NCPA challenges MoveOn.org - bring it on, freepers

[paineinthearse]

MoveOn.org - Democratic Leadership Mislead on Social Security Reform; NCPA Analyst Says It's Time for an Honest Debate

2/2/2005 4:53:00 PM


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To: National Desk

Contact: Sean Tuffnell of the National Center for Policy Analysis, 800-859-1154

WASHINGTON, Feb. 2 /U.S. Newswire/ -- Opponents of reforming Social Security with personal retirement accounts have launched a concerted misleading attack in preparation for President Bush's State of the Union speech this evening. Whether it is attack ads from the liberal advocacy group, MoveOn.org, or the "prebuttle" by Minority Leaders Sen. Harry Reid (D-Nev.) and Rep. Nancy Pelosi (D-Calif.), the standard line is that the problem doesn't begin for 40 years and President Bush's plan would result in benefit cuts of over 40 percent. According to experts with the National Center for Policy Analysis (NCPA) both arguments are disingenuous.

"Opponents of reform are just muddying the water," said Moore. "If they are not going to offer a solution of their own, at least they could be honest about President Bush's."

Under current law, benefits are projected to be paid in full until 2042. However, the real problems for the economy and taxpayers begin in 2018. Between 2018 and 2042, Social Security will ask the federal government to redeem the bonds in the Trust Fund ($2.3 trillion between 2018 and 2041 in 2004 present value dollars).

"The cash will have to come from somewhere, whether from taxpayer's pockets or other government programs," said Moore. "Thus, the costs imposed on society by Social Security's cash flow deficits mean the problem actually begins in 2018."

MoveOn.org, et al. also claim that President Bush's proposal will result in benefits being cut by over 40 percent. This appears to emanate from an often cited CBO analysis of Model 2 from President Bush's 2001 Bipartisan Commission. In their analysis, CBO uses a very conservative 3 percent rate of return on personal retirement account earnings, which drives down the value of personal retirement account assets.

But critics fail to note that the CBO report ALSO SAYS if the rate is more realistic, say, 4.9 percent (5.2 percent less administrative fees), then "as a result of the higher expected return from (personal account) investments, the range estimates give a different picture. Total trust-fund-financed benefits are likely to be higher under CSSS Plan 2 (the President's approach) than under current law" (p. 14).

Additionally, observers should note that the dire projections trumpeted by MoveOn and the rest apply to today's newborns and future generations, not to today's retirees.

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The NCPA is an internationally known nonprofit, nonpartisan research institute with offices in Dallas and Washington, D.C. that advocates private solutions to public policy problems. NCPA depends on the contributions of individuals, corporations and foundations that share NCPA's mission. The NCPA accepts no government grants.

http://www.usnewswire.com/

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/© 2005 U.S. Newswire 202-347-2770/

[Vincardog]

1. The nub of it is that aWoL does not want to repay the Trust Fund ($2.3 tr

The truth comes out. He already gave his rich friends the Trust Fund ($2.3 trillion) and does not want to have to give it back.

[Mojambo]

2. Bingo

It's like me telling my creditors I can't pay what I owe because I spent all my money on booze and hookers.

Crooks talking circles, that's all they are.