Re: SS Surplus and General Revenue; Response to Roy Bird

[Javier Jimenez <jimenj@yahoo.com>]

>>>>>>>>>>> Roy Bird wrote:
I think the first priority should be to prevent politicians from
looting the "trust" and putting the money into the "general" income.
If each individual "looted" their savings and checking accounts
for vacations, gambling and drinking, they would not have a sound
financial policy and would soon run out of money.  I'm sure you
get the point.
<<<<<<<<<<<

The goverment use of the SS surplus money is the only way the trust
fund can generate income; otherwise, the money would sit in a vault
losing value to inflation.  When you understand this, you can begin
to see the flawed nature of the SS scheme.  Only the government
can borrow that money; thus, future generations not only have to
fork off money to support future retirees, but also have to fork
off the money to pay for the obligations accrued by previous
politicians.

This is a game with no end.  Today's politicians use the surplus
to fund their spending programs that are popular to today's voters,
future generations get stuck with the bill; and the cycle goes on
and on.  On the other hand, if the SS surplus funds are just left
on a vault, not only does SS assets depreciate, future retirees
will receive even lower benefits; thus, lower return on their SS
contributions.  As you can see, investing in government does nothing
to generate wealth, just debt that has to be repaid by the future
taxpayers that today have no job, no voice, and no vote, our
children.  Privatization will end this game by investing in the
only vehicle that can generate wealth and improve the freedom and
security of retirees, the private financial markets.

Read the Cato Institute proposals for further details at
www.socialsecurity.org.