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On my blog today I have a piece on a radical and very disturbing proposal from the CBO to change Social Security. The story originally appeared on MarketWatch.
There is a tinge of politics, so I am not posting it directly, but if Social Security is a concern, you might want to take a look on Quinnscommentary.net
The link goes directly to the article
We’re approaching a fork in the road with Social Security, and like it or not, we’ll have to choose from one—or more likely, a combination—of the following:
Given the country’s current mood for tearing down the institutions that built the middle class our parents and grandparents relied on, I suspect we’re heading toward a mix of:
The last things you want are using general revenue, means testing, private accounts. None of that is necessary. There is nothing wrong with the system as it is.
We just need to recognize that demographic changes require adjustment of funding, that is taxes, and it should be automatic each year just like the COLA. No action by Congress required. Just follow actuary funding needs.
If such a proposal were actually implemented, there would be a veritable tidal wave of so-called “grey” divorce. Marriage would become a $1,000+ per month luxury that a large majority of retirees could not afford. I’m sure there would be a host of other (unintended, at least I hope unintended!) consequences as well.
Although this proposal is scary, only something drastic will save SS.