Wednesday, May 04, 2005

SS Trust Fund Irrelevant

Here's an article that sheds some light on the whole Social Security Trust Fund fiasco.

In fairly simple terms it states:

that's why the Trust Fund is irrelevant. To buy the bonds in the Trust Fund
from itself, the government must get the money from somewhere. It has four
options. It can reduce other government spending. It can sell assets. It can
increase taxes. Or, it can sell bonds. In other words, the Trust Fund has no
effect­ -- zero­ -- on the government's financial situation. Let's
make it more concrete with a personal situation that many people can relate to.
Say you're planning to send your kid to college. You have ten years and think
you need $100,000. In Scenario A, each year you put an IOU for $10,000 in a jar.
At the end of ten years, you pour out the jar, swear a bit more than is proper,
and then scramble to come up with $100,000, either through borrowing, selling
assets, earning more, or spending less. In Scenario B, you skip the jar and IOU
charade and advance to the final step: you swear and scramble. The IOU charade
was irrelevant.

That's easy enough to understand, isn't it? However, it doesn't change the fact that under the current system there is NO OWNERSHIP. Ol' BC has belabored this point and will continue to do so because it's critical for the working poor and their families to have a chance.


Just a thought.

6 Comments:

At 1:32 PM, Blogger Sir Loin of Beef said...

It's nice that they are starting a trust fund for the old German SS officers. It's about time they got something.

 
At 4:50 PM, Anonymous Anonymous said...

I had that argument on my blog a few months back with a troll I picked up that just couldn't grasp that concept. I gave up trying to explain it to him.

The government "borrows" any money left over after taking SS taxes and gives itself a bond. Then it spends the overage. To cash in the bonds, they have to come up with the money from somewhere, and that would be my pocket, one way or the other.

EWG

 
At 2:01 PM, Blogger RightWingRocker said...

Wow, Beef,

Your arguments are getting more and more incoherent with every time I read a comment of yours.

Or was this simply a feeble attempt at humor?

RWR

 
At 2:43 PM, Blogger Sir Loin of Beef said...

Well, Rocker, you tell me. Am I making an argument? If it appears that I am, maybe you are the one who is incoherent. Am I joking? Well, if I am, maybe you are the one who has feeble humor. I don't understand these things. Perhaps, as brilliant as you are, could just save me the time by proof reading my posts.

 
At 1:07 AM, Blogger RightWingRocker said...

Well, Beef, since Ol' BC didn't say anything about the SS or the Nazis, nor do either of those things have to do with anything Ol' BC said about Socialist Security, then i must assume you have made a really sad attempt at humor.

Unfortunately, there really wasn't, and isn't anything funny about the Nazis or anything they stand/stood for.

Maybe you are just longing for the Holocaust to start up again? 'Tain't gonna happen here in America, so I guess you lose on that one.

RWR

 
At 10:22 AM, Blogger Sir Loin of Beef said...

Well, Rocker, he used the term SS, and I made a joke. I'm sorry you are too dense to have seen it. Actually, Ol'BC and I sort of laughed about it yesterday, so someone thought it was funny.

As for the Holocaust, I long for the day! Only I would use my power for evil to demolish nitwits and anyone I regarded to be too stupid to live. It would be a long list, but I bet I could find room on it for you!

 

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