In case you didn't already understand the details of his plan, the president is clarifying things very clearly with explanations like the following:
__________________________________________________________
Q -- (I want to) really understand how is it the new plan is going to fix that problem (the "notch" issue)?
THE PRESIDENT:
Because the -- all which is on the table begins to address the big cost drivers. For example, how benefits are calculate, for example, is on the table; whether or not benefits rise based upon wage increases or price increases. There's a series of parts of the formula that are being considered. And when you couple that, those different cost drivers, affecting those -- changing those with personal accounts, the idea is to get what has been promised more likely to be -- or closer delivered to what has been promised.
Does that make any sense to you? It's kind of muddled. Look, there's a series of things that cause the -- like, for example, benefits are calculated based upon the increase of wages, as opposed to the increase of prices. Some have suggested that we calculate -- the benefits will rise based upon inflation, as opposed to wage increases. There is a reform that would help solve the red if that were put into effect. In other words, how fast benefits grow, how fast the promised benefits grow, if those -- if that growth is affected, it will help on the red.
Okay, better? I'll keep working on it. (Laughter.)
__________________________________________________________
Note: There is a video of this speech somewhere that I have not been able to find. If you have a link to it, please post to comments.
Thursday, February 10, 2005
Subscribe to:
Post Comments (Atom)
1 comment:
I understand what he is saying... how shall payments be indexed, against salary, inflation, cost of living? However, however he says it, he begs the question: what is the fair way to index the payments... as opposed to holding the costs down. I mean, if you want to hold the costs down, just keep taking all the SS money out and leave nothing.
As to using private accounts: again, he says results should meet expectations... he's artifically raised expectations (why shouldn't you be rich when you retire when you've been poor all your life?)
It is a bit of a silly thing to have George Bush, man with the silver spoon, fixing social security! Which is why his plan has zero intersection with reality.
But instead of just managing the job, he calls it a crisis, panics the people, divides the country in yet another direction (age/generations) and fucks it up.
BTW, have you noticed that the 300 billion medicare expansion bill is now up to 1 trillion dollars and growing fast?) Past at 300 billion, the real cost of 450 billion hidden, and the real real cost of 1 trillion, well, there's even more on the way.
Meantime, don't watch that, be scared and paniced and watch SS.
Post a Comment