Some might argue — and liberals do — that the Social Security trust fund, which stored on paper all of the surpluses of FICA taxes paid in by baby boomers, could now be used to pay them the retirement benefits that can’t be gotten from their offspring. Alas, the Social Security trust fund contains nothing but a pile of IOUs in the form of Treasury claims, which in order to pay in real money depend upon hugely increasing taxation on younger workers.
But don’t take my word for that. Please, don’t. Take this official confirmation from the Clinton administration’s Office of Management and Budget in 2000:
These [Trust Fund] balances are available to finance future benefit payments and other trust fund expenditures — but only in a bookkeeping sense. These funds are not set up to be pension funds, like the funds of private pension plans. They do not consist of real economic assets that can be drawn down in the future to fund benefits. Instead, they are claims on the Treasury, that, when redeemed, will have to be financed by raising taxes, borrowing from the public, or reducing benefits or other expenditures. The existence of large trust fund balances, therefore, does not, by itself, make it easier for the government to pay benefits.
Now, that’s the truth. And it was written by Clinton’s OMB director, Jack Lew, who also happens to be Obama’s OMB director.
But in February of this year, Jack Lew wrote in USA Today that the Social Security Trust Fund is solvent until the year 2037 — surely based upon those “bookkeeping” gimmick IOUs, which he forgot to mention this time.
Republicans in Congress are working diligently to produce a real plan to modify the Ponzi elements built into the Social Security system, while the Obama administration continues to lie through its bookkeeping-gimmick teeth. And the alternative-reality left gets mightily annoyed when fiscal realists go after the most sacrosanct pillar in the liberal cathedral.
Rick Perry ought to be considered a one-man Reformation truth-squad every time he utters the phrase “Ponzi scheme” to foaming-at-the-mouth liberal pontificators.
Charles Krauthammer is also a Social Security truth-teller. In March, he wrote of Lew’s duplicitous attempt to shore up Obama’s Social Security propaganda, spelling out the Reformation’s argument in demographic enlightenment format:
But demography is destiny. The ratio of workers to retirees is shrinking year by year. Instead of Social Security producing annual surpluses that reduce the federal deficit, it is now producing shortfalls that increase the federal deficit — $37 billion in 2010. It will only get worse as the baby boomers retire.
In 1950, the worker-to-retiree ratio for Social Security was 16-1. By 2010 that ratio had shrunk to 3-1. By 2030, it is projected to be 2-1. Only in a Keynesian la-la land like the one inhabited by President Obama could this spell anything but Ponzi-scheme apocalypse.
Choices have consequences. And the millions of Americans’ choices not to bear many children, coupled with irresponsible political choices to raid the Social Security trust fund, have rendered “the greatest Ponzi scheme ever devised” just one more bitter fruit in the diminishing Keynesian economist’s orchard.
And Don’t Miss a PJTV Exclusive: “Roger Simon Talks with Perry Adviser Dave Carney About the Governor’s Stance on Social Security”