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Show 6 - The Daily Utah Thursday, December 3, 1998 Chronicle Save Social Security Through Prioritization Matt Nagel Chronicle Opinion Columnist When was 12, a 26 year-ol- d told me, "You and I will never see our Social Security." I didn't understand then how that would happen. Now I interpret his comment to mean that unless we prevent a downward spiral feeding a system that grows paradoxically; with each bite deceivingly larger, as it becomes more hollow the Social Security program will grow out of its own britches, and abandon those of us who provided for it. Social Security is a "pay as you I go" system, where the benefits are paid out to retirees by the payroll taxes of those presently working. In other words, it's like cutting grass throughout the neighborhood all day, getting home and feeling too tired to cut your own grass, so you sit there hoping that someone else will come along and cut it for you. Those people will exhaust themselves cutting your grass, and whoever else's, and find themselves unable to cut their own grass. And so on. This system appears to be efficient and neighborly. But what might happen to the system if the number of yards and mowers were manipulated disproportional- ly? Benefit levels have been adjusted throughout the program's existence to reconcile fluctuating costs of living and inflation. So far it has fluctuated like the height and weight of a boy who drinks lots of milk-stra- ight up. The reach of the program has expanded to include 96 percent of the work force paying the benefits of 91 percent of the aged. But drastic demographic changes have promoted pessimistic projections for Social Security. The peak " of fertility rates was 3.7 children born per woman in 1957. By 1976, the next generation of mothers had cut down nearly two children, to 1.8. So in the "pay as you go" system, upon the retirement of the generation of workers conceived at World War II victory parties, Social Security benefits will need to be provided by a necessarily overtaxed, less populous tax base. The current ratio of workers to retirees is By the year e ratio is expect2030, a ed. A rising life expectancy, from 61 in 1998 to 80 into in 1935 to the 21st century, means the benefi- "baby-boom- five-to-on- e. three-to-on- 75-7- 8 Check in. Relax. Take a shower. fully be accommodated with projected budget surpluses that should be sufficient for (and directed towards) financing the transitional retirees. This would require a disciplined legislative branch to keep money in the Social Security trust fund so that it can accrue interest. It has been common for those funds to "cover" for other aspects of the budget that are lacking. But other changes must also be made. Economist Milton Friedman wrote, "For most families of low or modest income, it is by far the heaviest tax they bear." The other side of that regressive Ted Turner, coin are the super-ric- h Bill Gates, Rupert Murdoch and their golfing buddies. They pay the flat rate up to a certain ceiling, and the rest of their astronomical incomes is Social Security Thus the program excludes some very big ballplayers from the game, costing the team valuable points. We should support our Senator as he strives to include some of these reforms in new legislation during January's legislative session. ciaries will remain on the rolls longer, requiring more total assistance. My grandpa is already 95. Privatization is a commonly discussed solution to the impending bankruptcy of Social Security. This would involve a transition, phasing out old workers in the present system and incorporating young workers into an entirely new one. Members of a 1997 presidential advisory council proposed a version of this idea called the "Personal Security Accounts" plan. In it, all workers over 55 remain in the current program, all workers 25 and under go into a new plan, payroll investing their would-b- e taxes into the stock market, and all between participate in a sort of hybrid plan, paying 7.4 percent of their incomes to the Social Security trust fund,, and investing the remaining 5 percent privately. Senator Bennett supports this plan. The problems associated with the "pay as you go" nature of the present system (how the new retirees would receive benefits when the payroll taxes of the younger workers are going into private security accounts), will hope tax-fre- e. reducing its output to two or three issues per week. Such a move might alleviate the need to turn minor campus events into front page copy. I hope in the future the Chronicle will honor its commitment to its readers and provide the quality service it allegedly provides. NEWS continued from page 5 umn and attempting to turn them into "news." Honestly, could these items be the most newsworthy? If they are, the Chronicle faces a dilemma. There isn't enough "news" to sustain a daily campus newspaper. Perhaps the Chronicle should consider H. Justin Hitt College of Law vwvi Ass!" Call 581-704- 4 fr "it 1 for prices feW Ml Iff vw w UNIVERSITY ST. "l Conveniently located at the University its Htm 1300 EAST 1 PHONE: cm 582-500- grtootkiec Bite immimmmmtmmtmmmwmm fnm ttmt .il.lt: :,iiMI ,,iJi. j.m mm ta:fe4lliiilWHIflipi1H.rfp TTTTTTTTTT-T- OPENS NATIONWIDE DECEMBER 4 . $1.00 OFF A SMOOTHIE OR FROZEN YOGURT limit: One coupon per customers per visit. Offer is not good in combination with any other offer. Good only at the University of Utoh location. 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