Obama's "Green Shoots" Not Taking Root | Main | A Little Mood-Lightener: Classic Trek Gets the JJ Abrams Treatment
May 13, 2009

Oh, Right, the Social Security Problem is Obama's Fault, Too

Duh on me.

Nom de Blog:

When the budget is out of balance by the amount it currently is, the Social Security "trust fund" gets eroded more quickly. IOW, the government writes more IOUs to the baby boomers.

And you know what, that's happening right now and it's Obama's fault. Well, he had a lot of help from Harry Pelosi and Nancy Reid, of course.

Also markets are prospective. So there's a lot of pull back of investment right now because people look at the discounted cash flows of their investment under the new, higher tax regime and understand that what would have been prudent investment is no longer sound.

Right, right, right... Social Security money is (and has been for a long time*) diverted to general revenues, so the more we spend in general revenues, the more the "trust" (which is not a trust, but a stack of government IOUs in the form of bonds) is depleted.

And more debt equals higher payments equals greater costs in carrying the debt.

So, right, yes, this is largely Obama's fault. Not the long-standing trajectory of Social Security to insolvency -- but the sudden change of the insolvency date from 2041 to 2037.

Well, you can't say I tried to pin this on Obama. I specifically said I couldn't conceive of how this was even partly his fault.

But it is.

* Edited. A commenter says the diversion began happening under LBJ. I don't know if that's true, but it would make sense; the system would start producing excess revenues when the number of payors (the coming of the Boomers into the economy) began exceeding the number of payees (the previous, smaller generations).

digg this
posted by Ace at 04:56 PM

| Access Comments

Recent Comments
Boots: " Posted by: Boots at December 09, 2019 11:08 AM (o ..."

Puddleglum: "[i]574 Same as "love yourself". What does that mea ..."

TheJamesMadison, Strong with the [s]Force[/s] Schwartz: "585 Are the new Ghostbusters going to pretend that ..."

Easy Andy: "Honkeytonk Man Posted by: jsg at December 09, 201 ..."

Mr. Scott (Formerly GWS): "first. ..."

Surfperch: "Good morning Horde. ..."

chavez the hugo: "clint has for sure made turds you can't pick up by ..."

Moron Robbie -David Hogg wants to toss salads [/b] [/i] [/s]: "Are the new Ghostbusters going to pretend that the ..."

Anna Puma: "Rudolph the raunchy randy reindeer ..."

Elmer: "Kill da wan it! ..."

Sponge: "[i]Alyssa Milano@Alyssa_Milano I had a bad panic ..."

runner: "Very, very still life...... Posted by: SSBN 656 ( ..."

Recent Entries

Polls! Polls! Polls!
Frequently Asked Questions
The (Almost) Complete Paul Anka Integrity Kick
Top Top Tens
Greatest Hitjobs

The Ace of Spades HQ Sex-for-Money Skankathon
A D&D Guide to the Democratic Candidates
Margaret Cho: Just Not Funny
More Margaret Cho Abuse
Margaret Cho: Still Not Funny
Iraqi Prisoner Claims He Was Raped... By Woman
Wonkette Announces "Morning Zoo" Format
John Kerry's "Plan" Causes Surrender of Moqtada al-Sadr's Militia
World Muslim Leaders Apologize for Nick Berg's Beheading
Michael Moore Goes on Lunchtime Manhattan Death-Spree
Milestone: Oliver Willis Posts 400th "Fake News Article" Referencing Britney Spears
Liberal Economists Rue a "New Decade of Greed"
Artificial Insouciance: Maureen Dowd's Word Processor Revolts Against Her Numbing Imbecility
Intelligence Officials Eye Blogs for Tips
They Done Found Us Out, Cletus: Intrepid Internet Detective Figures Out Our Master Plan
Shock: Josh Marshall Almost Mentions Sarin Discovery in Iraq
Leather-Clad Biker Freaks Terrorize Australian Town
When Clinton Was President, Torture Was Cool
What Wonkette Means When She Explains What Tina Brown Means
Wonkette's Stand-Up Act
Wankette HQ Gay-Rumors Du Jour
Here's What's Bugging Me: Goose and Slider
My Own Micah Wright Style Confession of Dishonesty
Outraged "Conservatives" React to the FMA
An On-Line Impression of Dennis Miller Having Sex with a Kodiak Bear
The Story the Rightwing Media Refuses to Report!
Our Lunch with David "Glengarry Glen Ross" Mamet
The House of Love: Paul Krugman
A Michael Moore Mystery (TM)
The Dowd-O-Matic!
Liberal Consistency and Other Myths
Kepler's Laws of Liberal Media Bias
John Kerry-- The Splunge! Candidate
"Divisive" Politics & "Attacks on Patriotism" (very long)
The Donkey ("The Raven" parody)
Powered by
Movable Type 2.64