Don’t cut Social Security, DOUBLE It [View All]

http://www.newamerica.net/publications/policy/secure_retirement_for_all_americans

Don’t cut Social Security, DOUBLE It

By Steven Hill

In the aftermath of the Great Recession, a debate over Social Security is heating up. This debate raises fundamental questions about the kind of society in which Americans wish to live. So far, the debate has been between deficit-busters who say Social Security must be trimmed back to reduce government indebtedness and others who want to maintain it as is.

But the New America Foundation just released a study http://www.newamerica.net/publications/policy/secure_retirement_for_all_americans that proposes a different approach: doubling the current Social Security payout, and making it a true national retirement system. Creating a more robust system of “Social Security Plus” not only would be good for American retirees, but also would be good for the greater macro economy.

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An expansion of Social Security — one of the most successful and popular social programs in American history, currently celebrating its 75th year — would be good for the macro-economy as well because it would act as an “automatic stabilizer” during economic downturns, keeping money in retirees’ pockets and stimulating consumer demand. Benefits would be portable when changing from one job to another.

It also would help American businesses trying to compete with foreign companies that don’t provide pensions to their employees, since those countries already have generous national retirement plans. And it would be broadly fair, since even those higher income Americans who are losing their tax deductions would see part of it returned to them in the form of a greater Social Security payout.

more:
http://firedoglake.com/2010/09/02/special-salon-steven-hill-dont-cut-social-security-double-it/

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Bingo.
And, I would point out, Social Security has turned out to be much more stable than any of the other “legs” of our three-legged retirement stool, i.e. company pensions and private savings/homeownership.
http://firedoglake.com/2010/09/02/special-salon-steven-hill-dont-cut-social-security-double-it/#comment-2209038
http://www.ft.com/cms/s/2/1a8a5cb2-9ab2-11df-87e6-00144feab49a.html
http://growth.newamerica.net/sites/newamerica.net/files/policydocs/FreedomFromFear.pdf
http://growth.newamerica.net/sites/newamerica.net/files/policydocs/Hill%20-%20Social%20Security%20-%2013-Aug-10%20-%20spaced%20graphs.pdf