Remember The "There Is No Crisis" Crowd On Social Security?

by Pejman Yousefzadeh on May 13, 2009

Sure, you do. They were the crowd that swore up and down that we didn’t have any problems with Social Security, that George W. Bush’s attempt to reform it was just a scheme to kick little old ladies to the curb, and that anyone who said anything derogatory about Social Security and the way it was set up was just a big meanie who probably liked and voted for Herbert Hoover in a past life.

The “There Is No Crisis” crowd did a great job at scaring people when it came to the question of reform and fooling them into believing that reform wasn’t necessary. But when it comes to the long term viability of Social Security, it’s pretty hard to deny that the outlook is bleak. A major takeaway point: If people had been able to privately invest starting 40 years ago, they would still have more money than the amount promised by Social Security, even taking into account the recent stock market collapse.

Not that any of this information will deter the “There Is No Crisis” crowd from making its usual claims. But isn’t it time for all of us to recognize that the crowd just doesn’t have credibility anymore?

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