GOP Social Security Rip Off Is Not So Apparent

02/03/2005

Paul Munnis

We all know that the Bush deficit is large and getting larger. Most of us know he has pledged to cut it in half over the next four years. We also know he is on the hunt to cut back or eliminate Social Security.

Here is where we have to pay close attention: Social Security is presently taking in more than it’s spending. It has been for years. Congress takes the cash that comes in to Social Security and spends it. Then they replace the Social Security cash with an IOU to the Social Security Administration for future payments.

If Bush manages to cut back the Social Security benefits for the out years then he can rip up the Social Security IOU’s and declare his deficit problem solved. He can do this while keeping the present tax on Social Security and while spending the money freely as it comes in, knowing that the IOU’s will be torn up later on. In other words he will have stolen your Social Security money.

Beware, there is much more going on here than meets the eye, for example:.

We Democrats know in our hearts that this healthcare insurance coverage crisis is turning into a big time mess. We also know that the only fix is to put in a national healthcare system. When that time comes, people will be looking for ways to fund the program. There is much government payout of insurance monies including the Medicare, Medicaid, Veterans Health Benefits, Government Workers Benefits, and other funds for government purchased private health insurance. Not to mention all of the money that the States spend on healthcare insurance. The Congress will look at all of these monies, including the Medicare money, for the out years and then try to use it to fund that national healthcare program. If we can protect the Medicare portion of the money then it will revert to Social Security as an asset and it can be used for direct payout to retirees. That itself could solve the out year funding problem for Social Security.

The GOP is full of clever accountants who will snatch your Social Security savings in a flash. Don’t let them near it. Demand that it be locked for withdrawals. No more IOU’s to the government.

Then there will be a way to turn the tails on the GOP.

We can demand that the money that the government collects plus what they owe Social Security be paid back so that we can invest that money and make it grow interest income for us. That will grow the pot and put it on a compound growth curve. It will be good for America too forming a huge pot of venture capital for loans to start and grow businesses and create jobs. Every dollar so earned will then be a dollar more for payout to retirees down the road. If Congress balks at this then we should demand that they pay a higher interest for the borrowed funds to Social Security and doing so will wipe out the shortage of funds problem for good.

If Bush wants to solve the Social Security problem then we should help him, but do it so as to enhance the fund balances and not so as to deplete them to manage the Bush deficit or to fund a future healthcare program using our Social Security money.