So says liberal columnist Froma Harrop. I don’t agree with her, but she puts her points well.
Tuesday, November 27, 2012
Subscribe to:
Post Comments (Atom)
Occasional comments on the economics and politics of Social Security policy by Andrew Biggs.
Blog Archive
-
▼
2012
(122)
-
▼
November
(8)
- Another Social Security commission?
- “Repeat after Me: Social Security Adds To The Defi...
- Killing Social Security With a Smile?
- New paper from the Social Science Research Network...
- New paper: “Mismeasurement of Pensions Before and ...
- New paper: “Understanding Social Security Benefit ...
- Social Security: Off the Table or On?
- Are Social Security payroll taxes regressive?
-
▼
November
(8)
About me
- Andrew G. Biggs
- I am a Resident Scholar at the American Enterprise Institute in Washington, where my work focuses on Social Security policy. Previously I held several positions within the Social Security Administration, including Deputy Commissioner for Policy and principal Deputy Commissioner. Prior to that I was a Social Security Analyst at the Cato Institute. In 2005 I worked on Social Security reform at the White House National Economic Council, and in 2001 I was on the staff of the President's Commission to Strengthen Social Security. My Bachelor's degree is from the Queen's University of Belfast, Northern Ireland. I have Master's degrees from Cambridge University and the University of London and a Ph.D. from the London School of Economics and Political Science. I can be contacted at andrew.biggs @ aei.org.
Posts
Don't miss a single fascinating post!
Blog links
1 comment:
".It's a wildly popular government program that's totally solvent until 2033.”
The word "solvent" means able to pay all liabilities from current assets. The problem is Harrop states that it is solvent until 2033. What Harrop has not stated is that those who will not benefit from Social Security prior to 2033 will contribute to it, but receive no benefits. What happens to this date if we exclude all those from the payroll tax who do not turn 65 by 2033? The date moves forward well before 2022. Then we should ask the question once again, what happens to the 2022 date if we exclude all those from payroll taxes who do not turn 65 by 2022? The date moves to about 2018. We should then ask the question once more. We would find that we would exclude basically all under age 62 from the payroll tax and benefits would have to be paid from assets or the $2.6 Trillion SS-OASI fund. Paying full benefits would exhaust the trust fund in less than five years.
So I ask the question "Is Social Security OASI" Solvent? It is not solvent, but insolvent.
The problem is that in Nestor v Fleming the Supreme Court of the United States that no person has guaranteed benefit from Social Security. Congress reserved the right to alter, change or repeal any portion of the Social Security Act without liability.
In simple and Technical terms Social Security is a Government Ponzi Scheme and is no different from a bait and switch practice used by some unscrupulous companies.
http://www.justsayno.50megs.com/ss.html
Post a Comment