Friday, January 14, 2011

They've been warning us for thirty years

Yes, they have been warning us for over thirty years now, and just like the drunk who parties on, the hangover eventually arrives. America's social security hangover is past the horizon and is now on final approach.
America's social security collapse
"Over 75 years, Social Security faces a deficit of around $6 trillion. To make Social Security permanently solvent requires an extra $15 trillion," said economist Andrew Biggs, deputy commissioner of the Social Security Administration during the Bush administration.

But the first chunk of that comes in in just a couple of years when the federal government has to start paying off the $2.5 trillion it owes the Social Security Trust Fund, which is nothing but a pile of IOU's. That's because the federal government borrowed all that money and spent it, meaning younger taxpayers will have to make it up.

“The Social Security Trust Fnd means the government has to raise taxes or borrow money to repay Social Security,” said Biggs, now a scholar at the conservative American Enterprise Institute. “It’s not a store of money like Fort Knox is."

Will Rogers (about the same time as social security was first instituted) famously said, "a million dollars here, a million dollars there? The first thing you know, you are talking real money." That remark was made in response to the manner in which congress of that day was spending money.
I doubt that Mr. Rogers ever even heard the terms billions or trillions.

It's already too late, the American carriage of wasteful spending is about to turn back into a pumpkin. People have been trying to tell us since Lyndon Johnson and his era first began robbing social security to pay for his war on poverty and his proposed "great society."

Well, we paid for it for the past forty years and that paying for it with money that we didn't have, is what got us to where we are today. We have orphaned an under class of millions. Millions who know no other existence than government subsidy. And we no longer have the means to steal from our future to provide it for them and their subsidized existence. And now those who have worked a life time on the promises that what happened to their grandparents would never happened to them? Well, they are about to learn differently.

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