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1 Who Borrowed social security we paid in? on Thu May 31, 2012 12:53 am

gypsy


Moderator


Posted: Thursday, April 28, 2011 12:15 pm | Updated: 12:44 pm, Thu Apr 28, 2011.

9 comments

President George W. Bush made a shocking assertion back in 2005 when he was pushing to privatize Social Security. “A lot of people in America think there is a trust,” he said, “that we take your money in payroll taxes and then we hold it for you and then when you retire, we give it back to you. But that’s not the way it works. There is no trust fund — just IOUs ….”

Actually, working Americans have paid so much in Social Security payroll taxes during the past three decades that they have built up a $2.6 trillion surplus in the account. That money should make the system strong enough to cover the current level of benefits for the next 26 years. In the interim, a prudent government could restructure the program for the rest of the century, perhaps by means-testing benefits and rejiggering contributions.

But, unfortunately, Bush was right. In 1983, Congress and the Reagan administration adjusted Social Security taxes and benefits to put the program on an even keel that began to build up a huge surplus for investment. But Congress decided to “borrow” the surplus instead of investing. They’ve been using it to help pay for things that have nothing to do with Social Security, things the political establishment and tax-averse Americans wanted but didn’t want to pay for: invasions, education, highway repairs and so on. And, without giving any thought to paying the surplus money back, the federal government has been trading it for special Treasury bonds that politicians used to assure us were safe in a lockbox.

Just IOUs. In a lockbox.

They are, however, IOUs that are supposed to be backed by the full faith and credit of the United States. So this year, as the Social Security Administration is beginning to fall short of what it needs to pay retiree benefits, it is cashing in $45 billion of the bonds. And because the country is upside down in debt, it has to borrow the $45 billion from China or somewhere else to make older people’s ends meet. Those maneuvers will presumably continue until 2037 unless the system is adjusted in the meantime or Uncle Sam’s credit line runs out.

It would be nice if we could drag the past five presidents and all members of Congress since 1983 into court and squeeze the $2.6 trillion out of them. But we can’t. We elected them, and they did all the borrowing for us. Given the lack of attention we self-governing Americans paid over all those years, we would be wise not to get too huffy about the situation. According to a recent poll conducted for Investor’s Business Daily, only 40 percent of us realize that the Social Security trust fund is composed of IOUs.

So the politicians who engineered this government malpractice get away with telling two radically different stories, both of which are sort of correct.

Republicans say the Social Security program has to borrow money to stay afloat, making it a key part of the national debt crisis. Democrats say Social Security is fully funded with a huge surplus, and so doesn’t contribute to the debt crisis.

Senate Majority Leader Harry Reid said on “Meet the Press” the other day that talk about a Social Security financing crisis is “something that is perpetuated by people who don’t like government.”

Perhaps. But that group of people could expand as Congress tackles the debt crisis, everybody gets a peek in the lockbox, and folks in Washington decide whether our Social Security tax payments really have been borrowed, or stolen

http://www.sentinelsource.com/opinion/editorial/who-borrowed-the-social-security-taxes-we-paid/article_691d6976-e4a1-5d21-96d3-aa8871f86c92.html



Last edited by runawayhorses on Thu May 31, 2012 2:01 am; edited 1 time in total (Reason for editing : added link)

2 Re: Who Borrowed social security we paid in? on Thu May 31, 2012 1:15 am

runawayhorses


Owner
Need a link GYpsy

3 Re: Who Borrowed social security we paid in? on Thu May 31, 2012 1:19 am

gypsy


Moderator
oops! I copied, but forgot to include the link..now can't find it, so does everyone have to provide a link?//I will keep searching!!

4 Re: Who Borrowed social security we paid in? on Thu May 31, 2012 1:30 am

gypsy


Moderator
What president ist borrowed from social security - what us ...
Which president took money out of the social security trust fund? First president to borrow from social security. Who was the first president to borrow money from the social ...
www.xmediapartners.com/...borrowed_from_social_security.

think this is it!



Last edited by gypsy on Thu May 31, 2012 1:32 am; edited 1 time in total (Reason for editing : shows a blank now)

5 Re: Who Borrowed social security we paid in? on Thu May 31, 2012 1:37 am

runawayhorses


Owner
gypsy wrote:oops! I copied, but forgot to include the link..now can't find it, so does everyone have to provide a link?//I will keep searching!!
Is this it?

http://www.sentinelsource.com/opinion/editorial/who-borrowed-the-social-security-taxes-we-paid/article_691d6976-e4a1-5d21-96d3-aa8871f86c92.html

6 Re: Who Borrowed social security we paid in? on Thu May 31, 2012 1:43 am

gypsy


Moderator
Thank you yes it is!! I thought it was an eye opener! forgot to make sure the link was there,most are at the beginning,or end.. Thank You ,Tyler!

7 Re: Who Borrowed social security we paid in? on Thu May 31, 2012 1:58 am

runawayhorses


Owner
OK good, you're welcome. :)

I havent read it all yet but I will. :)

8 Re: Who Borrowed social security we paid in? on Thu May 31, 2012 2:10 am

gypsy


Moderator
Something I would like to say.. I don't blame all of it on republicans,but most of it, yes

they have had control much more that Dems..I do wish the dummies would work together. I think our President has bent over backwards to work with his constituent..now it is fighting time again!! Romney is so out of touch with real people,he is so superficial! no personality.. reminds me of Ken Barbie

let me be specific..I don't like him,,I think he is a fool, flip flop liar!

9 Re: Who Borrowed social security we paid in? on Thu May 31, 2012 2:43 am

runawayhorses


Owner
I think Obama has tried what he felt was best for this country, its only reasonable to think that he has, I have no reason to think otherwise. But that said there will always be people that think he has other motives. Why? because its a way to discredit him so someone else can be in-charge, its the American way of doing politics.

No matter who will be the next president this will not stop, things will not change because someone else is new. The problems this country face now will not be corrected by a new president, because he is powerless to do anything about it. The problems this country face cannot and will not be solved as long as no one has the power to change anything. Decisions can not be put into action because everyone has to vote for the decision and they all have there own agenda's that are in no way related to or relevant to the actual problem. There reasons are about money and political power. People can and are bought to vote a certain way which has nothing to do with what is best for this country.

So this is why I say the country will not change and fix its problems because of who the president is or what party they support.

10 Re: Who Borrowed social security we paid in? on Thu May 31, 2012 3:18 am

gypsy


Moderator
runawayhorses wrote:I think Obama has tried what he felt was best for this country, its only reasonable to think that he has, I have no reason to think otherwise. But that said there will always be people that think he has other motives. Why? because its a way to discredit him so someone else can be in-charge, its the American way of doing politics.

No matter who will be the next president this will not stop, things will not change because someone else is new. The problems this country face now will not be corrected by a new president, because he is powerless to do anything about it. The problems this country face cannot and will not be solved as long as no one has the power to change anything. Decisions can not be put into action because everyone has to vote for the decision and they all have there own agenda's that are in no way related to or relevant to the actual problem. There reasons are about money and political power. People can and are bought to vote a certain way which has nothing to do with what is best for this country.

So this is why I say the country will not change and fix its problems because of who the president is or what party they support.

The only motives!! is America. If people like Romany run we need to>> SCREAM!!!

11 Re: Who Borrowed social security we paid in? on Thu May 31, 2012 8:13 pm

SSC


Admin
At least Romney is bringing a success record to the table, Obama's little Senator stint wasn't very impressive, and now out the blue comes his on admission to drug and alcohol use, what a wonderful role model. Besides every time he opens his mouth he is apologizing for a gaff, this week he insulted Poland and has to back step. One thing is for sure, we don't own the US , China does and it is only get worse with this administration.

12 Re: Who Borrowed social security we paid in? on Thu May 31, 2012 8:37 pm

gypsy


Moderator
what record ?bankrupting companies, and putting people out of work?sending jobs over seas as governor, plus his state was like 47th in the most jobless and broke state ,that is not a record to be proud of,even his own state don't like him, his fellow repubs don't like him..,

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