Cuts to Social Security payments could cost 419,000 jobs. According to the Southern Rural Development Center, "If Social Security payments were reduced by only five percent, the nation’s economic output would decrease by $63 billion, 419,000 jobs would be lost and tax revenues would decrease by $7.8 billion."
If that is the case, then who are the geniuses who are crying wolf, demanding that Social Security gets cut down? My guess is that those critics don't rely on Social Security.
1 comment:
The SRDC article appears written from a "progressive" viewpoint and not a reality-based viewpoint.
The Social Security assets are virtual securities that have to be paid for with real Treasury debt that competes for capital with the private sector and make private sector capital more expensive. This costs jobs.
The 35 billion infusion to the private sector would spur an increase in production in the private sector which would further spur hiring. And some of the social security beneficiaries would be among the hired.
The 35 billion dollar cut makes American goods cheaper and more competitive.
Just glancing at the original article - it looks like they just analyzed what removing 35 billion from the economy would do. That's interesting but irrelevant.
The article mentioned 35 billion - but it is really 35.5 billion. If you removed 35 billion in budget you would be able to fire about 5000 social security employees and free up 500 million more dollars.
If the AFGE was decertified the cost of administering Social Security would also go down which frees up even more money for the private sector. There is probably at least a billion in potential annual savings from this alone.
The average American worker is carrying the equivalent of 1.5 workers of government cost and regulation on his back. Anyone who thinks this doesn't cost jobs and make America uncompetitive doesn't work in the private sector.
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