Many are sounding alarms over news that the White House fiscal commission is considering changes to Social Security as a part of a possible debt reduction proposal. Progressive members of Congress are demanding that Social Security be taken off the table. At the same time the commission is being similarly pressured from the right to take tax increases off the table.

Lowering the Heat Around Raising Retirement Age

In the following op-ed for the San Francisco Chronicle on Friday, August 27, I tackle five of the myths surrounding an increase in the retirement age—including claims that it would be regressive and that the elderly have anything to fear from Social Security reform. Although not the subject of this article, reform should also aim to improve benefits on average for low- and moderate-income retirees, as well as for those who are older and frailer.

Back to School – For many kids, parents and teachers today is the first day of school. Congress is still out until after Labor Day, but policymakers have plenty of homework.

Many Americans lament the state of U.S. education; they fear that low standards and expectations are impairing the ability of our children to prepare for the challenges ahead. Now some want to bring that same curriculum for failure to Social Security.

Washington Empties Out – With both houses of Congress in recess and the president traveling, Washington feels deserted. The biggest news in DC is whether the Nats will sign Bryce Harper. Congress will return after Labor Day.

They’re Here (for a day) – The House did return briefly on Tuesday to approve $26.1 billion in state aid. The president signed the bill, which is fully offset, shortly afterwards.

Social Security turned 75 today! While the program remains vigorous after all these years, it is beginning to show its age. Unlike those that depend on it, retiring Social Security is not an option, which means that action will be required. Whether it continues to thrive 75 years from now and beyond is up to us and the decisions we make in the near future.

We've spoken a lot about Social Security reform the last few days, in the context of solvency, sustainability, and direct effects on the budget. But we haven't yet talked about reform in the context of our overall fiscal and economic picture. On the fiscal side, our fundamental problem is the growth of entitlement spending, and this is driven by both health care cost growth and by population aging.

As we think about Social Security reform in the United States, it makes sense to look at what other countries are doing to reform their public pension systems. Facing serious fiscal crises, a number of countries have begun making serious changes to their public pension changes, recently. Many countries are well ahead of the curve, having made their programs sustainable years ago. Others have had to make changes recently, in light of new fiscal and economic realities.

We've talked a lot about the long-term outlook for Social Security (it is insolvent), its impact on the federal budget (it will increase debt held by the public in most future years), and why reform must go beyond solvency to also think about sustainability. But even once we all agree the program is in need of reform, it is important that we decide how.<

This week, The Bottom Line will be celebrating Social Security’s upcoming 75th birthday on August 14th, and our main present is a comprehensive look at its future. Today, we will be examining the two ways that Social Security can be thought of in respect to America’s budgetary future, and how each of those viewpoints affect the possibility for, and probable methods of, reform.