Quote:
Originally Posted by ilnjscb
#1 is realistic and easy, and 2. raise taxes back to where they were, and 3. stop using defense contractors, and 4. cut all federal spending by 15% EVEN SOC SEC and MEDICARE (go back to 2003 and before levels) and 5. Call in the Clintons
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If one looks at the federal budget only as a unified whole, Social Security does indeed appear to be where the money is. Examining the budget that way is useful for analyzing broad fiscal policy, but it is a simplified, distorting view. It disregards the fact that Social Security is a defined benefit pension plan sponsored by the federal government, financed primarily with dedicated contributions of workers matched by their employers. Social Security has no borrowing authority and so does not and cannot contribute to the federal deficit. And it will be in balance for the next 26 years, even with no policy changes.
http://prospect.org/cs/articles?article=social_security_and_the_deficit