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["Lynda" <lurine AT com-pair.net>]

1)  There have been several attempts to change the law and make SS a savings 
account.  They have failed because whichever party was in power at the time 
didn't like that idea.  After all, you put it in a savings or retirement 
fund account and then they can't pump up the General Fund with the $$ and 
spend still more money.

2)  they don't need to increase the rate, they only need to lift the cap.

Lynda
----- Original Message ----- 
From: <Clansgian AT wmconnect.com>
> > IF the government had any savings (which it doesn't), .....
>
>
> > >As of today, Social Security is now taking in less money than it pays
> > out (a >number of years ahead of time).  The politicians have already 
> > stolen
> > the money >from the lockbox, and left an IOU.
>
>
> This is a perennial saw, that some evil slimy politicians have been 
> dipping
> their hand in the cookie jar when they should have left SS funds alone!
>
> True that the government doesn't have any savings but that's primarily
> because it would be against the law for them to have any.  The way the
> government is structured (and always has been) ALL money taken in as taxes 
> must be
> disbursed.  So we have been taking in a surplus of SS money since the rate
> went up hugely in the 1970's and by law the only thing that could happen 
> to it
> was for it to be spent.  SS didn't need it to meet obligations so it was
> lent to the general fund with the understanding that at some point in the 
> dim
> and distant future the general fund would repay it with interest.
>
> There never has been a kitty or lock box of SS funds.  It would have been
> illegal for there to have been.
>
> Now, as pointed out, this year (this month actually) for the first time
> since the Big Fix in the 70's, SS is disbursing more funds that it takes 
> in.
> This is a permanent corner we have rounded, unless the rate increases
> dramatically, the SS will never again take in as much money as it has 
> promised to
> dispense.  For a while this difference would be made up by the money the
> general fund owes the SS fund, IF, of course, the general fund had any 
> money.
> Which it doesn't.
> </HTML>
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