Deal Me In George

Haven't talked much about Social Security lately but Lord knows everyone else has. Which is a bit strange don't you think? I mean the whole Social Security debate is really like a bunch of people on Let's Make A Deal all arguing about what's behind door number 3. Who knows? Everyone's got an opinion but no one seems to know the details. Well I figure the only way I'm ever going to get a clear explanation is by going straight to the top.

"Hello Mr. President. Can you please explain to the American people just what your plan for Social Security is?"

"It's all about ownership and people taking responsibilty for their own futures."

"Yes I see but what will it cost?"

"What's the cost of doing nothing?"

"You see that's my point. What IS the cost of doing nothing?"

"The cost is a Social Security system that's bankrupt and unable to meet it's obligations."

"Do you mean that at some point Social Security is going to stop paying benefits?"

"We will not break our trust with the American people."

"Huh? Does that mean you are going to reduce benefits?"

"Young workers will do far better with Personal Savings Accounts than they would under the current system."

"How much are you going to reduce benefits?"

"Personal Savings Account will give many young workers a real opportunity for wealth creation."

"Yes, but by how much are you going to reduce benefits?"

"Under our plan all the money you earn in your Personal Saving Account is yours. You own it and the government cannot touch it."

"Yes, but the benefits. How much will they be cut....Oh, never mind."

"We need to move to an ownership society."

"As opposed to a leasehold society, I suppose. Well let's pretend for a moment that I know what you mean by that. Some say that under your plan benefits will need to be cut by about 55% in order to balance the books, and others say that the real purpose behind your reforms is to gradually abolish the Social Security System all together. Would you care to comment on that?"

"No one over the age of 55 will be affected by my proposal nor see any changes to the benefits they are receiving now or plan to receive in the future."

"Thank you for your clarification Mr. President, and let me just say that I happen to agree with you that younger workers need to save more for their retirements. I'm not sure if gutting Social Security is the best way to achieve that goal, but if I were a twenty-something just starting out I'd certainly be in favor of Personal Savings Accounts. What we don't know, of course, and what you won't tell us, is how much safety net will be left forty years down the road or even if our PSA's will be all the net we get.

On the other hand maybe it doesn't matter because unless these twenty-somethings don't plan on getting sick or old when they retire, their medical costs are going to eat up any money they may have managed to set aside. Let's face it, with costs rising the way they are now that 50, 60 or 70 thousand dollar hospital bill you might get today will seem pretty cheap forty years from now when that same stay could run into the tens of millions. And that's not even accounting for the monthly drug bills, lab bills, long term care, it just goes on and on."

"Which is why we passed our Health Savings Accounts legislation back in 2003."

"You think the HSA's will cover it?"

"The important thing is that workers will have a choice. They can either choose to get the drugs and other treatments, or they can choose to drop dead. That's not a decision the government should make."

"Well thanks again, Mr. President. It's been terrible talking to you."

"Anytime."