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  • From: "Lynda" <lurine AT com-pair.net>
  • To: <homestead AT lists.ibiblio.org>
  • Subject: Re: [Homestead] As I foretold you ...
  • Date: Fri, 26 Mar 2010 11:31:35 -0700

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.
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