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Thu 2 Sep, 2004 05:45 pm
Ah! "the National Committee to Preserve Social Security". Now there's a group that's bound to be entirly unbiased on the topic.
Thanks Edgar, I'll pass this around. There is always someone higher up trying to gamble with our social security. I profoundly hope "Privatization" never comes to pass.
Hi, colorbook. Long time no see. Fishin disagrees with your assessment, I see.
Hi Edgar, good to talk to you again. I'm Back. I've been busy with many things.
Privatization of Social Security. Another one of Bush's and the republicans simplistic ideas on the road to disaster. If you have a 401 K account that is involved in the stock market how much have you gained /lost since Bush has come into office.
Now I'm not sure privitazzation is the answer but from what I understand there is no "surplus" in the Social Security Trust Fund.
Quote:Unlike private pension funds, the Social Security Trust Fund does not hold any marketable assets to secure workers' paid-in contributions. The Social Security Trust Fund "invests" surpluses in United States Treasury bonds and U.S. securities backed "by the full faith and credit of the government".
Practically speaking, the federal government has used the Social Security Trust Fund in a way which would be illegal for any private-sector company to do - in order to help balance the federal budget, the government has borrowed money from the Trust Fund to pay current operating expenses and replaced those funds with government IOU's.
...These [Trust Fund] balances are available to finance future benefit
payments and other Trust Fund expenditures - but only in a bookkeeping sense. ... They do not consist of real economic assets that can be drawn down in the future to fund benefits. Instead, they are claims on the Treasury that, when redeemed, will have to be financed by raising taxes, borrowing from the public, or reducing benefits or other expenditures. The existence of large Trust Fund balances, therefore, does not, by itself, have any impact on the Government's ability to pay benefits. Source: FY 2000 Budget, Analytical Perspectives, p. 337
link
It seems to me that the larger problem is the continued fleecing of us by the government.
The Government has been using the SS collections as if they were taxes to be used as general revenues. They have been at least on paper issuing low interest paper to the system. The problem will come to pass when the input or collections fall below the amount to be paid out. At that time the government will be forced to pay up as they would on any note that comes due. That will occur long before the system overall is out of balance. They have been for years taking from Peter to pay Paul. But soon it will be time to pay the piper. Every ponzi scheme eventually goes down the toilet. Lockbox, I am sure you have heard of it is just a figment of our governments imagination.
au1929 wrote:Privatization of Social Security. Another one of Bush's and the republicans simplistic ideas on the road to disaster. If you have a 401 K account that is involved in the stock market how much have you gained /lost since Bush has come into office.
My 401K is up about 40%.
The "simplistic ideas" however, come from those fools that can't see anything but an either/or situation with SS like the morons that put out the press release edgar posted.
fishin'
I wonder how many that have 401K's accounts based on equity funds can say that?
Former Congresswoman Barbara Kennelly warns against
continued push for privatizing Social Security
President is expected to discuss private accounts in his convention address tonight
The anticipated endorsement by President Bush of individual investment accounts in place of traditional Social Security will come as no surprise during his convention address. There will also be no surprise if the President gives few details. Privatization plans cut Social Security benefits so it is doubtful he wants to make that part of his plan clear .
The fact the President is trying to hide is that in the "ownership society," what individuals really own is the risk. No guarantees, no security, no protection.
Privatization costs trillions of dollars in additional borrowing at a time when federal borrowing is already out of control. One recent privatization plan cost $7 trillion - twice as much as what is necessary to fix Social Security.
Privatization takes dollars out of the Social Security Trust Fund and puts it in the pockets of Wall Street. Privatization is not likely to hurt the investment community, but most of us who represent older Americans aren't worried about them. We're worried about the broad cross-section of the middle class: the teachers, firefighters, waitresses and blue-collar workers.
The President should either repudiate privatization or immediately provide exact details as to what he has in mind so all people can judge his plan.
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