Anti-Social Security-Mankiw Quoted

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The battle for Social Security's survival is under way. In a key maneuver recently, N. Gregory Mankiw, George W. Bush's chief economic adviser, explicitly floated the idea of cutting benefits, a necessary but unmentioned part of the White House's privatization plan. More details will be presented to the public in the weeks ahead, but the outlines of the Bush plan are already clear, having been laid out by his 2001 Social Security Commission. As Mankiw suggested, the Bush plan would require a large reduction in the benefits provided by the existing system. A worker who is 20 today would see a cut of approximately one-third in his or her retirement benefit, although workers would theoretically more than recoup this loss by investing a portion of their Social Security taxes in a private account.

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