Social Insecurity

Never mind the $2 trillion spending gap if Dubbyuh's scheme for social security privatization gets pushed through Congress. According to a study comissioned by Paul O'Neil while he was Secretary of Treasury, the Fiscal Imbalance, the current federal debt held by the public plus the value in today's dollars of all projected non-interest spending, minus all projected federal receipts, is somewhere in the neighborhood of $51 trillion. That's nearly 5 years worth of the total current US GDP to pay for future expenditiures, primarily in the form of Social Security payouts as well Medicare and Medicaide claims. Sound fiscal policy mandates a fiscal imbnalance of zero...zip...nada.

This information was supressed by Dubbyuh's White House, but was revealed by economist Laurence Kotlikoff in a book entitled "The Coming Generational Storm: What You Need to Know about America's Economic Future"which was released last spring, so both presidential candidates had the information available to them, both failed to address it. This is the "economic Armageddon" Stephen Roach, of Morgan-Stanley, spoke of recently. It is a case of "fiscal child abuse" because, unless we deal with this problem now, our descendents will be paying for it for the foreseeable future. According to Mr. Kotlikoff if a 78% tax rate were to be imposed now, we might just cover the expense. If we wait 5 years, that tax rate would jump to 84%. There is no easy way to solve this problem and it will require sacrifices on the part of all of us, and soon, to dodge this bullet. But the easy way seems to be the only way Dubbyuh and his merry band seem willing to entertain. Or at least any way which benefits Dubbyuh' political pimps and johns, the rest of us can suck hind tit.