Posted on 10/01/2007 1:51:56 PM PDT by Graybeard58
For nearly two decades, Congress and the White House have known Social Security is unsustainable because it pays today's retirees with contributions from tomorrow's pensioners. People who have run retirement programs on the same model — Ponzi schemes — soon found themselves behind bars.
According to the Trustees for Social Security and Medicare, those entitlement programs combine for $83 trillion in unfunded liabilities with Social Security accounting for $12 trillion. (Today's national debt is only $7 trillion.) By 2018, Social Security will begin paying out more than it takes in, so taxpayers will have to start making good on all those trillions in government bonds masquerading as the "Social Security Trust Fund." By 2030, benefits will consume more than half of all income-tax revenues. By 2069, if it hasn't collapsed, Social Security will require every income-tax dollar to keep it afloat. How the nation will afford this and fix Medicare with its $71 trillion unfunded liability is an open question no one on Capitol Hill wants to hear.
President Bush tried to reform Social Security, but Democrats so thoroughly demagogued his idea for private accounts for younger workers that even some free-market Republicans were afraid to support him. And when the AARP's scare-mongering convinced its members the president intended to reduce today's retirees' benefits — he proposed nothing of the sort — his proposal never came up for a vote in Congress.
Yet the time bomb continues ticking. Everyone knows the choices: raise taxes, reduce benefits or both; or transform it from Socialist Insecurity into a market-driven system akin to 401(k)s. Treasury Secretary Henry Paulson reminded Congress last week of the economic peril, the hard choices and the significant cost of delaying reform. The response from Congress: Crickets.
Because the bomb is not going to go off before the next election, the denizens of Capitol Hill are in no hurry to defuse it. Once the new Congress is seated in January 2009, members will say it's too close to the 2012 election to do anything. And they will continue to put off reform until the full-blown crisis explodes. Those counting on Social Security as their primary source of retirement income are advised to begin saving as much as they can.
Ping to a Republican-American Editorial.
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Ping to a Republican-American Editorial.
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Hey, don’t you know if we enact Hillary healthcare the savings we will enjoy will be more than enough to save Social Security. You wouldn’t think a Dem would offer another insurance plan if their first insurance plan was going bankrupt would you?
Let the record show that the Democrats fought Pres. Bush’s attempt to save SS tooth and nail. They are responsible for birthing this Ponzi scheme and they are responsible for its inevitable demise.
In essence, a 1% sales tax would fund a semi-private account for all citizens (born or naturalized) during that month. That amount of money would be set aside to be invested in the private markets. The fund would grow off of the interest earned until the person either dies, retires or is disabled. This one time investment would be the total obligation of the government.
In the case if retirement or disability, the person would be given the interest that is earned off of the principle. Upon their death, 20% of the funds would be given as a death benefit to the person’s estate and the remaining 80% would be returned to the US Treasury as it was tax money originally.
The only way to save SS as now constituted is to run the retirement age up to about 95.
The Government could make retirement illegal altogether, and the problem would be solved.
Force the government to pay back the SS system the billions of dollars it has borrowed, plus interest and stop the government from borrowing. Start revising the system NOW. It can’t wait.
That sounds wonderful but you should know that the government has absolutely nothing with which to pay anything that it does not first take from you.
Hitlery says she’s going to fix social security without privatizing or cutting benefits. So you know what that means. She’s going to increase taxes—again.
I challenge anyone to try and set up a PRIVATE insurance company on the exact same model and see how long it takes for them to have you in jail for fraud.
Well, since our money is really just fiat money, I’d just print out whatever money that is needed and simply pay the bill. Congress and the Fed make money out of nothing, why not pay the debt with that quality money??
Soon you will realize what taxes are really used for in this country. With this kind of fractional money system, nobody needs to be taxed other than to be kept in line.
Those that are planning on living on SS in the coming years are in for a big shock. Oh that is right, Hilary will save them when she turns this country into a Socialist’s dream.
Zimbabwe?
Only if you require repayment in paper currency. The U.S. government has tangible property that can be liquidated, with the proceeds used to satisfy government obligations.
The reality, however, is that the Federals will probably just continue to depreciate the dollar, attempt to introduce new and higher taxes, increase the retirement age, reduce benefits, and suck as much as they can for themselves before the ship finally sinks...all while lying through their teeth to the very folks that they are supposedly serving.
Hey, Ted Kennedy and most democratic senators assured us that there was not a problem with Social Security. Are you saying they didn't tell us the truth? (/sarcasm)
I’d appreciate being on the list.
But, but, but, Algore said we had the money in that lock box. You mean we don’t??? Tax the rich more. Don’t tax me, just the rich. Hey, tax smokers, drivers, drinkers, burger eaters, pizza eaters, tax people for every other breath they take, tax conservatives, rich ball players, but don’t tax me or the illegals because they are poor also. Where is the lock box money??? /sarcasm still on
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