As I was examining the CBO's new Social Security chart projecting revenues and outlays for the next hundred years, it suddenly hit me: The so-called pundits I've been watching, on both sides of the debate, have essentially been ignoring what is arguably the most important factor of all.
The factor they're ignoring becomes clear when you compare the two images below. The first one is a raw copy of the chart on their website. Next is the one with my enhancements added, and the important questions that few if any are discussing.
Updated Long-Term Projections for Social Security
(click to enlarge):
The important questions that almost everyone is ignoring:
• What if the economy grew at a higher rate?
• Which policy options might boost the economy's growth rate?
• Will lower tax rates boost GDP growth? If so, by how much? If not, why not?
And last but not least: Why are these questions being ignored? (Might the answers be embarrassing to either side's party-line talking points? Is it considered too complex for the public to understand?)
Steve Forbes said it well:
You can't cut your way to prosperity, you've got to grow the economy.
[By the way, this gives me a couple ideas . . . so look for more here over the next several days regarding the effects of GDP growth.]
