Social Security Indexing Debate
By Arnold Kling
Bill Sterling argues that the debate is long overdue.
If there was a substantive debate on wage indexation in 1976 it seems to have been entirely an inside-the-beltway affair.
Fearing to step on the dreaded third rail, President Ford ignored recommendations of the Consultant Panel on Social Security that were unusually clear about the long-run inequity and unsustainable nature of the shift to wage indexation…
We are pretty certain that in an honestly conducted survey about whether most people favor wage indexing versus price indexing of initial benefits the main answer would be: Huh?
With President Bush having made Social Security reform a high priority, the good news is that a genuine debate appears to be starting.
For Discussion. If you were to start with a blank piece of paper, would you choose wage indexing or price indexing for Social Security?