| BatMaxExposedWorld said: It's impossible for Social Security to go broke as long as there are more employed americans than retirees. The social security trust fund isn't the utility used to fund SS, it's just additional funds. If you don't know how the program works you should probably just refrain from commenting at all. Boehner admitted on NBC that there "is no immediate debt crisis." He actually said this. Then he goes and prolongs this pathetic, joke of a republican tactic to generate fear in uneducated americans. The debt crisis isn't an immediate problem, it's a problem but not something that needs to be focused on during the midst of a horrific global economic crisis that will probably last another 6yrs. Austerity isn't working for the Eurozone. It's OBVIOUSLY not working when you come to the realization that Europe is going into a double dip recession. Germany was better off than other European countries, it didn't experience the same fallout. Using Germany to justify austerity (which is obviously failing) is just stupid. You look like a fool who doesn't know what he/she is talking about. Balanced budgets don't meant anything. America has run on deficits for a very long time, the economy actually functions on a small deficit. That is the goal, a small deficit. Nobody is signing any clinton-era "balanced budgets." One balanced budget doesn't do anything if the year after we go back to deficits. That is our reality. Yeah, so these political threads are pretty sad. It's like fox news threw up in here lol. Good Luck! |
1) That's not how the system works, people actually pay in less in a month then they will get when retired. This can be shown by the fact that Social Security is running a deficit and does rely on the social security trust fund currently.
http://www.ssa.gov/cgi-bin/ops_period.cgi
If you'll notice, Payroll tax contributions are lower then Benefit payments. (Though the incoming total is higher then the outgoing total, because of interest payments on the governmennt IOUs to itself.)
Net cash flow has been negative since 2009.
Hence why checks will be delayed if we hit the debt ceiling. They need to wait for the money to come in to pay off the bonds to pay retirees.
2) Germany was better off then other Europeon countries largely because of Austerity in the first place. How in the world would the average person live off of what they pay in week in social security taxes?
Additionally, you don't seem to know what a double dip recession is. For there to be a double dip recession, there needs to be... well growth. Outside Ireland I don't believe any of the austerity countries have had growth yet. Which is as expected since you have to wind down all the bad debt and economic readjustmenet.
3) No real economists support longterm deficits. John Maynard Keynes is held up as the main left wing economist and he HATED deficits. He thought all debt should be temporary, short term and self liquidating. He just thought that letting bad debt and readjustment of markets was too painful in the short term, and therefore advocated a smalll short term deficit to spread out the pain.
