In 2010, Social Security actually paid out more than it took in. The reason this happened can be summed up in three letters - P-BO. The specifics are bit harder to assess. Fewer workers means less tax being paid into the system for sure, but unreported cash deals contribute as well. Also illegal aliens, salt of the earth that we all know they are, may not be paying into the system for doing the construction jobs Americans won’t do.
As we continue our economic decline under Dopealus Maximus who has managed to fill his entire administration without including anyone who has successfully held a private sector job. If ever there was a case for a class action discrimination suite, it seems to me, private sector employers and employees could successfully bring one against the P-BO administration.
I saw something shiny and veered off point for a second there. I’m back. As we continue our economic decline under Dopealus Maximus, the Social Security intake to payout situation is likely to get worse. We’re entering the bubble where more and more people are eligible to draw Social Security and fewer and fewer people are working to pay those benefits. If you believe there is lockbox somewhere in Washington DC that has your name on it with your Social Security money in it, I’ve got three mint Ferraris just back from Japan that I can sell you. See the post two under.
So Social Security, like everything else under the numbskull regime, is a mess. What’s the P-BO’s answer for clearing up the mess? Simple, stop paying into the Social Security fund altogether. How else would you fix a problem? The first thing you always do is make the problem worse. Then you make it crisis. Then you hire a “commission” of old fart retired Washington insiders who have contributed to creating the crisis to come up with a plan for fixing the crisis they created. Then you ignore the commission’s recommendations. Sound familiar?
The P-BOs idea for insuring Social Security and buying votes is to have people stop paying into the system. He wants to extend the payroll tax holiday that has been in place for a year. Fine, I’m all for it. Cut it, burn it, stomp it into the ground, throw it out, and never bring it back. Create accounts for young people to pay into that they own at age 65 or whatever.
None of that will ever happen though. There’s a reason the P-BO wants to cut the payroll tax. He knows the Republicans will have to, at some point, agree to raise taxes to cover the shortfall he is now creating. You cannot not pay into the system for years and then expect draw funds from the system down the road.
So the Republicans face a dilemma. They can do the responsible thing and say, “Look if you expect to draw from the system down the road, you need to start paying into the system now.” Or they can extend the tax break now, then raise the tax later. That option will be the most onerous, because whenever the tax goes up, you can bet there will be fewer people working and more people drawing from the system.
Think of the Social Security fund as an egg timer. Instead of sand, it has bags of cash that slip through a funnel to retirees below. The system is fine as long as there are enough workers at the top to keep throwing bags of cash in that find their way to the retirees at the bottom. For the last year, Washington has decided that no more cash needs to be thrown in at the top. Now the P-BO says he wants to extend that idea. All the while the bags of cash are continuing to flow through the funnel and out the bottom.
As more and more workers head to the bottom of the timer and there are fewer and fewer workers at the top to continue the flow, it won’t be long before there is nothing left to flow to the bottom. That means our egg is done. Maybe we should call our egg timer a goose timer, because with it, we are surly cooking our own goose.
Drudge had this under the headline: Student beaten for sneakers. Why did I know before I ever opened the page that a gang of blacks would be beating up a white kid? Hate crime? Naaaa. Yes this is one post racial country after the P-BO. Revs Jesse and Al, nowhere to be seen.
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