Social Security Hearings: Ferrara’s Foolishness

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"Social Security Hearings: Ferrara’s Foolishness"

The Senate Finance Committee is conducting major hearings this morning on Social Security reform. ThinkProgress will be providing live updates throughout. You can watch the hearings live at CSPAN.org, or read more about them here.

Peter Ferrara, 4/26/05:

The chief actuary of Social Security has scored this [the Ferrara plan] as achieving full and permanent solvency.

Center for Budget and Policy Priorities, 12/22/03:

The claimed “seal of approval” that the actuaries are said to have placed on the plan turns out to be nothing more than a finding on the part of the actuaries that given all of the specifications Mr. Ferrara directed them to use — including the specification of extremely large general revenue transfers [$68 trillion] — the plan would restore long-term Social Security solvency. This should not be regarded as a breakthrough or a notable accomplishment. Virtually any plan that assumes general revenue transfers equal to nearly twice the Social Security shortfall should be able, on paper, to restore long-term solvency to the program. In other words, the Ferrara plan achieves its goals through an enormous “magic asterisk.”

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