We are often reminded that the definition of insanity is to continue to do the same thing and yet expect a different result. However, is that not what some are suggesting is possible with their ardent opposition to any cuts to Social Security?
Several groups are up in arms following a report in the Wall Street Journal that the leading advocate for senior citizens, American Association for Retired People (AARP) is appearing to signal a willingness to support limited cut in Social Security benefits. Naturally within the first few hours cries of shock and dismay went forth accusing the powerful organization of relinquishing leverage too early in the negotiation game.
However, reportedly the proactive step was taken to discourage the idea of putting social security on the table as a part of the debt ceiling negotiations going on to avert the nation’s defaulting on outstanding debt next month. These talks are led by Vice President Joe Biden between leaders of both sides of the aisle in Congress.
Most realize that changes must occur if Social Security is to survive, yet many under the age of 50 do not expect Social Security to provide benefits to them at their current levels when they are eligible. However, the minute changes are suggested, the scare tactics are dragged out and realism goes out the window.
In an attempt to calm the masses, AARP leaders responded to the outcries by assuring their members they were referring to modest cuts. Also, there would be enough lead time to avoid impacting current benefit retirees or those expected to enroll in the near term. In other words, don’t worry about it, your children and grandchildren will feel the brunt of the pain.
Suggested changes offered by President Barack Obama’s fiscal commission included raising the retirement age to 69 incrementally by 2075 and reducing the benefits provided to wealthier retirees.
Are there other options to consider in an effort to modify the Social Security program? Yes, but will they realistically get through Congress and the White House when everyone is focused on winning 2012? No. The country cannot afford to let the debt ceiling talks collapse and we cannot afford the Social Security program as we know it to continue forever. Hopefully the adults in the room will work together to find realistic solutions despite the public outcry.
However at the end of the day, we must decide are we going to continue our financial insanity?