Home
In this issue
April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review Jan. 14, 2005 / 4 Shevat, 5765

Index retirement age or pay for it in 2006

By Dick Morris


Printer Friendly Version
Email this article


http://www.JewishWorldReview.com | For President Bush to succeed in his bold attempt to reform Social Security, he needs to realize that while the nation is ambivalent on his proposal to permit the investment of Social Security taxes by individuals it is deeply convinced, by years of publicity, on the need to do something to stop the system from going broke.


This fear of failure is the key element in the reaction of American voters to any attempt to fix Social Security. Fear of no retirement income is a key and vital element in our political construct and must not be taken lightly. While the president's priority is to allow private investment, his constituents expect restructuring to avert bankruptcy.


That leaves three ways to protect Social Security in the years to come: raise taxes, cut benefits or rely on increased revenues in private accounts as a result of the partial privatization. Supply-side conservatives in the White House are doubtless going to push the third option.


But Americans won't buy it. They may be willing to gamble that the federal budget deficit will go away as a rising tide lifts all boats, but they are not going to bet their retirement on it. The administration cannot have its cake and eat it, too. It cannot privatize Social Security and then cite the hoped for increased revenues as the way to prevent the system from going bankrupt. If it tries to do that, it will give the Democrats the best of all possible issues for the 2006 midterm elections.


We all know that Bush will not raise taxes, least of all the Social Security tax, which is the most regressive of all federal levies. So he has to cut. While he can likely win the debate about how to privatize some of Social Security, he will find himself mired in the debate about how to cut benefits instead. Democrats will mix their issues and blame the Bush tax cuts for the reductions in Social Security benefits and will have a field day with the issue.

Donate to JWR


The history of presidential initiatives' being sidetracked from their main objectives is extensive. As first lady, Sen. Hillary Clinton (D-N.Y.) first wanted to cover the uninsured. Her husband wanted to cut the cost of healthcare. But they ended up debating physician choice instead. When Clinton proposed his economic stimulus package, he found himself debating the merits of paying for swimming pools and midnight basketball.


Bush cannot avoid the central question: He must find a way to cut Social Security benefits for future retirees without undermining his political support.


The answer, as I have mentioned before in this space, is to index retirement age to life expectancy. An outright increase in the retirement age will evoke howls of protest, but linking it to life span will seem appropriate and acceptable to most Americans. After all, if medical science can raise the current life expectancy of 77 years to 100 in the next decades, are we going to have to fund 45 years of retirement? When will it stop?


As we live longer, we stay fit and vital longer. It is appropriate that our work lives extend longer. Socialist countries throughout the world love to lower retirement ages to make people prematurely dependent on the government. But we should move in the opposite direction. In the long run, indexing retirement to life expectancy will yield enormous revenues to the system, far more than a one-shot increase in the age in the current legislative cycle.


The alternative — basing Social Security benefit increases on cost-of-living increases rather than wage increases — smacks of making people retire on less and is likely to be much less politically acceptable than indexing the retirement age.


Bush needs to proceed with care on this issue. He is gutsy for tackling it in the first place, and he must make sure not to step on any land mines in the process.

Every weekday JewishWorldReview.com publishes what many in in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.



JWR contributor Dick Morris is author, most recently, of "Because He Could". (ClickHERE to purchase. Sales help fund JWR.) Comment by clicking here.



Dick Morris Archives


© 2005, Dick Morris