No. of Recommendations: 2
<<There is a name for people who point out that SS has NEGLIGIBLE real reserves and will shortly go BANKRUPT but don't point out that those statements are also true for virtually all levels of government. They are called flim-flam artists who are trying to the screw the working class out of promised benefits they have been paying for their entire working careers.

Most government budgets are adopted year to year. They are funded or not, increased or cut.

Social Security is not like that, and comparing it to other government programs that are is flim flammery.

Suppose a Congress decided to free Gen X, Y and Z from payroll taxes, and allowed Social Security to pay off all promised benefits out of the assets of the system. Obviously, without new tax revenues, money for benefits would run out after a few months or years.

That's a dishonest system, in my opinion. Insurance executives would go to jail were they to try such a thing.

But at least you acknowledge that Social Security is virtually unfunded except for current tax revenue (a Pay as You Go system).

Intecst compared Social Security to an insurance plan which IS fully funded. Such programs are supposed to be able to pay off all their current obligations out of current reserves.

That is the system Social Security ought to be. But of course politicians can't help spending any reserves, so it's always bound to be on the edge of financial collapse.

Seattle Pioneer
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