Social Security isn't so much an entitlement as it is a pyramid scheme. My rule is that anyone who receives Social Security, and isn't willing to take a benefit cut, cannot complain about the deficit being to big.
Most economist would argue that the deficit relative to GDP is most important. "Relative to the size of the economy, this year's deficit is expected to be the second largest shortfall in the past 65 years; 9.1 percent of gross domestic product (GDP), exceeded only by last year's deficit of 9.9 percent of GDP," CBO wrote. Yes but only a small portion in '09 and '10. Again, only a small portion of the '09 and '10 deficits are attributed to Bush's health plan. $60.8 billion in '09 out of nearly $1,600 billion. In fact, remove the Iraq war and drug plan expenditures for '09 and the deficit is still well over 1 Trillion. "Four years into full operation, President George W. Bush's Medicare prescription drug program is coming in well below its projected cost" "The numbers are stark and conclusive: In 2009, the government spent $60.8 billion on the drug benefit, or far less than the annual $111.2 billion cost projected just five years ago, after the program was enacted" Bush drug plan beats cost mark - Washington Times
This is true, but the flip side is that we have to pay as we go, not borrow money and that means raising some taxes, too. The problem has to be addressed from both directions.
You can for most. My folks lived on their income their entire long lives and never even touched their considerable savings. Neither have I, so far. Most of the Boomers have been very prosperous. There are slackers in every generation, including yours, I've been observing them up close for many years. Social Security was never intended to be a retirement plan, just a safety net and subsistence income for the elderly. No one wants to see widows and old people living in boxes and in cars just because they can no longer work and have no family to depend on. Nobody lives very well on Social Security, it can't even keep them out of poverty, it just keeps them from being homeless and hungry.
We have a 99 trillion dollar unfunded liabilities according to the chairmen of the Dallas Fed. We cannot come anywhere close to taxing our way out of that. The Federal government all ready consumes 21% of GDP. It is going to consume 40% based on the growth of entitlements. Tax rates would have to skyrocket for us to meet that. I'm talking top marginal rates of near 90% and bottom rates of 25%. Our economy cannot survive without massive changes to our entitlement programs, and by changes I mean cuts.
I find it interesting that noone accounts for the FACT that much of the stimulus dollars from both Bush and Obama's plans are loan funds that will be repaid, at least in part, to the federal government. A small percentage of those funds are/were grant funds. All everyone talks about is how much the stimulus cost us, ignoring that some has already been paid back, and even more will be. No on the flipside, the law of averages dictates some company receiving stimulus loan funds will not survive and principal balances will ultimately be written off, but that percentage is relatively small. Unfortunately, it's a figure Obama will not be able to rest his hat on within one or two terms if he's re-elected. Another significant portion is represented in government backed guarantees. USDA Rural Development in Louisiana alone spent over $500 million in stimulus funds, with the majority of that being represented in guarantees that may never account for actual dollars spent unless loan recipient defaults. That figure does not account for expenditures by the 47 other state offices (some state offices are combined to represent multiple states such as MD/DE, MA/CT/RI, FL/VI, HA/Guam). Delinquency rates are relatively low even in this bad economy. I'm not suggesting the record spending is prudent or proper, but some of the "spending" is being misrepresented by opponents. Still, the way the spending is represented will be Obama's undoing, IF the right wing finds a truly viable candidate. Palin or Jindal won't get the job done even with an angry citizenship. And honestly, a big republican mid-term win might help Obama win because it brings balance back to government, which IMO is necessary. I wish there were a way to ensure no one party controlled both Executive and Legislative branches. Hated it under Bush...hated it first two years under Obama. It forces the parties to truly work together.
We damn sure can't defeat it with tax cuts! Any liability has to be addressed through increased income and cutting services BOTH. Simply cutting income and hoping for the best is stupid and had failed spectacularly already.
Social Security would be self sustaining had it had been allowed to operate as it was originally intended. The money was in trust and would have grown exponentially over the years, allowing money to be paid out while having a surplus to sustain it. Unfortunately, the Democrats (LBJ)couldn't stand to see all that money going to waste so they moved it to the general fund and spent it. I am a baby boomer who paid into SS for 40 years and I don't see it as an entitlement. I see it as my money that came out of my pocket. Obama's sole motivation was to pander to the left by screaming racism (racial profiling) when no racism was being perpetrated. Bull. Tax cuts encourage spending and small business expansion which creates jobs and increases government revenue. That's the basic preoblem with Obama's policies. He thinks he can bleed working people dry and stimulate the economy. Any alleged stimulus to this point has been fool's gold.
The Democrats? Don't be such a hack. LBJ may have been the first to raid the trust, but every congress and administration sense has followed suit. That is 5 Republican administrations and 2 Democratic administrations. That is the problem. Show me where in the Federal budget we can cut to reduce the deficit and not cut social security in a major way. I know you aren't into looking for facts, so I will give you a hint... there is nothing there. And by the way, you do realize that at the end of the day I am going to pay a crapload more in than you did, and I am going to receive no benefit. I will put you in the camp of the hypocrites. You scream about deficits and won't do what it takes to address them.
