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NYT: Social Security In Red 6 Years Early

From a feigning shock New York Times:

Social Security to See Payout Exceed Pay-In This Year


March 24, 2010

The bursting of the real estate bubble and the ensuing recession have hurt jobs, home prices and now Social Security.

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.

Would it be cynical to question the timing of this report?

That Social Security is paying out more than it is taking in has been known for some time. Why is the New York Times just getting around to reporting about it now?

Why did they wait until one of the largest increase in entitlements in the country’s history was signed into law to mention that Social Security is now officially in the red — six years ahead of the most dire forecasts?

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…

Only because Social Security is the notorious ‘third rail of politics.’ Just like healthcare benefits will be another ‘third rail’ that cannot ever be touched.

Analysts have long tried to predict the year when Social Security would pay out more than it took in because they view it as a tipping point — the first step of a long, slow march to insolvency, unless Congress strengthens the program’s finances.

“When the level of the trust fund gets to zero, you have to cut benefits,” Alan Greenspan, architect of the plan to rescue the Social Security program the last time it got into trouble, in the early 1980s, said on Wednesday…

No, you could also raise taxes. Try to guess which course Congress will eventually take?

The long-term costs of Social Security present further problems for politicians, who are already struggling over how to reduce the nation’s debt. The national predicament echoes that of many European governments, which are facing market pressure to re-examine their commitments to generous pensions over extended retirements.

Isn’t this the same Europe that The Times and the Democrat party insist we should be aping? Didn’t we pass healthcare reform so that we could be more like the workers paradise of the European Union?

The United States’ soaring debt — propelled by tax cuts, wars and large expenditures to help banks and the housing market — has become a hot issue as Democrats gauge their vulnerability in the coming elections.

Notice how spending on ‘social welfare programs’ is conspicuously missing from the New York Times’ causes of the national debt. Even though spending on ‘social programs’ far outstrips every other category in the federal budget, no matter how hard they try to hide that fact.

President Obama has appointed a bipartisan commission to examine the debt problem, including Social Security, and make recommendations on how to trim the nation’s debt by Dec. 1, a few weeks after the midterm Congressional elections.

It doesn’t take a Nostradamus to predict just what Andy Stein and the rest of these political hacks will recommend: more taxes.

Social Security taxes, income taxes, value added taxes. Any taxes. All taxes. — It is always the solution. Coincidentally, more taxes is also the solution the New York Times suggests for any and all problems.

Indeed, The Times has two mantras, which they alternate on even and odd days: The need for more social welfare spending. And the need for more taxes.

Of course they both boil down to theirs and the Democrats’ real mission – the redistribution of wealth.

This article was posted by Steve on Thursday, March 25th, 2010. Comments are currently closed.

5 Responses to “NYT: Social Security In Red 6 Years Early”

  1. proreason says:

    Why did they wait until one of the largest increase in entitlements in the country’s history was signed into law to mention that Social Security is officially in the red six years ahead of the most dire forecasts?

    To get the ball rolling so the kinglette can “fix” it.

  2. Right of the People says:

    Flash from the NY Slimes! This just came across our news desk:

    “FDR re-elected for 3rd time!” More timely reporting by the Slimes.


    You unfortunately are probably correct. After he fixes Crap & Tax, the deficit, the hole in the ozone layer, global warming and extreme flatulence in Harry Reid and Nancy Pelosi he’ll take on Social Security.

    • proreason says:

      Prepare yourself ROP for a reduction in benefit for anybody making or due over about 1200 per month, so that those making under 1200 can be “helped” a bit more.

      The system isn’t very “fair” at the moment.

      (Actually, it’s extremely progressive, but that won’t matter. If the moron gets his hands on it, 90% of the benefits will go to 10% who vote for him).

  3. Mithrandir says:

    If everyone loses their job and has no money, they will increase property taxes, when people are kicked out of their homes, and there are no other buyers, people will be homeless and hungry.

    ONLY at that time is the government on the verge of collapsing. Until that time, they will force and squeeze every last penny out of you, confiscate your savings from the bank, repo all your possessions to cover your tax ‘responsibility’, the gov’t officials will have to encase themselves in bullet-proof glass and armed guards 24 hours a day, until finally, there is no one left willing to guard them. THEN you can start again with a clean gov’t.

  4. Perdido says:

    They can and will inflate the money supply. It solves the problem. They owe the pensioner 2300 bucks, no problem, pay em. But as the money volume increases down goes the purchasing power. Welcome to the $500. loaf of bread and the $1500. gallon of gas. They don’t have to steal your property to not pay the obligation. They just redefine the obligation. They do it all the time.

    Problem solved.

    (Own gold and silver, put your property under alloidial titles.)

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