Free Markets, Free People


Entitlement irony, agenda priority

Just as the Democrats add another massive new entitlement to the laws of the land, one of the oldest entitlements “officially” goes into the red:

This year, the system will pay out more in benefits than it receives in payroll taxes, an important threshold it was not expected to cross until at least 2016, according to the Congressional Budget Office.

Stephen C. Goss, chief actuary of the Social Security Administration, said that while the Congressional projection would probably be borne out, the change would have no effect on benefits in 2010 and retirees would keep receiving their checks as usual.

The problem, he said, is that payments have risen more than expected during the downturn, because jobs disappeared and people applied for benefits sooner than they had planned. At the same time, the program’s revenue has fallen sharply, because there are fewer paychecks to tax.

Three things to be gleaned from this excerpt. 1) CBO numbers are static numbers based on nothing changing over the years in which their “scoring” takes place. Obviously that’s not reality and the CBO numbers for health care reform will prove that again soon. 2) Democrats will have to eat their words about Social Security being solvent and not in trouble. Many of the same one’s who made that claim recently also gave you the “numbers” in the health care bill scored by the CBO. And finally, 3) this isn’t a can Obama can kick down the road is it?

Not that he won’t try.

Because according to the NY Times, Cap-and-trade is the next legislative item the administration wants Congress to act upon.

Jobs?  The economy?

What in the world are you smoking – they don’t give a rip about jobs, the economy or you. There’s an agenda at stake here. The window’s closing fast. And what the citizens of America need or want aren’t important right now. Don’t believe me? Read the article cited above – it’s another economy killing tax slated for an April introduction into the legislative process.

Are the scales perhaps beginning to fall from a few eyes yet?

~McQ

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13 Responses to Entitlement irony, agenda priority

  • This is working out exactly like I predicted, we have the beginnings of a small economic recovery and it will be choked off by new taxes (and the return of old taxes due at the end of the year).
    Then the political pressure to inflate the economy will be too much for the administration to withstand but they will be hamstrung by Bernanke who will begin to raise interest rates.
    Get ready for a second round of recession, and this one will last for a while.

  • Arrogance knows no bounds Bruce – there’s nothing this guy thinks he can’t do, just as anyone who’s never done a damn thing himself in life thinks anything can be done (because it’ll be done by someone else, and with someone else’s money).

  • Keep your eye on the prize  …  making Speaker Pelosi unemployed (or at least make her fly coach).

  • McQAre the scales perhaps beginning to fall from a few eyes yet?
    Until I start seeing those Obama-Biden stickers being replaced with “I’m sorry” stickers, I would say no to that.
    You can fool all of the people some of the time, and some of the people all of the time.  We call the people in the latter category “liberals”.  You’d have better luck getting the Pope to renounce his faith than you would a lib to admit that Imeme has done anything less than a stellar job.

  • My hope is this: let’s let all of these entitlements go B-R-O-K-E. As soon as Social Security goes under, and Medicare and Medicaid are bankrupted by ObamaCare, perhaps the country will see the need to fix these things for the better once and for all. And if they don’t, well, tough crappola, we will just let the DIE.

    • I don’t think so, I’m sorry to say.  The programs will not “go broke”.  Uncle Sugar has several options:

      1.  Raise taxes (and raise taxes, and raise taxes, and keep on raising taxes)

      2.  Borrow, borrow, borrow, and keep on borrowing

      3.  Print more money

      4.  Raise taxes

      5.  Raise taxes

      6.  Make the systems more efficient while actually cutting benefits (cf. chocolate ration)

      7.  Raise taxes

      8.  “Means test” so that nobody actually qualifies

      9.  Raise taxes

      10.  Reduce waste and fraud (OK; just kidding, but I had to throw that in)

      There are too many people who rely on those programs and will vote for any politician who promises to keep them around to EVER be rid of them absent collapse of the country.

      Which may be where we’re headed, come to think of it…

      • 1) raise the age you get them.
        2) cut future benefits
        3) raise taxes
        4) means test (in the future…)
        These will be attempted first. If that is not enough, they will attempt inflation, converting 401K into treasuries, etc. However, as many of these have COLA, it may not work at all.
        Finally, the game will be up. If we hit another dip, it may occur far faster than we anticipate, but I would guess they can keep it up for a long, long time.

  • Where are the Republicans in all this? That party is most likley going to be back in power in congress after November and they need to speak up on this issue and actually begin to push back.

    They need to refine Social Security! Most people do not know this but convicted felons recieve SSI checks. If a criminal puts on a good enough act in front of a doctor or therapist they can recive ssi for physical and/or Mental disability despite their felony records if social security deems them “disabled”. This practice is one of many that needs to be stopped. Especially since the payment in benefits for ssi is $679 a month.

    We have convicted felons who recieve food stamps, medicaid, cash assistance, ssi checks etc. by law if they meet the requirements. Cutting back on the social programs is an issue the Republicans need to run on and actually put into practice when they get back in office. 

    • How true that is. I know a felon who has been receiving SSI for over 15 years. And that is not hearsay, I know the guy and saw his first check. He is the son of a employer for whom I worked and I have known him for years. He worked for no more than two years and the rest was in and out of prison. So, he did not contribute but a few dollars and we have been supporting him since. Go figure.

  • Come November, and I’m borrowing from Harry Truman here, the Democrats will experience a rain of ruin the like of which NEVER has been seen in American politics.

  • Another article linked in RealClearPolitics in their ‘Best of the Blogs’ section.
    Keep up the good work, Bruce!

  • Start calling in the Treasury IOU’s held by Social Security. Treasury “borrowed” the $$ from Social Security. Now it is time to pay it back. What? They don’t have the money? Where did it go?