John B. Breaux: “Let me thank the Senator for that comment. I want to talk about why we did what we did with regard to the CPI…”

“Let me thank the Senator for that comment. I want to talk about why we did what we did with regard to the CPI adjustment, because it is controversial. But I think, as our colleagues understand better what it actually does in the real world, they will agree with us that it is the right thing to do. I think it is the correct thing to do, not only economically, I think politically it is the correct thing to do because we are telling senior citizens and everybody else who benefits from programs that are indexed for inflation, that we are going to take the steps necessary to make sure the program is there for the future. Unless some corrections are made, you are going to have an indexed program that does not have any money in it. So if the program is broke, what in the world is the benefit of having it indexed to inflation if there is no money left in the Treasury? I will give an example. Just with the Social Security Program, the estimates are, by the year 2030, the number of people receiving benefits is expected to rise to 43 beneficiaries for every 100 workers. Right now it is 27 beneficiaries for every 100 workers. There is an explosion with the baby boomers who are going to be retiring. What that means in real terms is that by the year 2013, not that far off--by the year 2013, Social Security benefit payments will exceed the tax revenues dedicated to the program. That simply means we are going to be paying out more than we are taking in.”