UPDATED 4:06PM 6/17/11
When it comes to solving America’s debt “problem,” what we usually hear about is spending cuts or tax increases. Few talk about cutting Social Security. The program is wildly popular. It’s also a huge contributor to the nation’s debt problem. That’s why today’s news, via the Wall Street Journal, that the AARP may be shifting its position on the national retiree benefit program could be huge break in the battle over how we should reduce the U.S. debt. Apparently, the debate inside the lobbying group was heated. But it is expected that the AARP’s public stance will soon favor some benefit cuts for seniors receiving Social Security. It’s not clear yet what cuts the group would support. But that group has had a huge influence over debates about Social Security in the past. And anything that stops the growth of Social Security could make a huge difference in the budget debate.
But before everyone starts doing victory laps, there are some significant risks here in changing Social Security. Here’s why:
