Share/Bookmark

Discuss: Share in Our Policy Ideas

Tuesday, April 12, 2005

Multigenerational Grand Larceny

Malvin Schechter, Freelance Consultant and Writer

What is so irritating to this Social Security taxpayer is that l have, in effect, overpaid my Social Security contributions since 1983 in order to build up the trust fund. The President insults me and other contributors by implying that the funds are tied up in worthless Treasury bonds, or lOUs. That's not what we were told when asked to dig deeper into our pockets. Moreover, if the objective of Bush's remarks is to prepare the way for a default on these Treasury securities, one wonders if he knows what he will do to the bond market and the pension funds that hold Treasury bonds: he is campaigning to discredit any Treasury bonds (and any corporate bonds, since they constitute lOUs, too).

The default will be a monumental theft from Social Security taxpayers in favor of the high-income taxpayers whom Bush presumably would immunize against taxes for redeeming the bonds when Social Security needs the money to pay scheduled benefits to my children and grandchildren. (I will be long gone.) This is multigenerational grand Larceny!

To help the President with a conceptual problem, let's think of those bonds in the trust fund as a debt owed to the Social Security program by the government. Yes, the bonds are paper. But they are paper in the class of another piece of paper, the US Constitution.

All Comments

Post new comment

If you have an account, please login first so we can retrieve your information.

Your e-mail address is kept private and will not be shown publicly.
CAPTCHA
Please note that some comments are moderated, so it might take a few moments for your comment to appear on the site.