Brantley criticizes Boozman’s views on Social Security (Social Security Series Part 2)

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Social Security Series Part 2

Glenn Beck on Social Security with Chris Edwards, Director of Tax Policy, Cato Institute

Max Brantley on the Arkansas Times Blog on Sept 3, 2010 (“Boozman’s aim on Social Security,”) asserted, “John Boozman has indicated he believes Social Security is unsustainable and needs to be changed by opening the door to to privatization measures.” Then Brantley goes on to mock Boozman’s beliefs on this matter.

The facts however are very clear on the matter. Bill Frezza is a partner at Adams Capital Management, an early-stage venture capital firm. His article “Not in 25 years, Social Security is Bankrupt Now,” August 9, 2010, Real Clear Politics sets the record straight:  

This just in from the trustees that issue the annual report on the health of those two pillars of the modern entitlement state: Medicare and Social Security. For the first time in its history the Social Security program will pay out more money than it takes in. This watershed event will occur this year, to the tune of $41 Billion dollars. Under any rational accounting standards this makes the Social Security program bankrupt. And that’s right now, not in 25 years when the so-called Trust Fund becomes insolvent.

You see, most pension programs hold income producing assets in their Trust Funds. Stocks, bonds, real estate, oil and gas partnerships, that sort of thing. A fully funded pension program owns enough of those assets to pay its liabilities even if the company closes its doors and not a penny more of new money comes in from current employees.

Social Security plays by a different set of rules enshrined under the New Deal and Great Society programs. These are the same rules that landed Bernie Madoff in jail. Although the Social Security system has been regularly taking in billions for decades and socking it into its Trust Fund just like a normal pension plan, Congress has just as regularly been draining the money out for current spending. All of the money collected from every American’s paycheck throughout all of our careers is now gone. In its place are not stocks, bonds, real estate, and oil and gas partnership. In its place are IOUs from Harry Reid, Nancy Pelosi, Charlie Rangel, and Barney Frank. $2.5 Trillion dollars worth of IOUs.

Now, imagine if a private company had a pension plan that its executives had completely drained wining and dining Congressmen in return for IOUs. What do you think would become of those executives when word got out that the only way they could make pension payments was to beg a flat-broke Congress for money?

Tar and feathers come to mind.

Max Brantley and other liberals will keep singing the same song because it brings them political points. However, the facts are out there for all to see. Just wait until those baby boomers double the number of retirees in our nation receiving Social Security in the next few years. Even the liberals may come around when that happens.

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