Wednesday, April 13, 2005

Latest Dem Social Security scare tactic proven false...

The ever-popular Annenberg Public Policy Center's FactCheck.org, the bane of politicians (and their consultants) on both sides of the aisle, has done an analysis of the latest Democrat Social Security scare tactic and found it to be based on "false assumptions and deceptive comparisons." The scam includes a $1 million ad campaign and a "Social Insecurity" calculator that is being used on several Dem websites. In the analysis titled "A Rigged Calculator," the following analysis is detailed:

...the calculator is rigged.

...it is an artful bit of automated misinformation.

...the calculator systematically underestimates the likely returns of investments. [The Dem's website] says "The calculator assumes that your investments get a rate of return of 3 percent above inflation," a figure most financial advisers would find absurdly low. As we've pointed out before, the stock market has averaged 6.8 percent above inflation for the past century... [T]he lowest estimate [FactCheck could find had a] return of 5 percent to 5.5 percent. ...[Most economists found] a decent probability that returns would be even better than 7 percent.

The ad also fails to mention whose benefits would be "cut almost in half." Actually, no cuts are proposed for anyone currently getting benefits, something the ad fails to make clear.

I guess the LLL is looking for a longer historical trend before they can agree with the 6-7% estimate. What? You say that was a 100 year trend? Oh, never mind...

The Dems distorting the facts? I'm shocked! Shocked I tell you!!! Hee-hee...

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