When Columnists Attack

Paul Krugman has launched a completely over-the-top attack on Barack Obama for saying that he would raise Social Security taxes. In fact he called Obama both a "sucker" and a "fool."

Lately, Barack Obama has been saying that major action is needed to avert what he keeps calling a “crisis” in Social Security — most recently in an interview with The National Journal. Progressives who fought hard and successfully against the Bush administration’s attempt to panic America into privatizing the New Deal’s crown jewel are outraged, and rightly so.

But Mr. Obama’s Social Security mistake was, in fact, exactly what you’d expect from a candidate who promises to transcend partisanship in an age when that’s neither possible nor desirable…..

…..We all wish that American politics weren’t so bitter and partisan. But if you try to find common ground where none exists — which is the case for many issues today — you end up being played for a fool. And that’s what has just happened to Mr. Obama.

You can go read why Krugman does not believe there is a problem with Social Security. Then you can look at the annual Trustees Report from the Social Security Administration.

The financial condition of the Social Security and Medicare programs remains problematic; we believe their currently projected long run growth rates are not sustainable under current financing arrangements. Social Security's current annual surpluses of tax income over expenditures will soon begin to decline and then turn into rapidly growing deficits as the baby boom generation retires. Medicare's financial status is even worse. Medicare's Hospital Insurance (HI) Trust Fund is already expected to pay out more in hospital benefits this year than it receives in taxes and other dedicated revenues. The growing annual deficits in both programs are projected to exhaust HI reserves in 2019 and Social Security reserves in 2041. In addition, the Medicare Supplementary Medical Insurance (SMI) Trust Fund that pays for physician services and the new prescription drug benefit will continue to require general revenue financing and charges on beneficiaries that grow faster than the economy and beneficiary incomes over time.

Then you could look at the history of problems, bi-partisan commissions and such that can be found here. For instance the report of the Social Security Advisory Panel for 1994-1996 - when Bill Clinton was in office:

While the Council has not found any short-term financing problems with the Old-Age, Survivors, and Disability (OASDI) program, there are serious problems in the long run. Because of the time required for workers to prepare for their retirement, and the greater fairness of gradual changes, even long-run problems require attention in the near term.

But Krugman is saying all that is wrong. He knows better.

And he calls Obama a fool?

Other Links to this Post

1. Blue Crab Boulevard » Ruth Marcus Dismantles Paul Krugman — Wednesday, 21 November , 2007 @ 7:36 am