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Author: SeattlePioneer Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 60455  
Subject: Re: A fix for social security and medicare Date: 3/16/2007 10:32 AM
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<<Goofyhoofy is depending on Gen X, Y and Z to be willing to continue to send their money in to Social Security

Yes, I am. I also expect them to pay their income taxes, even though they disagree with how the money is spent. I'm guessing they will even pay their credit card bills, even though they think the rate is too high.

even though a large portion of those generations don't expect the programs to be there for them.

I'm not surprised. With liars such as yourself running around screaming "bankrupt" (a lie) and "Ponzi scheme" (a lie), and with the complicity of the right-wing media, you have managed to undermine one of the great programs of American history, and one which has served the populace well for nearly a century. It is perfect? No. I never said so. Does it deserve to be dismantled, as you and your radical lunatic fringe theories suggest? Absolutely not.

>>


Your expectation that people will be willing to send ever larger amounts of money to fund a program they don't expect to benefit them contains a large element of uncertainty in my opinion. And of course if they choose to do so the mostly unfunded nature of these programs exposes them to failure, just as I have described.


You have suggested that these programs are financially sound except for the need for "minor tweaking" (further tax increases) but efforts to increase taxes will inevitably expose these programs to the risk of radical revision. Whether you can convince Gen X, Y and Z to continue paying for the retirement of others when they are convinced those programs will not be there to pay benefits for them is an interesting question.

At a minimum, I expect that any tax increases approved will be twinned with further means testing of these programs, which will vindicate the worries of Gen X, Y and Z that these programs will not pay off for them. This will expose the nature of these programs as welfare programs for the financially incompetent, which will undermine them further.



In the end, they will be seen to be a house of cards, with significant risk of collapse.


You can deny that all you like Goofyhoofy, but the mostly unfunded nature of these programs creates the risk of failure because they are Ponzi schemes in the end. Ponzi schemes fail when the hidden nature of the financially unsound nature of the program becomes exposed, and people refuse to throw more good money into paying people who "invested" early. That's just the risk Social Security and Medicare are facing.


You can deny the Ponzi scheme nature of these programs as much as you like, but that essential nature is what causes the risk and prospect of collapse of these programs.



Seattle Pioneer
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