What transition costs?
The below describes the "transition costs" of Social Security. Most of the article is in the first comment.
WASHINGTON -- In the more than 41 years that I have been writing columns, nothing has generated more unfavorable comment from conservatives than my Dec. 6 report on Republican Sen. Lindsey Graham's Social Security plan. He would finance the transition costs for private Social Security accounts by raising payroll taxes. Of all the outraged critics from the Right who contacted me, economist Larry Hunter had the most pungent rebuttal: "There are no transition costs."
If that is so, I asked Hunter, can you write me a one-page explanation to buttress your remarkable claim? Nearly a month later, he gave me three single-spaced typewritten pages plus four colored graphs. Actually, they portray an increase in federal expenditures forced by private accounts -- that is, transition costs. Hunter's point: There would be no long-term net transition costs. Doing nothing will cost much more, beginning as early as 35 years from now. (Hunter's analysis will be published by the Institute for Policy Innovation.) That amounts to no real transition costs. The problem with this argument is that we are talking about red ink far into the future when nearly everybody now debating the issue will be dead. Although it is a difficult argument to make, it looks like the only alternative to Graham's proposed higher payroll tax payments in the upper income brackets.