When is Waiting the Wrong Answer

By Alan R. Davis

Sometimes some caution is a good thing.  And I’m usually not the first to rush in and do something.  But other times you have too.  When the neighbors log pile was on fire I couldn’t wait to see if it got bigger or possibly went out on its own.  I acted quickly.  And that kept the action necessary to resolve the problem from getting larger, like bringing in multiple fire trucks.

Well, I can’t help but wonder why Congress is waiting to pass necessary changes to Social Security?  Do they think that the Trustees are just calling “Fire” for the fun of it?  Ever since at least the 2005 trust fund report they have included some reference to making changes soon!  In 2005 they added the following:

“The sooner the adjustments are made the smaller and less abrupt they will have to be.”

That year the projection showed the trust funds running out of funds in 2041.  Eight years later they showed the trust funds running out of funds in 2033.  So as eight years passed with no Congressional action, the exhaust year got sixteen years closer.  If things continue at that rate the real exhaust year will be 2023, not 2033.

In the same period of time the trustee report’s estimate of the increase in withholding rate that would be required to maintain the trust funds’ viability has gone from 1.92% to 2.72%.  That’s quite a jump.  And it will only get bigger the longer Congress delays.

Under President Bush changes were proposed, but Democrats in the Senate and House said “NO!”  And in 201,1when it looked like President Obama and House Republicans might be willing to work a deal, Democrats in the Senate held their “Hands Off Social Security” rally.  They helped stop changes from being implemented with statements like Sen. Reid’s when he said

“Let’s worry about Social Security when it’s a problem – today it’s not a problem.”

Reports on his appearance on MSNBC just a week before quoted him as saying

“he would only be open to changing the program in 20 years.”

What will it take to change the mind of Senate and House Democrats?  It’s hard to tell.  But it’s not hard to determine the consequences of any further delays in implementing changes.  This is one time this type of extreme caution before acting is a real problem!