Writing in the Wall Street Journal, Jon Cowan and Jim Kessler discuss economic populism and why it is failed public policy.
Social Security is exhibit A of this populist political and economic fantasy. A growing cascade of baby boomers will be retiring in the coming years, and the Social Security formula increases their initial benefits faster than inflation. The problem is that since 2010 Social Security payouts to seniors have exceeded payroll taxes collected from workers. This imbalance widens inexorably until it devours the entire Social Security Trust Fund in 2031, according to the Congressional Budget Office. At that point, benefits would have to be slashed by about 23%.
And yet, liberals persist in growing government programs and the dependency culture it represents. Should we have a moral social safety net for vulnerable people? Of course. But we need a better balance between public programs and private charities and individual help.
