I.O.U.S.A. Bonus Reel: Deficits and Social Security

[mortekami]

@SSgtParmer Notice how when you look at the graph there wasn't really any budget surplus without having to pilfer money from social security.

[the1mage]

Our politicians have proven time and time again that they will spend any amount of money to keep themselves in power. Since the U.S. people won't stop it, the only hope we have is if the world determines our economy is "too big too fail".

[Unclesamslair]

turns out the social security surplus isn't just spent on other things. It's borrowed at an interest rate to the US government who then has to pay it back to the social security with interest. SO in other words the deficit already includes the money that we borrow from the social security surplus and so stacking it on top like that to make the deficit look larger is false and misleading.

[NateCrisman]

@Unclesamslair

That is in effect your left pocket writing an IOU to your right pocket. They funds are still coming from the same place, the USA taxpayers.

[Unclesamslair]

wait, I thought social security was broke, but it's actually running surpluses and helping pay for large parts of the budget?

[threebobs]

End the state.

It's the only solution to inevitable economic disasters.

[Unclesamslair]

@threebobs and who will pay the debt?

[threebobs]

@ Unclesamslair

I'm speaking of a long-run solution to the inevitable financial disasters that a state brings.

Give one group of people the right to take money by force and you have a guaranteed rip off in the making.

[Unclesamslair]

well, yes but there's a bunch of people with us treasury bonds who paid for them and are expecting a return on that investment, do you have any idea of what the economic impact of ending the state and not paying back all those treasury bond holders their money would be?

[threebobs]

@ Unclesamslair

Well, yes, there will be consequences for investing in a violent monopoly. But people will never get all of their value back no matter what. The only way that people in 2030 will get their money back will be in inflated worthless dollars.

We need to look beyond the coming disaster and start thinking about preventing this stuff for our grandchildren. Short-run "philosophy" got us here. Long-run thinking is the only prevention. And a pure market is the only solution imho.

[jackiechan511]

And these neo-con elite want to cut taxes even further. We'll that's one argument that these neo-cons dont look at.

[LetsNotBeSoStupid]

July 4th, 2009

America's Tea Party

3700 Hogge rd. Parker Texas 75002

[thedevilisbad]

The facts aren't liberal or conservative, they're facts. As a moderate conservative I'm ashamed of how unwisely we've spent money. As a Christian I'm ashamed on how we spent money. I encourage believers not to align with the republicans just because they say they're conservative, find a responsible candidate who knows what they're talking about, and then acts on what they believe.

[lesatseaside]

You are absolutly clueless.

These huge debts are a result of social programs enacted by DEMOCRATS.

The surplus during Clinton's presidency was BOGUS: the numbers were jiggered. The money collected from Social Security (FICA) was supposed to be dedicated for future retirees, put in a "lockbox", instead the money was added to the general budget. THAT is where the surplus came. Without it, we were in the RED.

Grow up, and get educated.

[trigga1uk]

the usa is so screwed!

[BoobyTubenevky]

Wake up Guys, vote Republican again and even "Friend Countries" will be against you...

ML (Canadian)

[titans8904]

you are unintelligent

[runkaballe]

Thank god I live in Sweden we are going plus, at the moment.

[DKPA1967]

For every debit, there is a credit. If the Govt spends one dollar (credits the private sector by one) it has a debit of one. If the Govt spends two dollars (debit), the private sector gains two dollars. (credit) It is a common myth that deficits are 'bad' for the nation because it sends the message that somehow the collective 'we' are poor. When in fact, every dollar that the US Govt is in deficit (debit) is exactly equal to the amount the US consumer (private sector) is in credit!

[bdmunroe]

FYI China and other nations who are holding much of the debt are the ones getting paid a lot of this...not the US Consumer.

[kickittome70]

Yes, DK he's right. China is now awash with 100's of billions of IOU's from the US treasury. When Navy want to build an aircraft carrier for $4.5 billion, the US Department of Defence will go to congress for the money. The money gets approved. Then the DOD goes to the US Treaury and they will sell $4.5 billion of bonds to whoever buys them, and for the past 3 - 4 years thats been China. Remember - it's not who spends the money, it's who earns income from the bond and then get the money back.

[kickittome70]

The thing is that that aircraft carrier will be worthless in 30 years. Gone. The Chinese will earn money so the US Navy can build an aircraft carrier. It's kinda funny how quickly the Bush gov. has managed to destroy your once amazingly creative, influential and wealthy country. It seems that 9/11 seems to coincide with the steady decline in the US in relation to wealth, influence and business confidence. A $trillion on a war that didnt change anything seems an awful waste of valuable treasure

[ajpmathwiz]

@kickittome70 50 years.

[TreyNitrotoluene]

Wow, Clinton really did so much for us and we never saw anything like this.

[cowboycarl04]

It was not him... it was his advisor's around him.

But it's about finding the right combination of things. Clinton's people took the George Bush 41 setup and improved it to balance the budget. Notice the graph 4 years before the green... rapid improvement in the deficit because of Bush 41 policies...

my opinion is that both were the better ones that we have seen since kennedy.

The

[TreyNitrotoluene]

Bush was a shame! Clinton was in for 8 years, the budget didn't have a surplus until his last 4, it was ALL Clinton.  Reagan, Bush I and Bush II are the only real terrorists this country is facing today.

[cowboycarl04]

wow... i forgot about clinton was 8 years... i'm wrong about that, but you're diluted a little with your bashing...

all presidents since wilson IMO have been pathetic and have ruined this country in a way...

[TreyNitrotoluene]

I understand your point but hey, if you're not pissed you're not paying attention ;-D

You are right on the presidential lack of sense issue. I keep hearing facts I know but very little on how to fix it. GRRRRRRR

[KingOrmond]

Something you forgot ADD solar, wind, robot....! that new mathmatic economy system are VERY different from old economy system.

[KingOrmond]

Solar, Wind, Robot,.. make overcome debt!

BUT old economy system big problem because where new "clone" money?

Change new economy system will be earse debt debt! because if have to solar, wind, ..robot,..

[brad3378]

$53 Trillion (which includes our future obligations such as Social Security & Medicare) divided by

117 Million US taxpayers equals

$452,991.45 per taxpayer

[LibertyOrBust]

This shows clearly how the government has OUTRIGHT STOLEN from Americans since the day Social Security was implemented!!

I said STOLEN and I mean it! What is it but THEFT? You can say "help cover other bills" but what that really means is "stole from the future to pay for other government waste we would not want to burden current taxpayers to pay for"

This is how all socialism dies. America is not immune.

[LibertyOrBust]

And to add insult to injury, now we have to pay for THREE things out of current taxes...

1. The stolen Social Security surplus

2. The "interest" on ALL money ever paid into social security... NONE of which was ever "saved"

3. TO CONTINUE ALL THE WASTEFUL GOVERNMENT PROGRAMS STARTED UP WITH THE "SURPLUS" ... these other programs that were funded will need to continue to be funded only now out of current debt or taxes.

Only one solution here... Freedom. End the programs.

[anthony1832]

I say people under the age of 35 no longer get SS benefits, and no longer have to pay. Those who have been paying all these years that are under 35, get a refund. People above 35 can opt out of paying and will receive less benefits, or they can pay into it and receive full benefits.

Eliminate social security!

I'd rather take that money and invest it myself, then let the gov't fu*k me.

[kickittome70]

Wherever your money goes, unless it's in your own business - you have no control brother. We have retirement plans in Australia to augment our gov. pensions. Trouble is they're all going backwards. It's got to be in your business - so you can call the shots. The rich bastards on Wall Street know that we dumb little people need to park our cash somewhere before we get the gold watch, so they use our pension savings like a treasure chest so that they can get rich. Then they lose and say - "sorry"

[lookitcrashed]

it all seems to be a bit of a snowball....of doom

[gavinovz]

These graphs really help you understand what is going on.