Policy Hub: Macroblog provides concise commentary and analysis on economic topics including monetary policy, macroeconomic developments, inflation, labor economics, and financial issues for a broad audience.
Comments are moderated and will not appear until the moderator has approved them.
Please submit appropriate comments. Inappropriate comments include content that is abusive, harassing, or threatening; obscene, vulgar, or profane; an attack of a personal nature; or overtly political.
In addition, no off-topic remarks or spam is permitted.
As I noted in my previous post, today's New York Times kicks off an article on social security with the observation that "Judging from the polls, President Bush's plan to transform Social Security... isn't going very well." I know that this is revisiting some old news, but the Times lead hearkens back to this CNNMoney headline from a few weeks back:
Poll: Bush slips on Social Security
Number of those who say retirement plan needs fixing in the next two years falls to 38% from 49%.
And there is this, from the Gallup Organization:
Majority Disapproval for Bush on Social Security
That latter headline is based on this information:
George W. Bush's ratings for handling Social Security have dropped in recent weeks as debate on the issue has intensified, with a majority now disapproving. Additionally, Americans today perceive less urgency for Social Security reform: fewer say major changes are needed to the system within the next two years than did so in January.
Note that neither of these results has much to do whether the public generally supports some form of reform involving private accounts. The first question pertains only to whether people think the president is doing a good sales job. (Surprise! They don't.) The second question refers only to the timing of the reform.
If you've heard this before I apologize, but let me suggest a few alternative headlines, based on a larger universe of poll results. These come from a Gallup report dated Thursday. (You will have to subscribe to gain access, but it's free for a 30 day trial.) To avoid confusion, I'll put the made-up headlines in red.
Majority Approve of Private Accounts
That would seem justified by these results:
Would you favor or oppose a plan in which people who choose to could invest some of their Social Security contributions in the stock market? (ABC News/Washington Post poll, March 10-13, 2005)
Favor Oppose No Opinion
56% 41 3
A question from Gallup's March 7-10 poll used the following language, and received a similarly positive response.
Suppose Congress and the president do pass legislation to make changes to the Social Security system this year. Do you think that legislation should -- or should not -- include a provision that would allow people who retire in future decades to invest some of their Social Security taxes in the stock market and bonds?
Yes, Should No, Should Not No Opinion
58% 37 5
Another question, from a Feb. 16-21 Pew Research Poll, using language along these same lines, yielded a solidly positive balance of opinion, although it also found a higher number of people expressing no opinion (probably because the question was preceded by one asking how much they had heard or read about the proposal).
[Generally, do you favor or oppose] a proposal which would allow younger workers to invest a portion of their Social Security taxes in private retirement accounts, which might include stocks or mutual funds? (Pew Research Poll, Feb. 16-21, 2005)
Favor Oppose No Opinion
46% 38 16
Or how about this...
Majority Say Social Security Should Be Fixed Now
... supported by this data:
Do you think it is -- or is not -- necessary for Congress and the president to pass legislation this year to make changes to the Social Security system?
Yes, is No, is not No Opinion
51% 46 3
OK, full disclosure time. When asked if there should be a trade-off between allowing diversion of funds into private accounts and future benefit receipts, poll respondents say "no" by a large margin, suggesting this headline:
When Asked, Majority Say They Want Free Lunch
As to the difference between the positive response to whether there ought to be reform this year and the oft-reported result noted in the CNNMoney headline above: The latter question makes reference to "major reform" and the former does not. Let me suggest, then, this headline:
Majority Get Nervous When You Ask Them A Question That Suggests Life As They Know It Is About To Come To An End
Wait. There's more interesting things in the Gallup report. This is based on Feb. 4-6 polling:
Assuming there would be no change in Social Security benefits for those who are now age 55 or older, do you think each of the following would be a good idea or a bad idea to address concerns with the Social Security system? How about -- [RANDOM ORDER]?
Good idea Bad idea No Opinion
Limiting benefits for wealthy retirees 68% 29 3
Requiring higher income workers to pay
Social Security taxes on ALL of their wages 67 30 3
Further reducing the total amount of benefits
a person would receive if they retire early 40 57 3
Increasing Social Security taxes for all workers 37 60 3
Increasing the age at which people are
eligible to receive full benefits 35 63 2
Reducing retirement benefits for people
who are currently under age 55 29 67 4
I'm kind of enjoying my tryout, so how about this one out for that last list of responses:
Majority Say Tax That Guy Behind The Tree
Here's one final set of results from Gallup.
Which is riskier for average American workers today: investing some of their Social Security taxes in stocks and bonds, or relying on the Social Security system to pay them the current level of benefits when they retire?
Investing in Relying on No Opinion
stocks and the system
bonds is to pay current
riskier level of benefits
46% 50 4
I've hit on this objection of treating benefits under the current system as if they are riskless before. If I believed for a second that this poll stuff was informative, I'd say I told you so.
- Business Cycles
- Business Inflation Expectations
- Capital and Investment
- Capital Markets
- Data Releases
- Economic conditions
- Economic Growth and Development
- Exchange Rates and the Dollar
- Fed Funds Futures
- Federal Debt and Deficits
- Federal Reserve and Monetary Policy
- Financial System
- Fiscal Policy
- Health Care
- Inflation Expectations
- Interest Rates
- Labor Markets
- Latin AmericaSouth America
- Monetary Policy
- Money Markets
- Real Estate
- Saving Capital and Investment
- Small Business
- Social Security
- This That and the Other
- Trade Deficit
- Wage Growth