Skip to Content.
Sympa Menu

homestead - Re: [Homestead] Security: homestead independence versus government dependency

homestead AT lists.ibiblio.org

Subject: Homestead mailing list

List archive

Chronological Thread  
  • From: Clansgian AT wmconnect.com
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] Security: homestead independence versus government dependency
  • Date: Sat, 30 Aug 2008 12:20:34 EDT


>
> >In the seventies my world-wise cronies and I talked exactly that same
> talk, even fully sober. ......
>
> >Part of the optimism is nostalgia colored by bad or selective memory.


Indeed, because in the 70's SS was for sure headed for insolvency.

Geezerdom of today likes to say, "We thought SS was going to tank and we were
wrong. So it's the same today, everyone points to the insolvency of SS but
it will be just like it was in the 70's and in the end it will be OK"

Not this time.

In the 70's SS was headed for insovency and that was thwarted by a massive
increase in the SS tax. So massive an increase that it created a surplus.
The
US govenment can't hold onto the money in the form of savings (it is illegal)
so instead they loaned the money to the general revenue. This created
massive
amounts of obligation based on the SS taxes that were being collected. And
now those obligations are becoming due.

SS tax can't go up that much again, that was a one time squandering of the
country's resources. Obama's removal of the the cap would only amount to a
drop
in the bucket.

The way all countries and economies in history have handled this is to let
inflation run wild and not increase the face amount of the benefits. COLA is
a
problem with that, but not a difficult one.

James </HTML>



  • Re: [Homestead] Security: homestead independence versus government dependency, Clansgian, 08/30/2008

Archive powered by MHonArc 2.6.24.

Top of Page