Posted by
zapdoodat on Friday, February 01, 2008 12:20:35 AM
Fred Thompson was asked during a Republican Presidential debate to name one thing he would cut from the federal budget. He said, "privatizing social security would be a budget cut that I will push for." WRONG.
Nothing could be further from the truth; privatizing social security.….is a short to medium term spending INCREASE.
Under their most rosy of scenarios the private account system doesn't pay off until the young people that use it start to retire 30 years from now. As young people divert their funds from the Social Security trust fund to their own retirement accounts then two to three trillion dollars will have to be borrowed, most likely from the Chinese, to pay those already retired and those nearing retirement.
Let's see, one trillion dollars at a 5% interest rate is $50 billion a year. It's time to look at this $100-$150 billion per year spending increase with eyes wide open!