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May 3, 2005
Pozen Returns
Democrat Robert Pozen, the architect of “progressive indexing,” has another op-ed in the Wall Street Journal today defending his plan. Not only does he do a good job clarifying his proposal, but he also corrects a mistake he made in his first op-ed by clearly stating that the $3.8 trillion in unfunded liabilities is a present value figure.
Judging any reform plan relative to scheduled benefits is misguided. The schedule represents the benefits we have promised but do not have the money to deliver. That is why Social Security has a long-term deficit with a present value of $3.8 trillion. If the litmus test of a reform plan is not cutting scheduled benefits for any significant group of workers, then no viable plan to restore Social Security's solvency will pass muster.
Posted by Peter Mork at May 3, 2005 4:07 PM
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