The simple solution is to simply print the money out and issue checks as needed. We let Banks get away with creating money, why not allow government to cover social security by creating the money required?
Tax more....borrow more...print more money....charge more use fees!
If when we come to the end of Paul Krugman's $5T of remaining world credit, and the economies are still on their rear-ends, and someone has to pony up those IOUs in the SS trust fund, I guess that leaves:
Tax more....charge more use fees.
Right after the "payroll tax holiday."
Sounds like a Plan.
No it doesn't. Actually, it sounds like a clueless end game.
Good luck.
Hey kids! Our 'investment' in SS paid off! You only have to be taxed and borrowed from to the tune of an extra $1,822 for every $1,000 that the gov't spent 20 years ago, buying votes!
That's pretty brilliant investing! Thanks Dad!
No problem, Son. It was painless.
So, currently, more of the same, the gov't is flailing around, artificially trying to keep that bubble inflated yet longer with yet more crazy borrowing from the future as pure insanity, but it is all our out of control political cronyfest gov't knows how to do.
It never made any sense, it was always crap, even at the peak of the credit funded consumption party,
no matter how good times were.
I've had some very good times totally drunk, and there is always a day after. This is it.
We drunkenly paid for others retirement. We showed up at the party with
an extra 30 million paying party-ers, but that wasn't enough, our elders wanted to throw an even larger party, so in addition to the demographic subsidy, they and we also ran up our credit cards, to pass the party bill to our kids, just as they continue to do as we speak. It was sure enough a great party, brilliant, and now we are having Census reassure us that it will be all those streaming illegals from Mexico who will be paying for our generation's retirement, no worries.
So, where is the 'better' argument? The better idea is based on the alchemy of how one actually defers present value and converts it into future value. That is done by investing in future economies. That is
not done by the opposite, which is, borrowing from future economies, which is exactly and precisely what we all did do, what the gov't was forced to do with the SS Trust Fund subsidies, because before all this bail out nonsense,
it had no way to convert an asset on its books into equity in future economies. After all, we were told, we couldn't have the gov't involved in Wall STreet. (Then...what were we as a nation doing handing over
an extra 10% of earnings to the gov't based on its claim to do exactly that--defer present value into future value?) I know that isn't 'the function of SS taxes' -- and I also knew it then, when Congress used the argument to overtax an already surplus paying demographic. SS, as run, no matter how wonderful the party was when it was abused, was insane.
Because it did
the opposite; it borrowed from the future economies(by immediately spending the current value and converting it into an IOU, a demand on future economies.)
This is a double whammy. Not only did it not invest in those future economies, but it did worse than doing nothing; it borrowed from them. And, pointing out how well the economies did
in spite of the government's fat fingering with SS is not nearly the same as saying they did so because of.
Well, those future economies are here. These are them. Our busted ass, carcass carved, bones are showing economies are those economies. Our penniless federal treasury, facing a future of never going to be met obligations growing by the minute, is the treasury we should expect in those future economies.
We will try to keep this insanity floating, for as long as guns and printing presses and crap will allow. Obama will try, but in the end, the federal gov't is going to be a tiny fraction of what it is today. The nations economies will pick up the pieces, we'll pull in our belts, this generation's pain will be back end loaded, just like our parents generation's pain was front end loaded.