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Friday, November 30, 2012

Entitlement Suggestion

We should know by now that government transfer payments in the name of  equity or the social contract or fairness or the safety net are the biggest items driving the federal deficit.

Here is a little suggestion

Indexing minus one

Easiest to look at is social security, which is indexed to inflation.
Payments go up every year at the rate of inflation.
This seems fair except that our society can't really afford to do this any more.

How about this. Inflation is 3%. Payments go up 2%.

This would gradually and eventually bring things back into balance.
And the pain each year would be negligible.

I have not heard this suggested.

Someone should do the math

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