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View Diary: Should Americans Forgive the $2.5 Trillion Borrowed From Social Security? (181 comments)

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  •  Social Security is stand alone pay-as-you-go (4+ / 0-)
    Recommended by:
    2laneIA, leftreborn, saluda, TacoPie

    In 1983 Reagan and Congress stepped up to address the future retirement of the baby boomers.  The argument was made that their generation should be responsible to save for the future demand they would place on the system, understanding the alternative was the program would otherwise go bust or the future workforce and employers would get stuck with a gigantic bill.

    Social Security did what was prudent, it began saving for the future so that it could could afford to pay people what they were being promised during their working lives. And the Trust Fund grew.

    If its surplus is not honored it will be greatest financial abuse ever perpetrated by a government against its people.

    If, in fact, the surplus is simply deemed to have been a part of the general revenues then the reality is that for 30 years workers and their employers have been paying a much higher income tax, about 12% of their total income more.  This would mean that we have had 30 years of the most regressive income tax in the entire world.

    In his push for privatization Bush make statements contending that the surplus didn't really exist. The media let him skate on that. The proper reaction would have absolute outrage. That it continues to be bandied about and treated seriously is an outrage. those elected officials that do so are giving their approval to what then becomes the greatest lie perpetrated by our government against its own people, a lie which by design had the least impact on the richest.

    It should be obvious to everyone by now that the modern Republican party exists to screw over the vast majority of Americans for the economic benefit of the richest. Period. Stealing the surplus should be expected of them and denying them this goal should be the unwavering goal of the Democratic party.

    These truths should be self evident: the Republican party lies, it cheats, and it steals.  It does so to deceive the vast majority of the country in its service to the rich. They are a cancer on the economy and to our democracy.

    •  This will end badly. (0+ / 0-)

      "Social Security did what was prudent, it began saving for the future..."

      But the fund contains assets that are also liabilities of the government.

      That would be like me writing a check to myself for $5 million and claiming that I am $5 million dollars richer.

      leftreborn highlights the problem perfectly, "It just moves the number from the column on the right (in the table above) to the column on the left."

      Somehow that is offered as a solution, though.

      I read a comment further up which described what I believe is likely to happen. SS beneficiaries will receive nominal checks until the day they die, but those checks won't buy them much as the dollar continues its path towards oblivion.

      This will end badly.

    •  When I came upon the statement in the budget (0+ / 0-)

      resolution about the surpluses that were borrowed, I didn't know what to think.  I let it sink in for a couple of days and I began to do some research around it.  I don't want to alarm people without reason.  

      The surplus has to be honored.  It must be honored.  I don't know why there seems to be a concerted efforted among a number of conservatives to imply that repaying the funds won't be as easy as it was to borrow them.  Is it ignorance?  I don't know.  I looked into this topic thoroughly before writing and uploading the diary.  Conservatives who cast doubt on the government's debt to Social Security were singing a different tune last year during the debt ceiling debacle.  At that time, they took issue with a statement made by the President warning that Social Security payments could be impacted by a failure to raise the ceiling.  Conservative writers were asserting that he caused alarm needlessly because there are other options available using the holdings in the trust fund.  

      When it suits them they say the holdings are as good as cash.  When they have a different agenda they cast doubt on them.  They throw up a cloud of dust and smoke and it seems no one can see through it.

      "Those who deny freedom to others, deserve it not for themselves." - Abraham Lincoln

      by leftreborn on Mon Dec 03, 2012 at 11:05:44 AM PST

      [ Parent ]

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