For John, BLUF: Social Security doesn't fix all problems. Nothing to see here; just move along.
Over at Power Line is an article by Mr John Hinderacker, esq, on Social Security. It turns out that US Social Security is not going to be self-funded out into the future.
Sorry to tell you this, Baby Boomers.
And, much as it will bite my pocket book, I think going to Chained CPI calculations is a good idea. Otherwise we will inflate ourselves into even more serious federal debt.
Regards — Cliff
The Social Security benefit has been expanded over the years to become much more than it was originally intended in 1935. Its original charter was:
ReplyDelete"An act to provide for the general welfare by establishing a system of Federal old-age benefits, and by enabling the several States to make more adequate provision for aged persons, blind persons, dependent and crippled children, maternal and child welfare, public health, and the administration of their unemployment compensation laws; to establish a Social Security Board; to raise revenue; and for other purposes, August 14, 1935; Enrolled Acts and Resolutions of Congress, 1789-; General Records of the United States Government; Record Group 11; National Archives."
Since then, it is the head of the river for all sorts of welfare payments to include a massive system of disability payments. In fact, as originally envisioned, Social Security has become much less of that today and almost overwhelmingly more of things never intended. It has become a favorite tool in the arsenal of politicians of all stripes to ladle out federal monies in exchange for voter loyalty.
Perhaps the largest incursion on the SS fund occurred under LBJ as a collateral means of funding his Great Society. So byzantine was that workaround that even today, the matter evokes energetic differences of opinion. The fact is however, the LBJ era was the final nail in the coffin of Social Security.
As a "retirement" system....which it is not and in actuality was never intended to be.....it is now unsustainable and, using good fiscal management, should be shut down immediately. Funds that were essentially gained via taxation, could easily be returned to the contributors who could then spend them as they might, or invest for future growth and returns.
It is quite telling that the vast majority of Americans and almost every liberal is firmly against turning SS into a 401k kind of program. They demand that the government administer a failed program in toto, returning to the consumer many times over what they "contributed."
The SS Trust Fund is completely "untrustworthy."
Current schemes and dreams for making the system work are nothing but flim flam, the kinds of schemes that would land an ordinary citizen in jail for fraud.
SS is done for and the sooner we all face up to the cruel reality of it, the better. One need only to look at Greece...and Rome....and other failed nation states to see where we are headed...and quite soon.
Sadly, Americans are about to learn that FREEDOM is far from free and any attempt to make it so will spell the end of freedom. It's happening now.