A Presidential Candidates Social Security Dilemma
All Presidential candidates face the same dilemma when trying to deal with the Social Security issue. They know that the current system is not sustainable and will bankrupt the country if not addressed. But addressing it in any meaningful way could be political suicide. Compounding the problem is that voters either do not fully understand the nature of the crisis or are just practicing willful ignorance.
I recently heard a discussion among several economist in which one provided the best layman’s explanation I have heard so far.
Imagine you are in charge of a lifeboat in shark infested waters with ten other passengers ranging in age from infant to ninety five. The passengers can vote on who is to be the leader. The ninety five year old is very ill and his term of survival unknown. There is a leak in the lifeboat just below the water line and the boat is slowly sinking. The only hope is to significantly reduce the weight in the boat so it will ride higher above the leak. To do this they must get rid of a couple of hundred pounds of weight. There are about two hundred pounds of food and water on the boat.
The only viable options are to:
1. Ask for volunteers to leave the boat.
2. Throw out the food and water supplies
3. Wait for the old man to die, postpone any current action and hope for the best.
The passengers are due to vote on a new leader who will make the decision. And there folks, you have the current Social Security dilemma!
All Presidential candidates face the same dilemma when trying to deal with the Social Security issue. They know that the current system is not sustainable and will bankrupt the country if not addressed. But addressing it in any meaningful way could be political suicide. Compounding the problem is that voters either do not fully understand the nature of the crisis or are just practicing willful ignorance.
I recently heard a discussion among several economist in which one provided the best layman’s explanation I have heard so far.
Imagine you are in charge of a lifeboat in shark infested waters with ten other passengers ranging in age from infant to ninety five. The passengers can vote on who is to be the leader. The ninety five year old is very ill and his term of survival unknown. There is a leak in the lifeboat just below the water line and the boat is slowly sinking. The only hope is to significantly reduce the weight in the boat so it will ride higher above the leak. To do this they must get rid of a couple of hundred pounds of weight. There are about two hundred pounds of food and water on the boat.
The only viable options are to:
1. Ask for volunteers to leave the boat.
2. Throw out the food and water supplies
3. Wait for the old man to die, postpone any current action and hope for the best.
The passengers are due to vote on a new leader who will make the decision. And there folks, you have the current Social Security dilemma!
