tes on debt, hurting the economy (Business Week, How to Resecure SOCIAL SECURITY.). Compulsory saving in stocks would also require tax increases or cuts in government spending (Samuelson). Privatization, though, may be worth a try. Currently, the US Government can afford to experiment as there exists no immediate SS crisis, and if funds are not raised for saving the benefits being paid after the trusts go bankrupt will not be at paid at 100%. A small amount of investment therefore definitely seems worth a try. The next practical solution is seen as the very risky, at least to politicians hoping for reelection. That is the raising of the already high payroll tax at 12.4% and the lowering of benefits Rose 5 to save for the coming tide of retirees and entitlements. This controversial move would ensure that Social Security would be paid in full for at least 75 years, but is challenged greatly by those already on OASDI, who have strong political footholds. Interest-group politics can weigh in greatly. The American Association of Retired Persons, for one, pledges to keep Social Security as a government guaranteed plan. Labor, too, is opposed. Free-market agencies and business would favor any change, however (McNamee). Neither the Executive nor the Legislative Branches of the government are anywhere near willing to make a move like raising taxes and/or lowering benefits because of this. A very practical, and yet controversial, method being proposed for saving is that of lowering the Cost Of Living, or making a Cost Of Living Adjustment (COLA). Last year it was discovered that the consumer price index (CPI) has been over-stating the annual cost of living by 1.1%. Social Security payments are directly tied to the CPI and determine the annual payment amounts. In other words, beneficiaries have been doing a little better than the true rate of inflation. Simply by reducing the CPI by 1.1 percent a year the government could save approximately $1 tri...
