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View Diary: No Cuts to Social Security, Medicare and Medicaid (173 comments)

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  •  It shouldn't be 'sitting' anywhere (0+ / 0-)

    It is impossible to save money in the amounts we're talking about. The SS trust fund is basically a backdoor tax increase on younger workers to pay for the boomers. This is probably OK, but I wish it would be explicitly stated so we know what we're getting vs what we're paying.

    (-5.50,-6.67): Left Libertarian
    Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

    by Sparhawk on Fri Nov 04, 2011 at 10:04:30 AM PDT

    [ Parent ]

    •  You're right. They should privatize it. /snark nt (3+ / 0-)
      Recommended by:
      Puddytat, 3goldens, Matt Z
    •  That's just not true (3+ / 0-)
      Recommended by:
      3goldens, Dem Beans, bigrivergal

      Social Security Payroll taxes were massively increased under Ronald Reagan to increase the SS deficit.  Boomers were paying into their own future retirement as well as for existing retirees.

      Social Security is set up so the working generation pays for the benefits of the retired generation.  That changed under Reagan to ensure there would be enough funds when the Boomers retired.  So, essentially, the Boomers double payed.

      There already is class warfare in America. Unfortunately, the rich are winning.

      by Puddytat on Fri Nov 04, 2011 at 10:50:24 AM PDT

      [ Parent ]

      •  You cannot "save" money this way (0+ / 0-)

        The Boomers did not suffer any reduction in their purchasing power due to "saving" this money, because the money's removal from circulation resulted in deflation.

        If the trust fund had purchased some other asset (like foreign bonds) this would not be an issue, but since the bonds were US bonds there was no sacrifice of purchasing power by the boomers. No money was "saved".

        Like I said, it would be more honest to never have had a trust fund and just pass a tax increase to cover the boomer's expanded needs. As it is, redemption of the fund is a sneaky way to take purchasing power from younger workers via inflation and increased general fund taxes.

        (-5.50,-6.67): Left Libertarian
        Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

        by Sparhawk on Fri Nov 04, 2011 at 11:00:25 AM PDT

        [ Parent ]

        •  WTF? (5+ / 0-)
          If the trust fund had purchased some other asset (like foreign bonds) this would not be an issue...

          What's wrong with "buy American"?  Foreign bonds are safer?  Actually T Bills are the safest bonds world wide.

          There already is class warfare in America. Unfortunately, the rich are winning.

          by Puddytat on Fri Nov 04, 2011 at 11:02:54 AM PDT

          [ Parent ]

          •  It isn't a question of safe (0+ / 0-)

            By buying dollar-denominated assets, the trust fund created a situation in which the boomers didn't lose any purchasing power in exchange for their 'savings', because the money was just removed from circulation and price deflation occurred. Because of this dynamic, the redemption of the trust fund is basically a tax increase on younger workers in the guise of inflation.

            By buying foreign bonds, it would have required the boomers to generate exports in exchange for their retirement savings. Then, they can import to cover the differential when they retire (of course, they are at risk of sovereign default in that case as you point out).

            (-5.50,-6.67): Left Libertarian
            Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

            by Sparhawk on Fri Nov 04, 2011 at 11:14:40 AM PDT

            [ Parent ]

    •  The overpayment of SS premiums (1+ / 0-)
      Recommended by:
      bigrivergal

      was offset by income tax cuts. The answer to that is not to raise SS premiums again or to cut benefits - it's to raise income taxes. And cut the military, and pump up the economy. SS is not what we should be worrying about now.

      We decided to move the center farther to the right by starting the whole debate from a far-right position to begin with. - Former House Majority Leader Tom DeLay

      by denise b on Fri Nov 04, 2011 at 03:39:50 PM PDT

      [ Parent ]

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