From New Deal to Raw Deal: The Real Economics of Cutting Social Security

Thursday, 07/7/2011 - 5:17 pm by Thomas Ferguson and Robert Johnson

Contrary to the mainstream media and D.C. drumbeat, Social Security has little to do with the federal deficit. So why is there talk of cutting it?

This morning the Washington Post reported that the White House is offering to cut Social Security as part of a broader budget deal with the Republicans. At last we have the answer to the question everyone has been asking about the Democrats: How far can they go?

The financial collapse of 2008 has taught us to be skeptical of economic forecasts that simply spin trends out into an indefinite future. Most central bankers, economists, and business leaders failed not only to foresee, but even to imagine, the colossal dimensions of that catastrophe.