What Ails
16 November 2007
The Editor, New York Times
229 West 43rd St.
New York, NY 10036
To the Editor:
Paul Krugman asserts that Social Security faces no financial crisis ("Played for a Sucker," November 16). His only evidence? Peter Orszag's and Philip Ellis's statement that the largest fiscal problem confronting Uncle Sam is the projected growth in health-care costs.
Mr. Krugman's logic is as compelling as would be that of a physician who concludes that tuberculosis isn't a serious illness because pancreatic cancer is even more lethal.
In 2005 testimony before Congress, the eminent economist Thomas Saving - appointed by President Clinton to serve as a Public Trustee of the Social Security and Medicare Trust Funds - acknowledged that Medicare and Medicaid are in worse financial shape than is Social Security. But Mr. Saving also warned that Social Security's financial condition is precarious. Speaking for the Trustees, Mr. Saving said that action to fix Social Security's coming insolvency "should not be deferred any longer than necessary for due deliberation and decision."*
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
* http://mysocialsecurity.org/main/news.php?ItemsID=115
The Editor, New York Times
229 West 43rd St.
New York, NY 10036
To the Editor:
Paul Krugman asserts that Social Security faces no financial crisis ("Played for a Sucker," November 16). His only evidence? Peter Orszag's and Philip Ellis's statement that the largest fiscal problem confronting Uncle Sam is the projected growth in health-care costs.
Mr. Krugman's logic is as compelling as would be that of a physician who concludes that tuberculosis isn't a serious illness because pancreatic cancer is even more lethal.
In 2005 testimony before Congress, the eminent economist Thomas Saving - appointed by President Clinton to serve as a Public Trustee of the Social Security and Medicare Trust Funds - acknowledged that Medicare and Medicaid are in worse financial shape than is Social Security. But Mr. Saving also warned that Social Security's financial condition is precarious. Speaking for the Trustees, Mr. Saving said that action to fix Social Security's coming insolvency "should not be deferred any longer than necessary for due deliberation and decision."*
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
* http://mysocialsecurity.org/main/news.php?ItemsID=115
Posted by Don Boudreaux on
Sunday May 4, 2008 at 7:51pm