Tuesday, March 15, 2011

Quit Insulting Us on Social Security

Obama's OMB director says Social Security is not part of the fiscal problem. How do people in such positions get away with saying such things?

Until a few months ago, Social Security over the years collected enough revenue to pay benefits to retirees. But year after year, any surplus was sent to the Treasury and spent on other programs.

So there is no surplus. There is a pile of IOUs that has no value. The Treasury has no money to pay back those IOUs.

Now that the number of retirees is booming, Social Security has reached the tipping point at which spending on benefits exceeds revenue.

And there's nothing in the "lock box" or "trust fund" to cover the negative spread between benefits and revenue. Yet the Obama administration says Social Security is fine. Unbelievable. Literally.

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