Alan Simpson: “We can fix Social Security in half a day”
Posted on 26 April 2010
By Mark Miller
Permanent URL of this article: http://retirementrevised.com/money/alan-simpson-we-can-fix-social-security-in-half-a-day
The co-chairs of President Obama’s National Commission on Fiscal Responsibility and Reform appeared on Fox News on Sunday to talk about the work they embark on tomorrow, when the commission’s first meeting will be held.
Retired Senator Alan Simpson (R-Utah) offered some typically frank talk on the future of Social Security that largely underscores what I wrote here last week–namely, that talk of a Social Security crisis is over-blown. Solutions to the program’s long-term (as in 25+ years) insolvency issues are well-known — delaying the eligibility age, changing the COLA formula and increasing taxes.
Simpson appeared with Commission co-chair Erskine Bowles with Chris Wallace on Fox News Sunday. He downplayed the notion that Social Security’s problems will be tough to solve–and took a shot at panicked seniors, who will be grandfathered into whatever solutions are implemented:
WALLACE: Let’s talk about some specifics that you are going to have to face, and Senator Simpson, let’s pick up on what Mr. Bowles just said. Speaking for yourself now, not – just as one member of the commission, do you see big savings to be made in Social Security
SIMPSON: Social Security doesn’t – if people of good will can get together on that baby, we can solve that one in half a day. Social Security is the least of our problems.
But the thing that is really impossible to believe is that whatever adjustment we make and whatever has been suggested for the last 10 years in Social Security reform, from top to bottom, you know, new dates, more contribution, none of that affects anybody over 57. Where do I get my mail? From these old cats 70 and 80 years old who are not affected in one whiff. People who live in gated communities and drive their Lexus to the Perkins (ph) restaurant to get the AARP discount. This is madness.
WALLACE: So if you can do it in half a day, give us a quick formula, you know, give us bullet points. What is it that you think you have to do? Or what can easily be done to save trillions of dollars out of Social Security?
SIMPSON: What we have to do is re-establish trust. It’s corny, really corny to say that the 18 of us have to establish trust. Knowing that nobody is going to lay there in the weeds and leak stuff, knowing that nobody is just there to drop a bomb or come armed and just fray the whole thing. And if it doesn’t work, I’ll go home to Codey (ph) and I won’t suck my thumb and I’ll say I did my very best.
April 27th, 2010 at 8:20 am
Is this the same Alan Simpson who used to represent WYOMING?
April 27th, 2010 at 12:36 pm
Absolutely!
April 27th, 2010 at 1:36 pm
Did anyone notice that the ex-senator didn’t answer the question Mr. Wallace asked (i.e. “formula”)?
May 8th, 2010 at 3:47 pm
You must be having fun with dopes day…
(1) “talk of a Social Security crisis is over-blown”
(2) “issues are well-known — delaying the eligibility age, changing the COLA formula and increasing taxes
(2) is just another way of saying (1)… that is the point. Mismanagment of SS has led to higher taxes and lower benefits… that IS the crisis.
Welcome to 1984 Mr Doublespeak!
May 8th, 2010 at 4:13 pm
Mike,
Just the opposite:
1) The last big tax hike for SS waas in 1983 under Reagan.
2) Since then, the accumulating SS surpluses have been used to fund other things… such as Bush tax cuts, wars, other deficit spending.
It would be silly …or–dopey?–to suggest that Social Security can go on forever with no changes. My point is that we should not dismantle the program or privatize it. The issue is the long-term draw-down of the surplus; every SS expert I’ve interviewed believes the program can be righted with modest changes, as opposed to wholesale revamping or cutbacks.
May 14th, 2010 at 1:41 am
Why would I believe or even listen to an over paid schmuck like Alan Simpson? Wasn’t he involved in the last change where the working taxpayers contributed an extra Trillion Dollars plus to right the system only to have Congress steal the funds for their pet projects? These guys show up and bitch about the 70 years olds complaining to him? He should get real and then give back to the taxpayers every dime of lobbyist and/or special interest money he took on top of his salary and perks. These high priced buffons continue to think themselves better than the average Joe and waltz around like retired-CEOs. Get some industry types to set up and manage the system, pay them a percentage of any savings and leave them alone, it would work better than what we have now. Remember that the opposite of progress is Congress.
May 14th, 2010 at 6:00 am
David:
Industry types …. hmmmm… maybe from AIG? Goldman Sachs? Bank of America? BP? Enron?
Let us all know who you’d like us to trust to run Social Security.