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View Diary: Washington Post/ABC News poll: You want to do what to Social Security? (176 comments)

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  •  Please elaborate...still don't quite understand. (2+ / 0-)
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    psnyder, Simplify
    •  Social Security is mandatory retirement savings (1+ / 0-)
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      Everyone earning pay contributes some of it to the Social Security trust fund until they retire. Social Security benefits are paid out of this fund, not out of general government funds. It's a giant pool of savings. If it Social Security didn't exist (i.e. if it were "privatized"), people who wanted to save for retirement would be stuck with either keeping cash, investing on their own, or investing through private financial companies. Many would do the latter. The financial companies are salivating over that business.

      Don't know if you remember from the 2000 presidential campaign, but the Social Security trust fund is the "lockbox" that Gore was going on and on about. That's because the federal government started to borrow from these funds by trading Treasury debt certificates for them. Even more troublesome, the (about-to-expire) "payroll tax holiday" that Obama passed lowers the Social Security trust fund's intake on the promise that the government will backfill it with regular funds later.

      Anyway, you might already know all of this, but the main point is that the Social Security trust fund is a giant pool of all of our retirement savings that the financial companies want to "manage" for us, i.e. gamble with, just like they did with home mortgages.

      Government and laws are the agreement we all make to secure everyone's freedom.

      by Simplify on Tue Dec 18, 2012 at 09:50:30 PM PST

      [ Parent ]

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