Sharron Angle is correct about the optional privatizing social security. Current estimates say that social security will run out of money around the year 2042. So, my kids and grand kids probably will never see a social security payment.
But if you think Social Security is a big thing, then why don't teachers in Nevada pay into Social Security? Why don't many police officers and firefighters across the country pay into Social Security? If police, firefighters and teachers don't have to pay in, then why should anyone else be forced to pay in? Why can't everyone else opt out of social security and provide retirement benefits for themselves?
Yeah, there really is no good answer to that.
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Social security will run out of money long before 2042. In just a few years the program will begin paying more in benefits than it collects in taxes. This means that it will have to start cashing in the "assets" in the "Trust Fund".
ReplyDeleteProblem is, the Trust Fund is essentially the same as the suitcase at the end of the movie Dumb and Dumber. The Trust Fund's assets consist entirely of IOU's from the federal Treasury.
In other words, all assets in the Trust Fund represent liabilities to the federal government. All of the excess money collected by social security over the years was spent on other programs by Congress, which promised to pay it back. So the Trust Fund represents nothing more than a claim on future tax increases and/or spending cuts.
In order to honor the IOU's in the Trust Fund, Congress is going to have to impose a combination of tax increases, spending cuts and sale of government assets. There is no other way, without cutting benefits (which Congress may also do at any time - see no less than the Supreme Court has ruled that you have no property right to your social security benefits, they exist at the whim of Congress). There is no secret stash of cash available to pay social security. There is no cash in the Trust Fund, only IOU's that the federal government has not made any provision to pay back.
The New York Times reported that Social Security will pay out more than it takes in this year. Sharron Angle is right. For a more detailed analysis on this, please see: http://moveonreid.wordpress.com/2010/06/18/sharron-angle-re-social-security/.
ReplyDeleteI agree with you. Harry Reid and his liberal supporters put their on their best ostrich imitation and sing lalalal and hope for the best.
ReplyDeleteThanks for stopping by Jeanette and Mike C.