Thursday, June 13, 2019

Simon, Stiglitz, Delong and Krugam, this is how generations overlap

It is almost 22 years to the month since Representative Barber Conable Jr. strode to the floor of the House to defend a carefully constructed plan to save Social Security. Mr. Conable, a moderate New York Republican with whom I then worked, spoke with characteristic understatement. “This is not a work of art,” he told a packed chamber. “But it is artful work.”He was right. The $168 billion package eased the program through a turbulent period, and 1983 marks the last time Congress cut Social Security benefits, raised taxes and lived to tell about it. Before drawing too much inspiration from this history, however, we should recognize that this rescue was anything but assured when Mr. Conable and the other members of the bipartisan National Commission on Social Security Reform began work under the leadership of Alan Greenspan in February 1982.
Right from the history books.
And the two parts are there, the part about where the greatest generation said is was already balanced, and the part where Krugma and Delong, and the boomers, said it wasn't .

Now we have the same set up, boomers saying we do not need this and millennials saying we do. The difference between this time and the last time is that we are doing a better Nixon shock to prepare for the event, and we expect pricing to settle  within a couple of years,  not seven. The last thing we need is a bunch of boomer economists now ignoring the historical inevitability. We are doing this, and boomers can kick and scream all they want.

No comments: