I was in a group of senior citizen's today discussing the work of Milton Friedman. Today's topic was the Federal budget deficit / debt. Almost 50% of the $9 trillion debt is attributable to "intragovernmental" transfers of which the largest portion is related to Social Security.
At a point, the question was raised as to how to solve the Social Security pending shortfall. The first suggestion was to raise the tax on wages by 2%. A second suggestion was to raise the retirement age. The burden of both of these ideas would fall on young people. Note: few in the room currently pay taxes on wages because most are retired and receiving Social Security payments. It's always easier to let the other guy pay for something.
In fairness, a few suggested cutting benefits.
The shortfall will have to be paid by either an increase in taxes or a cut in benefits or both. However, creation of truly funded personal retirement accounts would mean that on an on going basis the system would become funded and there would be on additional shortfall.
Let's Save Social Security now.
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"Almost 50% of the $9 trillion debt is attributable to 'intragovernmental' transfers of which the largest portion is related to Social Security."
Huh? Are we just making terms up now?
The SS Trust Fund is invested in govt. securities, which are backed up by the "full faith and credit of the USA"...the same as our money. It is not "worthless paper" as Bushy Boy said (he was the first President ever to visit the SS Trust Fund and irresponsibly say that). It is true that a large portion of the federal debt we actually owe to ourselves, which is a very hard concept for most people to grasp. I'm not saying that the debt isn't a problem, but the GOP shows an unwillingness to do anything about it.
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