Thursday, February 03, 2005

Must-read blogging on Social Security

This post at MyDD explains why this whole Social Security thing is just a ruse to pay for tax cuts for the rich. Read this:

Even more curiously, a "senior administration official" who briefed reporters on the Social Security proposal earlier today disclosed details of the White House plan that I don't think will play well in Peoria. Most significantly, this official revealed that most or all of the earnings from new "personal" or privatized accounts will be paid not to the holder of the account, but to the government. The senior official called this a "benefit offset." It's one way to finance the creation of these private accounts, but it's going to cause quite a political stir, I think.
So the money made in these accounts goes to the government to pay for the program, and then the government gives you they money they think you ought to have earned. Benefit offset indeed. Also, this Washington Post story explains that you would need to earn bettter than 3% rate of return above inflation to even have a benefit from doing this plan. With the restrictions on where your money can be invested, you're certainly not going to get the 6.5-7% that privatizers have been forecasting. You'll be lucky to get less money than you would have anyway, and you don't even get the money, the government does. Then the government gives you some money. Ownership society my ass. And with all the money being taken out of the program to fund these private accounts, traditional Social Security will be so destabilized that even those of us who are smart enough not to opt-in are going to have to pay. This isn't Social Security, this is a suicide pact and Bush is that crazy preacher guy from Poltergeist II.


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