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March 10, 2005

George W. Bush: Liar or Fool?

Associated Press reports:

AP Wire | 03/10/2005 | Bush: Social Security wobbly, personal accounts are safety net: Bush said: 'In 1983, they solved the Social Security problem and said it's a 75-year fix. We'll, here we are 22 years later looking at a system that's going to go into the red in 2018. This time we ought to permanently.'

Does George W. Bush really think that the plan back in 1983 was for the Social Security Trust Fund to keep accumulating assets forever? Does he simply not realize that the idea was that the Trust Fund would grow and then shrink?

The Congressional Budget Office projects "trust fund exhaustion" in 2054 (or maybe, once 2004 numbers are factored in, a couple of years later). 75 years after 1983 is 2058. Looks like the 1983 reform did its job.

Posted by DeLong at March 10, 2005 06:13 PM