security is in better shape than the rest of the government.

Social Security fades to insignificance in any realistic discussion of entitlements problems. Medicare’s unfunded liabilities, as estimated in the trustees’ reports, are seven times those of Social Security. The unfunded liabilities of Medicare Part D alone are twice those of Social Security.

If you’re seriously worried about America’s long-run fiscal prospects, then, you should talk a lot about the general fund deficit and the problem of rising health care costs, and hardly at all about Social Security.
He's right.

1 comment:

  1. Unfortunately some Democratic presidential candidates have bought into the Republican frame that Social Security is in crisis and something must be done. Actually, Social Security is solvent through 2046.