Thompson sounding a little weak on SS. No specific steps except PAs. He is suggesting linking COLAs to inflation. The real problem is that SS is structurally unsound. It is a pay as you go system. Starting in 2017, SS will be paying out more than it is taking in. Congress will have to do something. When this happened in 1983, they raised taxes and reduced benefits [including raising the retirement age for full benefits to 67]. It was supposed to solve the problem for 70 years. It didn’t. It is worse now. Th 1983 fix will last just 34 years. Kicking the can down the road again will just make the problem worse.
Fred said it would allow us time to get our arms around the problem so we can solve it long term.
LLS
That’s what Fred said. He said linking it to inflation would buy a little breathing room to plan a real solution.