Tuesday, January 5, 2010

Bone Dry

The fund is bone dry today. You're basing your argument on the idea that these current Social Security taxes can simply be redirected into the retirees' checks and everything will be fine and dandy. Money can't be spent twice in two different places at the same time. All the SS taxes coming in have already been committed to other parts of the budget. They can't be reallocated without causing a shortfall elsewhere.

Even a total cut of all military will not solve this problem. If defense spending was zero ( an impossibility ), the US would still need to add new borrowing to cover the gap between taxes and promised benefits. You could add another 50 million low paid service workers to the population and their social security taxes would not close this gap.

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