More Evidence Both Parties Not Far Apart on Fixing Social Security

As I wrote yesterday, when President Obama stated in last week's debate that there was not much difference between his views and Governor Romney's on how to address Social Security's long term funding problems, the Governor's "non-response" effectively agreed with the President.  They turned instead to a sharp exchange of different views over how to fix Medicare.  Why?  Because it is a much bigger problem to deal with.

Dean Baker, writing in the Huffington Post today, effectively makes the same observation while drawing a starkly different interpretation.  He raises concerns about those aspects of a potential fix that will weigh most heavily on beneficiaries, such as adjusting the cost of living formula, raising the Full Retirement Age, and adjusting (lowering) benefits for higher income seniors.  Obama has already acknowledged that some or all of these options may be on the table.  I am certain some writer on the right would make the same observation with the opposite interpretation: Romney will betray taxpayers by raising the tax rate or the tax cap.  In fact, a judicious mix of all of these fixes probably needs to be incorporated in any eventual solution. 

Sure, there will be much screaming and gnashing of teeth on both sides of the political aisle.  The point is that there is effective agreement among serious politicians on how to get a deal done.  And for all the moaning, none of the fixes will fall catastrophically on any group.  Once this is resolved, the changes - likely to implemented gradually over a long period of time - will hardly be noticed.  In 1983 they raised the Full Retirement Age from 65 to 67.  Three decades later the Full Retirement Age has moved all the way to 66 and won't get to 67 for another ten years.  Who do you ever hear complain about the fact that their retirement age is 67 while it was 65 for their parents?

Most importantly, once they do agree on the fix and implement it, Social Security will be a stable and reliable source of retirement funding as far as the actuaries can see.  Now, if we can just educate those approaching their sixties on how to make better Social Security claiming decisions...