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View Diary: Should Americans Forgive the $2.5 Trillion Borrowed From Social Security? (181 comments)

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  •  SS Trustees (8+ / 0-)

    in each report give us 4 scenarios.

    The way you wrote your diary was as if they issue one scenario.

    They do low cost, intermediate cost, high cost and a stohastic model. Its important to note that in the low cost scenario the Trust fund is not depleted thru 2090. That assumption is based on moderate growth in:

    Workforce growth of .5% or higher, currently at .95%
    Wages, can we raise the min wage?
    GDP growth of 2.8% or higher

    And widespread job creation.

    The 2035 date you cite is reliant on the most conservative estimates of Workforce growth: .2%-.3%, GDP growth of 2.3%, and maintaining the current 20-25 million people looking for work, essentially 20 more years of recession.

    I truly believe that the only thing wrong with SS is the bad economy.

    TnR.

    FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

    by Roger Fox on Sun Dec 02, 2012 at 08:28:59 PM PST

    •  Yes you are correct. I looked at all that and I (4+ / 0-)

      saw a timetable that was even shorter than what I quoted.  It's based on funding from payroll tax only. For some reason it excludes interest earned by the accumulated balance.  My main concern is adequate funding and repayment of the loan.  At the same time, the program should be protected as Al Gore used to say with his lockbox.  It's on the budget today.  Taking it off has pluses.  If it runs at a deficit in the future the funding question remains.  As long as it's on the budget, the revenue that comes in is exposed to a "free-for-all."  There's nothing to prevent it from being used for something else

      "Those who deny freedom to others, deserve it not for themselves." - Abraham Lincoln

      by leftreborn on Sun Dec 02, 2012 at 09:16:42 PM PST

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      •  YES! (4+ / 0-)
        At the same time, the program should be protected as Al Gore used to say with his lockbox.
        In this, Al Gore was absolutely correct!  It's one of the smartest things he talked about during the 2000 presidential "debates" - where political pundits said Dumbya "won."

        I never did figure that "judgment" out; I thought the pundits lost their minds, and had some magnificent rants in my journals about how I couldn't understand how anyone would vote for anyone that stupid since I thought he'd invade Iraq to finish his daddy's war and we'd go into a recession if he were elected.  [Well, I got two right.  That is not comforting.]

        I'm sick of attempts to steer this nation from principles evolved in The Age of Reason to hallucinations derived from illiterate herdsmen. ~ Crashing Vor

        by NonnyO on Mon Dec 03, 2012 at 02:40:34 AM PST

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      •  "Interest earned by the accumulated balance..." (0+ / 0-)

        I have a weak grasp of all of this stuff but my understanding is that the interest earned by the accumulated balance of the Trust Fund can also be described as interest due from the American taxpayer/borrower.

        I realize that the US budget is not like a household but it seems apparent that the US has been spending more than its revenues+borrowing from SS Trust Fund+borrowing via US Treasuries.  Once the Trust Fund is depleted then it becomes a liability that must be repaid through either increased revenues or increased borrowing via US Treasuries.  Or, of course, changes need to be made.

        My big question is how the SS payments to retirees are accounted for.  Do the calculations end once the payment is sent out of is that payment tracked as it enters the economy and have a multiplier attached to it?  A retiree on a fixed income is guaranteed to spend that money quickly and locally.  That money is not launched into the sun - it enters the local, American economy.  Any ideas on that topic?

        Please do not be alarmed. We are about to engage... the nozzle.

        by Terrapin on Mon Dec 03, 2012 at 09:37:31 AM PST

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    •  It may not be the only thing, (2+ / 0-)
      Recommended by:
      JeffW, Roger Fox
      I truly believe that the only thing wrong with SS is the bad economy.
      but it's far and away the biggest thing.

      Renewable energy brings national global security.     

      by Calamity Jean on Mon Dec 03, 2012 at 08:45:22 AM PST

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