Sunday, March 20, 2011
Krauthammer stamps his little feet over Social Security again
Time for another editorial by Charles Krauthammer over Social Security. He is wrong again and his stamping his feet and speaking in a louder voice doesn't make him right. Charles is a fine example of the So-Called-Liberal Washington Post's senile and privileged opinion writers.
1. There is no difference in government bonds held by the Social Security Administration and other government bonds. They are all numbers on computers and interest is calculated and paid. In one sense it is one branch of government having a debt and another branch having an obligation but governments work that way. If Social Security redeemed those bonds and bought other government bonds Charles would still object and those purchases would do nothing but generate a lot of transaction costs.
2. Those bonds also represent an obligation to the American people who have paid for those bonds with the Social Security tax and a default would have a big meaning. Such a big meaning I imagine that workers would riot and sweep away Charles's little world if the government ever did what Charles wants and sweeps away the bonds.
3. The statement that the debt is not used in calculations of government debt is simply wrong. It is easy to find presentations of where that debt is used in calculations of government debt and it seems more common than not.
4. Means testing is not any kind of "cure" for reducing Social Security obligations as even a little thought would show. Rich people are not a significant percentage of the population collecting Social Security. Other means for extending the current Social Security payment system past the 30 so years already covered, and is even covered well past that time at higher payments than today, will undoubtedly come to pass but it has nothing to do with the national deficit. It may have a little something to do with the scare-mongering of people like Charles Krauthammer.
5. The real usefulness of idiots like Krauthammer is preparing the people for another grab by the rich from the poor. The rich don't want to pay the taxes they have deferred and Wall Street wants its hands on the people's money that goes into Social Security.
6. As an aside, when is Charles going to quit using that 40-year-old picture that is published in his syndicated columns? Is it a reverse Dorian Gray, it doesn't age while his real face shows all the ravages of corruption and serving the interests of the rich and privileged? The one on the Washington Post page is midway between the Houston Chronicle's and what shows when he emerges from his crypt to appear under TV lights even after pancake make-up and black hair dye.