Well folks, according to a report by the Congressional Budget Office, Social Security is broke. . . busted. . . bankrupt.
Oh, you won’t hear those words from the Democrats and Republicans. Nope, they’ll go on record about how Social Security is too big to fail and how they will honor their commitments to America’s seniors.
But the truth of the matter is that the Federal Government is unable to honor the I.O.U.’s they have issued for the money they have borrowed that allowed them to spend, spend, spend. Of course, experts saw this coming for decades, but politicians ignored them.
Here’s how it happened. . .
Back in the 1980’s, SS was about to go belly up. In order to “fix” the problem, benefits were cut and F.I.C.A. taxes were raised. This created a surplus that collected interest and was supposed to secure the SS fund for a generation. But alas, as is always the case with Washington, they saw this money as “theirs” and borrowed it to help fund the Federal government.
By the way, that’s one reason that ANY conversations over the past three decades about balanced budgets has been nothing more than a ruse. Even Bill Clinton’s balanced budgets and subsequent surpluses were only possible because the SS fund was being added to the general fund.
Sadly, just like the movie Dumb and Dumber, the briefcase full of money that should have been available to pay benefits the baby boomers now retiring is full of nothing but a bunch of I.O.U.’s, thanks to Harry and Lloyd (aka Democrats and Republicans). And just like this scene, they’ll try to convince us that their I.O.U.’s are “just as good as money.”
Just like the guy with the gun, retirees want their money now. Just like Lloyd, all they can offer is an I.O.U. Just like Mary, the taxpayers who filled the briefcase with money have lost it all.
You know, there’s another parallel to the movie Dumb and Dumber. The money in the briefcase was supposed to be used to pay off a blackmailer. I think blackmail describes the current relationship between Washington and the taxpayer pretty well, don’t you?
But that’s a subject for another time.
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