Friday, January 3, 2025

Print our way out of the so-called Social Security crisis: it's legit

 Print our way out of the so-called Social Security crisis: print new bonds and stuff them into the so-called Trust Fund: problem solved.

No need to worry about causing inflation -- or anything else -- from printing this money.  It is just part of a mechanism that converts income tax revenue into Social Security retirement outgo.

From 1983 until 2010, FICA took in more revenue than retirements paid out.  For those 27 years, the left over FICA revenue was used to pay for so-called "on budget" items like court houses and bridges and aircraft carriers and FBI salaries.

For 27 years the FICA overage was credited to the so-called Trust Fund to be drawn down when -- in the course of time -- FICA underage could not completely keep up with expanding retirements outgo.

It now looks like said Trust Fund may only be able to fill in for retirements payouts shortfalls until 2035.  Then what?  DID THE CONGRESS OF 1983 HAVE SOME PRESCIENT KNOWLEDGE THAT THE WORLD WAS GOING TO END IN 2035?  If not, what was the point of it all?  To fill in for FICA shortfall until it gradually reaches its worst -- and then cut off all fiscal backup when it's needed the most?

Maybe it was to take money from workers when per capita income was lower to cover taxes on earners when per capita income should be a good deal higher.

Does anybody want to start another so-called Trust Fund, today?

Meantime the artificial crisis can be avoided by rolling out the printing presses and pumping out "Monopoly money" as necessary.