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Social Security’s Implosion Continues

Crumbling quickly, thanks to the Obama economy.

by
Tom Blumer

Bio

May 15, 2012 - 12:17 am
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A few years ago, the Social Security system going cash-negative, especially so quickly, might have triggered the recognition of a widely acknowledged crisis. I thought it would be treated as one in a column three years ago. It hasn’t happened, even though its legitimacy as a genuine crisis is beyond reasonable dispute. Why not? I see only two reasons: A profoundly far-left Democratic administration, and a supportive and at least as far-left establishment press. This tipping point could not have occurred in a Republican or conservative presidential administration without the press and the left going into hysterics. If Barack Obama loses in November, I expect that the crisis will magically move to the front burner.

The left’s abandonment of anything resembling common sense is proceeding at a rate at least as fast as the nation’s fiscal meltdown. An ever-shrinking pool of liberals understands the basic notion that the perpetuation of their precious entitlement programs depends on a consistently robust economy to generate the tax collections necessary for its funding. Yet those who most vocally applaud the breakneck expansions of food stamps, wish to return to the traditional incentive-barren welfare as we once knew it before its reform in the mid-1990s, and most of all praise the inevitable cradle-to-grave control of health care inherent in ObamaCare, are among those who attack the nation’s successful job and taxable income creators the most stridently. Where’s the money for all of this government largesse going to come from if productive people — more properly phrased, if even more of them than have done so already — decide that working hard isn’t worth it?

Bill Clinton, for all his considerable and impeachable faults, understood the fundamental importance of having a strong economy. That understanding enabled him to let go of HillaryCare in 1994, and ultimately convinced him after a great deal of kicking and screaming into acquiescing to welfare reform. These moves, combined with an ineffective opponent, ensured his reelection in 1996. Clinton signed on to a capital gains tax cut in 1997 and signed off on the GOP Congress’s balanced budget plan formulated by then-Ohio Congressman John Kasich and pushed through by then-House Speaker Newt Gingrich. For better or worse (I believe worse, but that’s for another day in another column), the booming economy which followed saved Clinton’s presidency in 1999.

Barack Obama, his administration, and his core supporters either don’t understand the importance of having a strong economy, or don’t care to. If it’s the former, they’re merely dumber than a box of rocks and really believe that their regime of reckless spending, rhetorical excess, and regulatory overreach will be consequence-free in the long run.

It’s far more probable that Obama and his inner circle know full well that they are wrecking the very entitlement programs they profess to love so dearly. They have convinced themselves that when it all falls apart and after the dust settles, they’ll have their hands more firmly on the levers of power, which to them seems to be all that really matters. We obviously can’t afford to test that belief, and we’re running out of opportunities to prevent it.

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Along with having a decades-long career in accounting, finance, training and development, Tom Blumer has written for several national online publications primarily on business, economics, politics and media bias. He has had his own blog, BizzyBlog.com, since 2005, and has been a PJM contributor since 2008.
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