Wednesday, January 25, 2012

Another Elite Media Lie About Gingrich

Ramesh Ponnuru examines Newt Gringrich's bold new ideas and finds them illogical, impractical, and expensive. His wacky no-risk privatization of Social Security, for instance, could break the Treasury:
His plan guarantees that if people’s investments fail, they will still get all the benefits that current law promises them. How can the government save money while giving everyone their promised benefits and making up unlucky or incompetent investors’ shortfalls? It can’t. And won’t those shortfalls be larger if people know they can’t lose? Plenty of Social Security plans involve the government saving money in the long term by taking a hit in the present. Gingrich has managed to devise a plan that actually increases the program’s long-term cost. The price tag for Gingrich’s originality, based on estimates of similar proposals in years past, would be several trillion dollars.

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