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AEI Resident Scholar Andrew Biggs on the AARP's decision to drop its opposition to social security benefit cuts.
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Moments right big news today first and foremost out of Washington that AARP.
Will drop its opposition to cutting benefits for Social Security.
This could have huge implications for the entire entitlement debate here to analyze and break it all down this major shift.
They -- big -- deputy commissioner for this -- security administration -- resident scholar.
At the American enterprise institute and there is -- you to -- here why now.
That AARP campaigned against President Bush's proposal to partially privatize so securities so.
What -- what -- difference a few years banks.
Well I think they're trying to maintain their relevance.
Entitlements in the budget -- an enormous issue now people know we have to fix social security and Medicare.
And even president Obama's fiscal commission.
Recommended we fix Social Security two thirds by cutting benefits.
Only 13 by raising taxes so they are.
Q1 100% by raising taxes.
They're not even players in the game anymore.
-- even the president's council that mix of benefit cuts.
And tax increases is probably not something that that AARP will get behind because it's more benefit cuts -- not the tax increases.
Sure and I think internally they would far prefer to fix social security and Medicare as well 100% by raising taxes philosophically I don't think they've changed very much.
But I think they've known if you talk to folks behind the scenes that they are the they realize it inevitably Social Security reforms can be package deal and part of that package has to be reductions in benefits increases in -- retirement age things like that.
The question is whether a -- To really be -- relevant player in any kind of deal has hopes -- past.
Well they've got to worry about about getting their 37 million members on board with this planning town hall meetings -- -- to 'cause do you think back and half a or will there be a -- what -- backlash against the leadership that they are okay.
Well I I hope they can make it happen one problem is that most of the Social Security reform even the Medicare reform plans out there.
Don't really affect current retirees if you're you're retired or close to retirement your Social Security benefits are 100%.
Safe.
The problem is in past fights.
They -- So it's a little bit difficult to come back and tell them now -- don't worry about a week and cut benefits in the future it won't hurt you today so they have a mixed message to overcome.
If they can do it though I think it's good for ARP and good for the debate.
Good for the country but does anything get done before the -- -- twelve elections after.
I think it's very unlikely.
President Obama has some interest in Social Security form it's in his political interest effects the program.
But he has never been willing to stand up to the left wing of the Democratic Party when ever he raises the issue they slap a write down -- he backs off.
He needs to show leadership -- -- -- punted to the next president.
And your great of you -- be here thank you so much and credible story have -- agents and Interbank.
-- we're.
