Monday, May 02, 2005

The Next Liberal Attack on Social Security

Former Clinton Labor Secretary Robert Reich is out of the closet with the next line of attack on Social Security reform.

President Bush just wants to avoid the smart move of creating HillaryCare, Reich says. That's why, Reich suggests, Bush continues to push Social Security reform so long after Harry Reid and Ben Chandler have announced that they don't want it. What is curious to me is why the mainstream media, nearly unanimous in calling the proposed change that really isn't a cut in benefits a cut, has missed another point. Progressive Price Indexing isn't my favorite plan, but it is significantly better than the Democrats' plan. The change from wage indexing to price indexing is not necessary and, obviously, gives the left the opportunity to scream "cuts." But it creates a reduction in the rate of increase in benefits for about 70% of recipients. The Democrats plan -- doing nothing (oh, except whining) -- would mean an actual 28% cut in baseline benefits for 100% of recipients, legally mandated for when the well runs dry.

Here is a pretty good explanation of what is happening.