Thursday, January 27, 2011
Social Security is Falling, says Chicken Little
The press and politicians are trying to scare us about Social Security so we will accept silly things. It is like Chicken Little claiming the sky is falling. Sure the net outflow from the SS Trust Fund will drain it in 2037, but the Fund is just an accounting fiction. We don't have a special tax and fund for national defense. While it might be a good thing if the papers harped on the war fund being exhaustible, it would be practically meaningless. All taxes go in the Treasury and Congress decides how to spend it. It is not helpful to isolate one category of tax and spending from all the rest.