Nobody understands this so let's mess it up
by digby
Oy:
When asked if changing the Social Security formula for cost of living adjustments was a de facto benefit cut, Pelosi did not directly answer.
"No. Cutting benefits is exactly that. Cutting benefits," Pelosi said. "There's concern in my caucus about what would happen with the CPI (consumer price index). Some think it is a benefit cut, others do not."
But she reiterated that any savings from changing the CPI would have to go back to the Social Security Trust Fund.
Meanwhile, in the House Ways and Means Committee Friday, lawmakers grappled with the costs of Social Security and how to save it for future generations.
"Social Security has never contributed a dime to our national debt," said liberal Rep. Xavier Becerra, D-Calif., noting it has a nearly $3-trillion dollar trust fund to last it until 2036, according to the most recent estimates.
Rep. Sam Johnson, R-Texas, disagreed. All of Social Security's money is in bonds, which require the government to borrow money to redeem, he insisted.
Both, however, agreed that something has to be done.
Starting in 2037, benefits will drop to 77 percent of their required levels, as the system can only pay out what it takes in. For the third of seniors who have no other source of income, the impact could be significant.
"If we do wait until we're close to trust fund depletion," said Charles Blahous, a research fellow at the conservative think tank the Hoover Institute, "there's no historical president for closing that level of shortfall."
Ok. But would it really be too much to much to ask that since they all at least agree this problem is 30 years away there's no need to ram through any "solution" before the debt ceiling must be raised on August 2nd? Doesn't it make sense to allow for some substantial debate --- maybe even an election --- to happen before they start messing with the most important program in the safety net.
Really, there's no need for all this hurry.
Update: It's true that there are some Democrats who think this change isn't material. But they are wrong:
“If the price of a Mercedes goes up, that maybe you don’t buy
a Mercedes, you switch and buy an Audi or something.” My testimony
has an example of the kind of choices real elderly people living on
Social Security have to make; it quotes an 84-year old widow in
Medford, Oregon who gets virtually all of her income from Social
Security: “ I can’t afford meat anymore, but every once in awhile if
I see a great bargain, I’ll splurge on a small piece of meat. There’s
a special discount cheese that I like. I make very thin slices….” It
also shows that for some things, you just can't substitute -- like
dental care you can't afford. You just do without.
.