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Mar. 21, 2005 11:50 AM
Iran's Sham Election In Houston.
June 20, 2005 5:36 AM
Yes, Kanye, Bush Does Care.
Oct. 31, 2005 12:41 AM
Health Care vs. Wealth Care.
Nov. 23, 2005 3:28 PM
Americans Voting With Their Feet.
Nov. 30, 2005 1:33 PM
Idea Majorities Matter.
May 12, 2006 6:15 PM
Twilight Zone Economics.
Oct. 17, 2006 12:30 AM
The "Shrinking" Middle Class.
Dec. 13, 2006 1:01 PM
From Ashes, GOP Opportunities.
Dec. 18, 2006 6:37 PM
Battle Between Entitlements & Pork.
Dec. 21, 2006 12:31 PM
Let Economic Freedom Reign.
Dec. 22, 2006 10:22 PM
Biggest Health Care Moment In Decades.
July 25, 2007 4:32 PM
Unions Antithetical to Liberty.
May 28, 2008 11:12 PM
Right To Work States Rock.
June 9, 2008 12:25 PM
Social Security Reform Thursday.
January 29, 2008
Jan. 21, 2009
The Carnival Of Classiness.
Mar. 14, 2006
Quotational Therapy: Obama.
Apr. 4, 2008
Mainstream Melee: Wolfowitz.
May 19, 2007
Pundit Roundtable: Leaks.
July 9, 2006
A WILLisms.com(ic), by Ken McCracken
July 14, 2006
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WILLisms.com January 2009 Book of the Month (certified classy):
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Social Security Reform Thursday: Part 78 -- Eating Social Security's Seed Corn.
Thursdays are good days for reform, because they fall between Wednesdays and Fridays.
That's why WILLisms.com offers a chart or graph, every Thursday or so, pertinent to Social Security reform.
This week's topic:
Social Security Has Been Upside-Down For Decades.
John Steele Gordon, on Social Security:
It has been widely noted that 2009 will have the first "trillion-dollar deficit" in American history. Actually it's the second. In fiscal 2008, the national debt increased from $9 trillion to slightly over $10 trillion. Yet the budget deficit in the last fiscal year was officially reported as being $455 billion. How could the national debt have increased by considerably more than twice the "deficit"? Simple. Just call the money borrowed from the Social Security trust fund an "intragovernmental transfer" and exclude it from the calculation of the deficit.
Social Security is a pay-as-you-go Ponzi system, but it is supposedly backed by a trust fund. So how is that alleged trust fund doing? Not great:
...from the program's inception through 1986, the average annual return on the trust funds was negative. To repeat, through the first four and one half decades, the trust fund's investments lost money on average each year. Following 1986 the running average of annual returns was positive, but barely so: even extending through 2008, the average annual return on trust fund investments, adjusted for inflation, was only 1.38 percent above inflation.
At the link above, Andrew Biggs talks about how our current system is a bit like eating the Social Security seed corn. We're not doing our future selves any favors.
Meanwhile, with all the talk of the "moral hazard" concept these days in the news with regard to bailing out poor decision-making, Social Security has subsidized our declining savings rate, exposing our economy to greater risk. When Social Security is supposed to take care of retirement for you, and when you're already throwing 12+% of your salary into that hole, why do any additional saving?
Social Security is America's biggest expenditure today. If it were its own country, it would be Saudi Arabia:
Inaction in 2005 on Social Security reform will cost America dearly, late into the 21st century.
Tune into WILLisms.com each Thursday or so for more important graphical data supporting Social Security reform.
Previous Reform Thursday graphics can be seen here:
-Week One (Costs Exceed Revenues).
Posted by Will Franklin · 19 February 2009 04:41 PM