Remember that “lock box” that Social Security money was in?  Well government, as government is wont to do, has already raided it over the years, treating Social Security funds as its own private slush fund and left IOUs in there.

This year, for the first time since the 1980s, when Congress last overhauled Social Security, the retirement program is projected to pay out more in benefits than it collects in taxes — nearly $29 billion more.

Sounds like a good time to start tapping the nest egg. Too bad the federal government already spent that money over the years on other programs, preferring to borrow from Social Security rather than foreign creditors. In return, the Treasury Department issued a stack of IOUs — in the form of Treasury bonds — which are kept in a nondescript office building just down the street from Parkersburg’s municipal offices.

Now the government will have to borrow even more money, much of it abroad, to start paying back the IOUs, and the timing couldn’t be worse. The government is projected to post a record $1.5 trillion budget deficit this year, followed by trillion dollar deficits for years to come.

The BigGovernment website, noting this, says there are 2 choices on how to raise this money; taxes and borrowing.  Those are the one mandated by law, but there is another option; change the law and renege on the promise.  (I didn’t say it was a good option.)  No one wants to do any of that, but the combination of a promise made, irresponsible spending on all sorts of “good” programs, and a down economy have combined to create this mess.  And now we’re broke, and our children are going to have to pay the price for our excesses.

All this is foreseeable with health care reform as well.  The creeping socialism of Europe has led it to insolvency as well.  Will somebody please learn from history.  Recent history?

And if you weren’t already realizing that the Democrats were gaming the numbers to make the costs look good, this report should (hopefully) jolt you into reality.

A new congressional report released Friday says the United States’ long-term fiscal woes are even worse than predicted by President Barack Obama’s grim budget submission last month.

The nonpartisan Congressional Budget Office predicts that Obama’s budget plans would generate deficits over the upcoming decade that would total $9.8 trillion. That’s $1.2 trillion more than predicted by the administration.

We’re broke, folks, and we’re issuing a credit card to our kids, and using it to fund our own out-of-control spending.  The money’s not there.  It’s gone.  It’s long past time to wake up to this fact before we follow Europe into the black hole.

Filed under: DougEconomics & TaxesGovernmentHealthcare

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