[Fred]

Social Security Peg Is a Fix Boomers Can Embrace

"Though you might have missed it, the best method for such a fix was offered by Fred Thompson this month in the Republican presidential candidates' debate. In Michigan, Thompson said that ``one of the things that could be done would be to index benefits to inflation. Index benefits to inflation for future retirees.''

According to this article the savings would be:

"`a reduction in growth.'' Inflation indexing would reduce the Social Security shortfall of trillions of dollars by more than two-thirds."

This kind of savings should be able able to unite the Supply Siders and Keynesians long enough to get this change made...

[rhombus]

You better run that by the AARP first, Fred.

[traditional1]

So far, I don't know of any other candidate who has come forth with a Plan to address the Social Security ponzi scheme to stem the shortfall that soon is coming.

In any case, the Democrats' answer is ALWAYS raising taxes, while crowing about the "mean Republicans" forcing Seniors to eat dogfood, and poor folks "starving", etc.

FRed's plan would work, but is a tough sell when the extreme rhetoric of the Lefties starts drumming on the MSM continuously.

Most Baby Boomers I know have not put themselves in a position to depend on Social Security alone for survival after retirement. Providing benefits to illegals (which the Dem's and Repub's have both indicated they could support) will exacerbate the problem even more.

[Vaquero]

I dont know what any of this means....I am fiscally impaired.

AS long as I have no choice whether to put into SS or not, I want what I paid in with a reasonable interest on that.

I oppose SS, but I want whats coming.

My parents got screwed on SS by Jimmah and the notch baby deal, and I will have to be taken out screaming and kicking if any politician tries to pull that one.(I dont assume that, that is what this is.....I have no idea what this is all about)

[DManA]

SS is a metaphor for the whole failed welfare state model. Here the country is literally going to begger itself trying to give citizens $13,000/year.

[camofilly]

Maybe, but I still haven’t heard a better idea than the PSAs. Why is everyone so adamantly opposed to citizens saving up for their own retirement? Could it be the loss of CONTROL they’ll have to deal with?

(After all, what’s the point of going to DC if not for the opportunity to wield control over the minions...)

[exit82]

Everyone is overlooking the biggest financial scam our politicians have pulled for the last 24 years.

In 1983, the SS taxes were pegged to the outgo to pay current retirees— a pay as you go system as established in 1935.

The Social Security Reform Commission was established to deal with the looming demographics of the retiring baby boom generation, which would start to draw benefits in earnest by 2011 and beyond.

So, in 1983, the Social Security taxes WERE RAISED by an amount higher than the pay as you go system that had been in place since 1936. The extra money was to be set aside for the baby boomers, so when the need came in 2011 and onward, the money would be there.

Our congresscritters then took the extra money and instead of investing it, they bought government bonds with it, which instantly gave them tens of billions of dollars more per year to spend on important pork projects to ensure their own reelection. The government gave to SS government bonds, essentially IOUs, for the excess SS funds, and these excess funds were promptly spent by Congress each fiscal year to fund current expenditures.

So, the baby boomers HAVE ALREADY PAID for their SS retirement funds.

So now, in 2011, SS goes to the government, cashes in the bonds to pay for the baby boomers’ benefits. How are the bonds paid for?

Of course, they are paid back with CURRENT TAX RECEIPTS.

So follow this closely.

Since 1983, we have been taxed in excess of the cost of the SS system, which until then had been pay as you go.

This tax money was exchanged for government bonds, which was then wastefully spent by the pols.

To repay SS in 2011 and beyond, the government will have tax the current workers to pay for the bonds that SS will be waving in its face for redemption.

So, NOT ONLY HAVE YOU PAID FOR THESE BENEFITS IN ADVANCE, BUT YOUR CHILDREN WILL PAY TO REDEEM THE SS’s IOUs FROM THE GOVERNMENT.

This means we, the American People, have paid for these benefits TWICE!

This has been the biggest fraud perpetrated on the American people in history.

And most of the pols in DC now were there in 1983.

They all need to be fired, and their Congressional pensions abolished. They can live on SS like the rest of us have to.