Please Do Piss on the Third Rail

I was not particularly impressed when John McCain said he'd balance the federal budget in 4 years. I think that such a goal is pure fantasy, especially with a Democratic Congress. Many analysts and observers agreed, noting that McCain's own numbers just don't add up. Still, I give him credit for trying. He has his heart in the right place: control spending! Maybe he should throw the Dems a bone and compromise on retiring the Bush tax cuts in exchange for tough cuts on the spending side. Of course that's really only something he could do as President, after winning the election.

I was stunned when he dared touch the third rail of politics a few days later, in Denver July 7th. McCain was roundly criticized by the lefty blogosphere for boldly declaring the impending Social Security crisis "a disgrace." The liberal nuts went insane, he muddied their sacred government cow. Matthew Yglesias called it "peeing on the third rail." The comments sections were flooded with the usual claims that Social Security has no real fiscal shortfall. This issue is the Dem equivalent of Global Warming denial: the science is all against them. The Trustees of Social Security themselves, actuaries with pocket protectors, publish a detailed report projecting demographic trends and resulting revenue versus spending. It says the program is in trouble. What's more, Obama believes there is fiscal imbalance. Why would he propose eliminating the payroll tax cap of $102000 if there were no need for higher revenue?

McCain was asked to clarify. Young people, he said, "are paying so much that they are paying into a system that they won't receive benefits from on its present track that its on, that's the point." Here is a courageous politician, willing to take on an issue that burned George W. Bush just 3 years ago. Anyone under the age of 40 should think long and hard about that. We pay more than 12% of our paycheck to FICA, yet the funds don't legally belong to us. The money is not in an account, it doesn't accrue interest or grow, and it can be redefined by Congress on a whim. In all likelyhood, future benefits for today's workers will be 75% of current benefits or less, and we will be forced to work years longer until retirement.

Note that McCain was not even proposing private accounts as the solution, that was D.O.A. for Bush in 2005. His very reasonable, politically moderate full response reads:

"Now, how do you fix it? Now, how do you fix it? You fix it by reaching across the aisle, and you say to the Democrats, 'Sit down with me at the table. Sit down with me, the way Ronald Reagan and Tip O'Neill did the last time that Social Security was in deep trouble, and that was way back in 1983.'"