Monday, April 9, 2012

The Washington Post Employs Robert Samuelson To Make Things Up About Economic Issues

Dean Baker could make a living by exposing the falsehoods in Robert Samuelson's columns in the Washington Post. In this case, Samuelson tells us that FDR would not like Social Security the way it is today. Apparently, Samuelson has some magic way of communicating with the dearly departed that he doesn't tell us about. He certainly doesn't back up his headline with any evidence. Samuelson then shows that he doesn't really understand that Social Security tax receipts are segregated in the federal budget. The government does borrow those segregated revenues, but it does so by depositing an interest bearing IOU in the SS trust fund. The SS Trust Fund is projected to be able to meet its obligations up to 2035. After that, a modest increase in the payroll tax, as percent of the growth in income over this period, will enable it to meet future obligations.

The most egregious lie in the Samuelson article occurs when he reports on research that shows that the recipients of SS benefits will get much more back from the government than they have paid into it. The study that he cited showed that this was true for recipients of SS benefits AND Medicare benefits. The payments only to SS beneficiaries will be LESS than what they have paid into it. Reporters like Robert Samuelson, writing for one of America's most widely read newspapers, add to the polarization of US politics.

Unfortunately, the post that follows, by Dean Baker, shows the NYT has its own versions of Robert Samuelson misinforming the public. Its a pity that so much time and effort is required just to correct the numerous falsehoods that find their way into the media. We have more important things that we should be doing to work on solving the real problems that we face.

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