Ali’s blog

Mostly quant stuff with occasional digressions

Conning Americans out of their social security benefits

Posted by alifinmath on March 28, 2008

Again in the FT:

Many politicians are telling us that the resulting rise in Social Security “entitlement” payments will break the budget, so we have to cut benefits to retired people. But the politicians do not want to mention that the Social Security system has been compiling a huge surplus. Why? Because they have been using that surplus for years to hide the real size of the current federal budget deficit, allowing them to spend more and justify tax cuts for the wealthy.

Politicians understand that, with the Social Security Trust Fund surplus declining, they will no longer be able to borrow from them under the table while announcing fictitiously smaller deficits to justify continued expenditures and tax cuts. And they will have to generate funds from other sources of revenue to redeem the bonds after 2017. Rather than admit too much was borrowed recently, and must now be repaid, they want to reduce Social Security benefits. This puts much of the burden on the middle class, who created most of the surplus that has been used to hide the real size of the deficits.

Americans can’t trust their own government not to screw them blind. The US government robs from the poor to give to the rich (who have effectively hijacked the apparatus of the state). While this blatant robbery is going on, the rich-controlled mass media is busily churning out propaganda, disinformation, and red herrings around the clock. I’ve never seen this kind of banditry in any other Western country and it raises the interesting question of whether the USA today is anything more than an oversized banana republic. Certainly in terms of looting, embezzlement, corruption, and disparities between rich and poor it is.

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