Quote:
Originally Posted by Socom
Look forward to a reduction in benefits and inflation. Congress had raided the SS General Fund for years and replaced those funds with IOU's. The treasurary will have to print money when it comes time to collect on these IOU's because the working population will not be able to do it with payroll tax increases.
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I think the most likely case would be a reduction in benefits (especially to the current beneficiaries). This is because their benefit is significantly larger than the amount they contributed, so it would only make sense to curb these benefits a tad bit: also, they really can't complain because most are covered under medicare right? i.e. FREE health care
As for your IOU note... is that info entirely credible? Or maybe my knowledge is just a bit outdated...
I thought during the very end of the 1990's [up until now], SS currently brings in more revenue than it pays out in benefits... and the surplus is invested in government bonds. Given that, i thought within a couple decades, the annual surplus would [eventually evaporate], and SS will have to start drawing on this nest; and for the government to honor these bonds, they will then require huge borrowing (essentially replacing these IOUs to itself with real IOUs to private individuals) or a huge tax increase. Has the surplus already been exhausted?
As for the reduction in benefits and inflation remark... i agree w/ the reduction in benefits... as for inflation to be reduced as well, how would increasing the money supply (i.e. printing more money), reduce inflation? Wouldn't increasing the money supply do the exact opposite; depreciating the dollar, increasing inflation...?