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merrill

Have politicians been lying to the public about Social Security Insurance with the intent to deceive? Of course.....

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Has the president actually lied to the public about Social Security?

social security cartoon

Yes. President Bush has repeatedly said that those who put their money in private accounts are "guaranteed" a better return than they'll receive from the current Social Security system. But every sale of stock on the stock market includes the disclaimer: "the return on this investment is not guaranteed and may be negative"--for good reason.

 

During the 20th century, there were several periods lasting more than 10 years where the return on stocks was negative. After the Dow Jones stock index went down by over 75% between 1929 and 1933, the Dow did not return to its 1929 level until 1953.

 

In claiming that the rate of return on a stock investment is guaranteed to be greater than the return on any other asset, Bush is lying. If an investment-firm broker made this claim to his clients, he would be arrested and charged with stock fraud. Michael Milken went to jail for several years for making just this type of promise about financial investments.

 

In fact, under the most likely version of the Bush privatization proposal, a 20-year old worker joining the labor force today would see her guaranteed Social Security benefits reduced by 46%. Bush's own Social Security commission admitted that private accounts are unlikely to make up for this drop in guaranteed benefits.

 

The brokerage firm Goldman Sachs estimates that even with private accounts, retirement income of younger workers would be reduced by 42% compared to what they would receive if no changes are made to Social Security.

 

President Bush also misrepresents the truth when he claims that Social Security trustees say the system will be "bankrupt" in 2042. Bankruptcy is defined as "the inability to pay ones debts" or, when applied to a business, "shutting down as a result of insolvency." Nothing the trustees have said or published indicates that Social Security will fold as a result of insolvency.

 

Until 1984, the trust fund was "pay-as-you-go," meaning current benefits were paid using current tax revenues. In 1984, Congress raised payroll taxes to prepare for the retirement of the baby boom generation. As a result, the Social Security trust fund, which holds government bonds as assets, has been growing. When the baby boomers retire, these bonds will be sold to help pay their retirement benefits.

 

If the trust fund went to zero, Social Security would simply revert to pay-as-you-go. It would continue to pay benefits using (then-current) tax revenues, and in doing so, it would be able to cover about 70% of promised benefit levels.

 

According to analysis by the Center for Economic and Policy Research, a 70% benefit level then would actually be higher than 2005 benefit levels in constant dollars (because of wage adjustments).

 

In other words, retirees would be taking home more in real terms than today's retirees do. The system won't be bankrupt in any sense. On this point, President Bush is "consciously misrepresenting the truth with the intent to deceive." That is what the dictionary defines as lying.

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Why do you liberals always have to lie?

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6 minutes ago, Duck615 said:

Why do you liberals always have to lie?

 

Where is the lie?

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8 minutes ago, merrill said:

 

Where is the lie?

you whole OP is just an opinion

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10 minutes ago, merrill said:

 

Where is the lie?

  He didn't have his sister read it to him.

  She couldn't talk with his little pee pee in her mouth.

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I just printed our S.S. statements yesterday, at 67 the wife and I will collect $64k a year from S.S..

 

We have done our part, the younger crowd will have to contribute more to pay the bill. Sucks to be them!

 

 

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