Originally published July 5 2005
Social Security solvency problems
by Mike Adams, the Health Ranger, NaturalNews Editor
Bush's historic attempt to revamp social security with privatization and wage indexing have been met with overwhelming opposition, and the new plan to defer Social Security surpluses into private accounts has been touted as a way to decrease federal borrowing, but actually does little to solve the eminent cuts in benefits for retiring baby boomers, the Baltimore Sun reports.
Social Security can keep paying all scheduled benefits for another 36 years, according to projections, but its annual surpluses run out in just a decade or so - highlighting the need for Washington to get serious about a comprehensive fix.
The stakes can't be understated: Social Security, according to a recent study for the Economic Policy Institute, is the largest income source for two-thirds of those over 65.
Trouble is, the president and fellow conservatives have been more serious about their political ends - more serious about changing a successful social insurance program than they are about saving it.
First Mr. Bush pitched diverting some Social Security taxes into private accounts, thereby asking future retirees to trade guaranteed cuts in benefits for the chance to regain the money in stocks.
This would turn Social Security into a welfare system, for which middle-class Americans increasingly have little taste.
How convenient for those still trying to undo the New Deal.
And with all this roundly rejected by Americans, conservatives in Congress last week came up with the worst plan yet: Do nothing to fix Social Security's shortfall, while diverting its surpluses - until they peter out in 2017 - to private accounts.
If the goal here is to get the camel's nose under the tent, the cost would be high, the loss of $600 billion in surpluses that likely would be used to reduce federal budget deficits.
And get this: It is being sold as a sort of "lock box" to prevent Social Security revenue from being drained off by federal deficit spending - a fantastic turn for the party whose irresponsible tax cuts and spending have led this nation in just five years from surpluses to record red ink.
All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing LLC takes sole responsibility for all content. Truth Publishing sells no hard products and earns no money from the recommendation of products. NaturalNews.com is presented for educational and commentary purposes only and should not be construed as professional advice from any licensed practitioner. Truth Publishing assumes no responsibility for the use or misuse of this material. For the full terms of usage of this material, visit www.NaturalNews.com/terms.shtml