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Posted by kpete in General Discussion (1/22-2007 thru 12/14/2010)
Mon Dec 06th 2010, 11:28 AM
taibbi:

Social Security was never the cause of the nation's debt problems. This issue dates all the way back to the Eighties, when Ronald Reagan hired Alan Greenspan to chair the National Commission on Social Security Reform, ostensibly to deal with a looming shortfall in the fund. Greenspan's solution was to hike Social Security tax rates (they went from 9.35% in 1981 to 15.3% in 1990) and build up a "surplus" that could be used to pay Baby Boomers their social security checks 30 years down the road.

They raised the SS taxes all right, but they didn't save the money for any old Baby Boomers in the 2000s. Instead, Reagan blew that money paying for eight years of deficit spending and tax cuts. Three presidents after him used the same trick. They used about $1.69 trillion in extra Social Security revenue (from the Greenspan hikes) to pay for current-day goodies, with the still-being-debated Bush tax cuts being a great example. This led to the infamous moment during Bush's presidency when Paul O'Neill announced that the Social Security Trust Fund had no assets.

Well, duh!
That is what happens to a fund, when you spend 30 years robbing it to pay for tax cuts for Jamie Dimon and Lloyd Blankfein. It will tend to get empty. But of course this wasn't presented to the public as being the consequence of too many handouts to wealthy campaign contributors: this was presented as a problem of those needy goddamned old people wanting to retire too early and being just far too greedy when it came to actually wanting their Social Security benefits paid out.

And so in all seriousness none other than Alan Greenspan proposed back in 2004 that the "social security problem" be rectified by means of reforms that should sound familiar to those reading the news of late: raising the retirement age and cutting benefits.

http://www.rollingstone.com/politics/matt-...
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kpete
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Freedom in Love Series
You can reach my art gallery at http://www.kpetestudio.com


I long for meaningful discussion of our shared values as Americans; I fear only the sound of silence. In the spirit of progressive hope, and while honoring tradition, I poured out my life, heart and soul into the hope of showing the spark of democracy within the paint. I submit my deep longing for the fireworks of a greater democratic deliberation, one that serves us all, as the hoped for result of the sparks in "Freedom in Love."

kpete

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