Plain Sense Economics

The old saying in Washington is that Social Security is the third rail of politics (as in – “touch it and you die.”)

First Social Security recipient - photo from NY Times

David Leonhardt wrote about a new stimulus proposal in today’s New York Times that raises questions about politics, economic stimulus, and cost of living adjustments.

If you wanted to help the economy and you had $14 billion to bestow on any group of people, which group would you choose:

a) Teenagers and young adults, who have an 18 percent unemployment rate.

b) All the middle-age long-term jobless who, for various reasons, are not eligible for unemployment benefits.

c) The taxpayers of the future (by using the $14 billion to pay down the deficit).

d) The group that has survived the Great Recession probably better than any other, with stronger income growth, fewer job cuts and little loss of health insurance.

The Obama administration has chosen option d — people in their 60s and beyond.