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Democrats enjoy playing Lucy with the football too much with seniors, always threatening their Social Security checks, to ever want to consider privatizing social security. But 'Chilean Model' or 'Galveston-style' privatization is exactly what would take away their fun and games with seniors and allow some real stability for the pensions. Neither Chile nor Galveston have any net debt, either.
1 posted on 01/16/2013 7:47:58 AM PST by IBD editorial writer
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To: IBD editorial writer
The real story here is that the USG must borrow the money to pay SS benefits. SS has been running in the red since 2010, i.,e., it pays out more in benefits than it receives in revenue. This is now a permanent position.

In order to make up the shortfall, SS must redeem the T-bills in the SSTF thru the General Fund. In order to come up with the money to pay the benefits, the GF borrows 42 cents of every dollar spent.

Pelosi and the Dems like to say that SS does not contribute to the national debt, but in fact, it does.

Source: CBO “Combined OASDI Trust Funds; January 2011 Baseline” 26 Jan 2011.

Note: See “Primary Surplus” line (which is negative, indicating a deficit)

2 posted on 01/16/2013 8:02:33 AM PST by kabar
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To: IBD editorial writer

The Fed will never allow privatization of SS for the sole fact that it would deny them revenue, and take away their political “football” as a social engineering tool. I would be really worried with them taking over private retirement funds, and privately funded pensions (IRA’s, 401K’s, RR, etc.).


3 posted on 01/16/2013 8:06:57 AM PST by factoryrat (We are the producers, the creators. Grow it, mine it, build it.)
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To: IBD editorial writer

A local Reno station said that when new 2013 paychecks are calculated, that over $200 BILLION would be ‘sucked out’ of the American economy.

Funny how there was NEVER such a story when over the past 2 years that same $200 BILLION was SUCKED OUT of the Soc Sec fund itself. Especially when millions were being dropped off long term unemployment & switched over to SSDI by the Gederal authorities.


4 posted on 01/16/2013 10:18:14 AM PST by ridesthemiles
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