If you read newspapers or watch TV, you must have heard that Social Security is running out of money. The fund is being depleted, there are only four workers contributing for each recipient, current revenue does not cover current benefits, in a few years the whole system will go belly-up unless drastic reforms are instituted. At least, that's what I've heard and seen.
My question is, why, oh why, would the original stimulus program want to take funding out of this rickety system by cutting a third of the employee's payroll taxes that support the system? Why would Obama's new stimulus package want to more than double down and eliminate HALF of the employee's AND HALF of the employer's contributions?
Where will the money to pay the benefits come from? Are we going to borrow another gazillion dollars from China? Are we going to print more money and pump up inflation? Are our children and grandchildren going to pick up the tab for our foolish decisions? Or, are we just going to cut the benefits?
I get that the conventional political wisdom is, by decreasing the FICA tax, consumer spending will increase, and that will spur the economy. I get it, but I don't agree with it. It didn't work with the first stimulus, but, hey, it might work this time. The only sure thing is that we will have definitely jeopardized the funding and future of the social security system.
Where are the Republicans on this issue? Where is the Tea Party? Obama and the Democrats are pummeled for being the party that loves to tax, spend, borrow, and print money. Republicans pride themselves as being the party of balanced budgets, lower debt, and a strong dollar.
Why haven't I heard a single Republican speak out on this issue? Why have no Republican presidential candidates stepped up to protect the fiscal integrity of the social security system from further degradation?
The silence from both political parties can only lead one to believe that both are willing to risk the sure danger to the social security system, in order to accept the political cover of a risky gamble to improve the economy and "lower taxes". It makes politicians look like they are "doing something" about the economy and jobs, and, as long as no one questions the wisdom of what they are "doing", they get away with it.
Unfortunately, they are not lowering your income taxes, they are lowering the FICA contributions to your retirement fund; deciding, for you, that you should spend more now, and that you shouldn't trouble your mind about the missing contributions. Don't worry, the money will somehow, magically arrive at the perfect time when you need it.
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