Two informative blog posts by Paul Krugman today in The New York Times Opinion


August 13, 2010, 9:21 am

Social Security Finances

August 13, 2010, 2:46 pm

Social Security: A Minor Fiscal Issue

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I would NOT agree that an increase from 4.8% to 6% of GDP is "Minor" - it is a 25% increase on a "small number" - but the "small number" being quite huge in dollar terms, 25% increase really adds up.  Whenever we speak of percent of GDP, the numbers are always small and the creep is quite steep effect on the deficit -- well, the creep is usually impact on the deficit. LOL.

And, no, we do not need the social security system to be mucked with.

Social Security is something that people have earned. We have to change our mindset on this as an "entitlement program" - because it is a system where the government is insuring the people with a certain income stream for the duration fo their life based on the level of contribution that they have made into the fund. There is a calculus on one side and a longevity matter on the other. It is pure business contract and should be viewed that way.  The government should not deem itself at liberty to change the model at whim and fancy. It is people's money and however it is that the government manages it, it is owed back to the people as the government assures them year after year in those reports that land in our mailboxes.

For all those who are working part-time, be sure to work enough to qualify for your social security income. I encourage all stay-at-home moms to be absolutely sure to have sufficient skills that they can stand on their own two feet -- that gives them tremendous confidence in everything they do and in all their relationships -- and for them to ensure that they work enough to qualify for social security income.  I think it still is 40 quarters of income with FICA contribution.  So, there, do it and make sure you hold the government to their end of the bargain in your ripe age. :)