Serious Time

[ZenGum]

In Parliament of Whores, P.J O'Rourke described the situation with social security. He's more than half satirical, but I think he has these facts, at least, correct.

Soc Sec takes some money in, pays some money out. If there is surplus (which there has usually been ... up until now) the only "investment" they are allowed to make is to buy US treasury bonds. A brief reflection on the insane gambles of the Savings and Loans crisis will make clear why no one trust bureaucrats with money.

Problem is, when they lend money to the treasury, the only thing the treasury can do is spend it. They're not allowed to invest it either.

Then in the future (which is now here), when soc sec runs into the red, they call up the feds and say, pay some back please. The feds can only shrug, say "we've spent it" and either raise taxes on everyone else, or cut or delay soc sec payments.

US style social security seems to be either disguised and poorly managed taxation, or a giant ponzi scheme.

Is this how it looks to you guys?