Before And After
Not surprisingly, the latest widely mocked Luskin piece has now been edited by the honest folks hacks over at National Review. Let’s take a look:
| Before | After |
| FactCheck.org also cited concerns about public perceptions of the $11 trillion deficit number in the 2003 report of the Technical Panel on Assumptions and Methods — a group of actuaries, economists, and demographers appointed by the Social Security Advisory Board. The report recommended that the infinite-horizon deficit figure should be presented as a percent of payroll, and next to the value of payrolls to the same infinite horizon. This was done in the Social Security trustees’ 2004 report. The deficit amount of $10.4 trillion was given as 3.5 percent of payroll and compared with $295.5 trillion of total payroll.
Doing this may have toned down that big, bad $10.4 trillion number by setting it against a big, good $295.5 trillion number. But this is misleading, too, in its own way. If payrolls are $295.5 trillion and the deficit is $10.4 trillion, that means Social Security’s anticipated payments to the infinite-horizon must, by definition, be $305.9 trillion — which is a really big, bad number. But we didn’t hear any panels or committees or FactCheck.org demanding that number be shown. No, the public must only be shown good numbers. |
FactCheck.org also cited concerns about public perceptions of the $11 trillion deficit number in the 2003 report of the Technical Panel on Assumptions and Methods — a group of actuaries, economists, and demographers appointed by the Social Security Advisory Board. The report recommended that the infinite-horizon deficit figure should be presented as a percent of payroll, and next to the value of payrolls to the same infinite horizon. This was done in the Social Security trustees’ 2004 report. The deficit amount of $10.4 trillion was given as 3.5 percent of payroll and compared with $295.5 trillion of total payroll. If you want context — so that the public is sure not to be misled — then how about this? That $10.4 trillion number represents the value of economic assets today that would have to be contributed to the Social Security system to assure its perpetual sustainability based on the best estimates we can make at this time. To set things right, then, we would have to contribute today virtually the entire market value of the S&P 500. We would have to throw down the gaping maw of Social Security almost every share of every major company in America today in order to satisfy the hungry beast. |
That’s a rather substantial difference. I imagine that adding a disclaimer noting the change simply slipped the editors’ minds.
AB