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By Dean Baker
Published: March 30 2011 22:37 | Last updated: March 30 2011 22:37
With debates swirling about a deal to fund the US government for the rest of the fiscal year, the accepted wisdom in Washington policy circles is that the country must also make cuts to its Social Security system if it is serious about dealing with a growing budget deficit. But before anyone rushes to shave these benefits for retirees, it is worth asking why.
Back in February, Barack Obama's budget promised cuts of about $1,000bn in the next decade. The US president's proposals largely ignored Social Security. But the co-chairs of a fiscal commission, set up by Mr Obama, had earlier demanded deficit reduction of four times this amount. Deficit hawks now like to show off charts in which the costs of Social Security "“ along with Medicare and Medicaid, which provide healthcare to the elderly and poor "“ are projected to go through the roof in the decades ahead. These charts show the cost of everything else more or less under control. This looks ominous. But it is also a trick.
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