For Clinton, no Social Security plan is the best plan
GILFORD, N.H. – Visiting the lakes region today, Hillary Clinton not only defended her lack of a specific plan to reform Social Security but called her rivals irresponsible for offering more detailed proposals.
Clinton wants to focus on fiscal responsibility throughout government, and appoint a bipartisan commission to examine the entitlement program’s funding shortfall. But she has been criticized by rivals for not actually saying how she thinks Social Security would best be fixed.
She has previously taken Barack Obama to task for talking about a Social Security “crisis.” Clinton argues that there is no crisis and that such talk comes straight out of “Republican talking points.”
But today, speaking at the Gunstock ski lodge at the bottom of the slopes, as snow machines blew furiously outside, she went so far as to proclaim, essentially, that right now no plan is the best plan of all.
“I think it is a mistake for Democrats to be throwing these ideas out when we know that we can’t do anything unless Democrats and Republicans hold hands and jump together,” she said.
“Most of my opponents are more than happy to throw out all their ideas, and I just know, maybe it’s because I’m a student of history and I’ve been studying this, I know that eventually you’ve got to have a bipartisan commission,” she said, referring to such a commission created by Ronald Reagan in the 1980’s. “That’s the only way we’re going to resolve that.”
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This is good stuff from Hillary. The SS Turst Fund is supposed to have about $2 trillion in it right now. It has a bunch of IOUs. There will be a SS surplus of about $200 billion in 2007, but it will all be spent on other things. $200 billion of new IOUs will be sent to the Trust Fund. And, each year, interest on the IOUs in the Fund are due, or about another $100 billion. So, if the SS system is tweaked to provide more of a surplus, that extra money gets spent on other things and more IOUs than ever are in the Fund. There is no easy "fix" to SS. Real money needs to be deposited in the Trust Fund, so that in 2018, when interest on the principal in the Fund is projected to be needed for distribution, at least something real will be there. Good stuff from Hillary in this area. Don't look for a quick fix!