As he often does, The Daily Howler simplifies things, this time whether Bush is proposing “cuts” (as the Democrats say) or “increases” (as the White House puts it).
Who is “right” in this dispute? For our money, the claim that benefits would “increase” under Bush is far more misleading than the claim that they’re “cut.” But that is always a matter of judgement. Again, here are the facts that we would lay out to help people see the shape of Bush’s proposal. Note that you don’t have to use the disputed word “cut” to describe the basic facts that are involved here:
First: At present, middle-income retirees get a check from SS that equals roughly 36 percent of their previous income. Everyone agrees on that fact.Second: Under the Pozen plan, such retirees would instead get 26 percent of their pre-retirement income. Everyone agrees on that, too.
Third: The Pozen plan only resolves about 70 percent of the system’s projected solvency problem. (Everyone agrees on that.) If Bush wants to fix the solvency problem without adding new revenue, he may have to set benefit levels even lower than he has said—at perhaps 20 percent.
Conclusion? At present, middle-income earners get about 36 percent of their income replaced by SS when they retire. Under Bush’s plan, that may be 20 percent instead. Just state those facts to the average person. Trust us: You won’t have to say the word “cuts.” And they won’t think of this as an “increase.”
I mean really, if Somerby can explain it so succinctly, why can’t the mainstream media?