Investors’ Business Daily has justly pointed out that Obama’s threat to Social Security in the current budget / debt ceiling talk is more than just another arrow in his class warfare quiver; it is a frank admission of what a fraud Social Security is.
An excerpt from Obama Exposes Social Security’s Big Lie 7/13/11:
What happened to Social Security’s “guarantee”? You know, the iron-clad assurance of Social Security benefits in exchange for paying into the program your whole working life? It’s something Democrats constantly talk about, particularly when attacking Republicans who propose privatizing the program.
As Nancy Pelosi once put it: “Social Security has never failed to pay promised benefits, and Democrats will fight to make sure that Republicans do not turn a guaranteed benefit into a guaranteed gamble.”
The AFL-CIO warned in 2005 about “President Bush’s plan to replace Social Security’s guaranteed benefits with risky private accounts.” The AARP describes Social Security as “the guaranteed part of your retirement plan.” Etc., etc.
Turns out, this “guarantee” is a lie.
And what about that Social Security “Trust Fund” the Democrats rhapsodize about? Isn’t it supposed to guarantee benefit payments for another 30 or 40 years?
Truth is, the fund is nothing more than an accounting gimmick designed to make the program look healthier than it is. Obama exposed this scam as well by showing that retirees can’t trust the “Trust Fund” for anything.
These are, by the way, all shortcomings that Social Security privatization advocates have tried to point out for years, only to be shouted down by Democrats.
Like any Ponzi scheme Social Security has always depended on new entrants to pay current beneficiaries. When the population growth stops the fraud is exposed. As Walter Williams noted you can always tell how good a government benefit is by the fact that you are forced by law to participate. When such ‘benefits’ are really just a massive distribution of wealth from one party to the another you can rest assured that the first party will have to be forced by law to participate.