W-b Lauds Decrease In Crime 
Mayor Mcgroarty And The Head Of The 
Police Union Offer Different Reasons For 
The Turnaround

2 Hurt When Car Spins Out Of Control 
Bear

Thursday, January 09, 1997 &nbsp;&nbsp;&nbsp;&nbsp;Page: 





Tinker but don't tangle with Social Security &nbsp;&nbsp;&nbsp; 
 Welfare grew to become one of America's most disliked social programs.
People of all incomes resented giving ``something for nothing,'' mourned the
growth of the welfare underclass, and hated the soul-sapping dependency the
government checks seemed to breedNo wonder Congress and the president
overhauled welfare in 1996. The system was broke and the government tried to
fix it. &nbsp;&nbsp;&nbsp; Social Security, on the other hand. ... &nbsp;&nbsp;&nbsp; 
 Sixty years after its founding, Social Security remains one of the most
popular and successful programs of the American government, ever. &nbsp;&nbsp;&nbsp; 
 That suggests the government should be very cautious about reforming this
one-of-a-kind success. &nbsp;&nbsp;&nbsp; 
 Social Security is everything welfare is not. It is popular: Try to get
elected in any district in America after proposing cuts in Social Security.
Just try. &nbsp;&nbsp;&nbsp; 
 It is effective. This New Deal program did exactly what it promised to do:
Drastically reduce poverty among the elderly. &nbsp;&nbsp;&nbsp; 
 "As recently as 1950, poverty rates among the elderly were more than double
those of the population at large," this week's New Yorker magazine reports. &nbsp;&nbsp;&nbsp; 
 "Tens of millions of old people were dependent on the charity of their
children and on the spotty largess of local assistance programs. &nbsp;&nbsp;&nbsp; 
 "In 1995, the poverty rate among people over 65 was just 10.5 percent,
which means that old people are now no more likely to be poor than are members
of any other age group. ... Government statistics suggest that without Social
Security, about half the elderly would have incomes below the official poverty
line." &nbsp;&nbsp;&nbsp; 
 And it is secure. The U.S. government, that icon of inefficiency, has done
a remarkable job in designing Social Security. For a so-called "ponzi scheme,"
it's awfully benign: If left untouched, Social Security can keep delivering
retirement checks for at least the next 33 years. After that, payroll taxes
still can finance 40 more years of slightly reduced benefits for 21st century
retirees, according to mid-range projections by the Social Security
Administration. &nbsp;&nbsp;&nbsp; 
 And that's if nothing is changed. As the New Yorker article concludes,
"This is hardly a system in terminal crisis." &nbsp;&nbsp;&nbsp; 
 Social Security's popularity, effectiveness, and cushion of time make us
skeptical of dramatic reforms, such as privatizing the program or investing
proceeds in the stock market. Sure, privatized plans (such as compulsory
savings accounts) would yield plenty of winners, as smart shoppers bought into
the stock market. But they also would yield plenty of losers. Some people just
don't know how to invest. Others can be counted on to make bad investments. &nbsp;&nbsp;&nbsp; 
 Their losses would widen the gap between America's rich and poor. And
that's a gap the current system has helped narrow for 60 years. &nbsp;&nbsp;&nbsp; 
 Likewise, investing Social Security funds in the stock market might yield
big returns. Or it might not. Those higher returns spring from higher risk,
after all. It's a tragic fallacy to think the returns could be had without the
risk. &nbsp;&nbsp;&nbsp; 
 Do you want your Social Security Trust Fund to be at the mercy of a stock
crash and a Great Depression? &nbsp;&nbsp;&nbsp; 
 There are other ways of filling the shortfall of Social Security funds
projected after 2029. Recalculating the consumer price index is one, New York
Sen. Daniel Patrick Moynihan asserts. The current index overstates inflation,
and results in higher Social Security cost-of-living increases than the
situation deserves. Reducing the index would moderate those increases and
preserve the trust fund way past 2029, Moynihan asserts. &nbsp;&nbsp;&nbsp; 
 There are other measures (such as raising the retirement age and nudging up
payroll taxes by 1 or 2 percent) that could help do the same thing. All in
all, we urge Congress to be careful on Social Security reform -- very careful
indeed. And the fewer changes, the better in this historic and remarkable
success. &nbsp;&nbsp;&nbsp;

Tinker But Don't Tangle With Social Security 
Welfare Grew To Become One Of America's Most Disliked Social Programs. People 
Of All Incomes Resented Giving ``something For Nothing,'' Mourned The Growth 
Of The Welfare Underclass, And Hated The Soul-sapping Dependency The 
Government Checks Seemed To Breed.