Rolling Stone on the Non-Social Security Criisis

They interview Krugman to fact-check W.

Actually very clear and informative.

http://tinyurl.com/5pwlm

The Economic Policy Institute also referencing economists at Goldman
Sach also fact check the likely replacement plan in more clear writing
and charts.

http://www.epinet.org/content.cfm/webfeatures_snapshots_12222004

Their conclusion:  the appeal of private accounts is being used to
cover deep cuts even with the return from overly  optimistic private
accounts.  Economists at Goldman Sachs project total benefits
including the private accounts would be cut 42% because the personal
accounts would only make up half what the new plan is projecting.

Goldman Sachs "economists have estimated a more realistic
risk-adjusted return of 2.7% on personal accounts, far less than the
4.6% used by the commission.  They find that a medium income,
one-earner couple in 2075 would receive $600 a month in annuity income
from a personal saving account-barely half as much as the $1,167
projected by the commission.  When added to the $1,156 guaranteed
benefit proposed by the President's commission, that generates a
monthly total of $1,755â42% less than the $3,009 anticipated under
Social Security current law.  That's a much larger reduction than the
23% cut under the commission's overly optimistic assumptions."

Gary Denton
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