U.S. Politics Online: A Political Discussion Forum - View Single Post - It's Official - Babyboomers Start Collecting Social Security

goober · #66 (**permalink**) 10-18-2007

I was having the "means testing" argument with my brother a little while ago, he was insisting that means testing could save money, I told him means testing was political suicide that would save nothing.
At this point my retired mother walked in,comfortably retired I might add (it's important to the story), my brother seeing the opportunity to destroy my argument asks my mother if everyone should get Social Security or only the people who need it. She replies that only the people who need it should get it,(then sensing victory) he then asks if people like her should get it, of course she says, she and my father need it (this conversation is taking place in their large waterfront condo) because that's the money they use to go out to dinner at nice restaurants. After all this my brother conceded that while the idea of means testing at first glance looked like it could save money, Social Security made up too large a percentage of most retirees income to cut it without serious repercussions.

After medicare they get $800 a month, they probably spend a couple of thousand a week, but that $800 a month is still something like 10% of their disposable income, and they would feel a 10% reduction in income, especially since it would hit their discretionary spending, their condo fees, and basic expenses would stay the same, but that $800 represents a large share of their fun money, and cutting it would impact their lifestyle.
Means testing does another thing to Social Security, it turns it into welfare, it changes it into a mark of shame, an insult to the people who get it.
Because if it's means tested that means they get it because they are poor, now they get it because they are over a certain age, and that's a huge difference, and the party that puts that through is gone from the stage for decades to come.