Read the Beforeitsnews.com story here. Advertise at Before It's News here.

By InquiringMind
Contributor profile | More stories

Story Views
Now:
Last hour:
Last 24 hours:
Total:

New York Times and Greenspan Looking to Kill Social Security

Thursday, March 25, 2010 20:01

% of readers think this story is Fact. Add your two cents.

new york times, social security, alan greenspan, wall street

With health care reform finally signed into law, a new policy battle over Social Security is quietly but unquestionably building momentum. Make no mistake — Wall Street is now doing its best to gut Social Security, and as a front-page article in yesterday’s New York Times makes clear, the media is not ready to challenge them on it.

Like every other major institution in the public and private sectors, Social Security has taken a few licks from the current recession. But the problems are simply not very serious — the entitlement program’s trust fund currently stands at a massive $2.5 trillion — that’s trillion with a “t.” If the federal government makes absolutely no changes to Social Security whatsoever, the program is currently projected to remain fiscally fit through 2037. The effects of the recession are included in that projection — prior to the financial crash of 2008, Social Security was projected to remain solvent through 2041.

But pesky facts like that are not the focus of the story from Times reporter Mary Williams Walsh, who instead highlights a fundamentally meaningless statistic to needlessly frighten her readers:

This year, the system will pay out more in benefits than it receives in payroll taxes, an important threshold it was not expected to cross until at least 2016.

That threshold would indeed be important — if Social Security weren’t sitting on an additional $2.5 trillion. Walsh dismisses the trust fund — putting the term in scare quotes and calling it a mere “accounting device.” And, in fact, the trust fund is an accounting device — just like bank reserves and dozens of other financial metrics used in the business world. What that accounting device shows is that Social Security is fundamentally stable from a fiscal standpoint, to the tune of $2.5 trillion. There’s nothing fishy about it.

If that $2.5 trillion ever runs out — which it won’t, because Social Security’s revenues will increase in a few years as the economy recovers — policymakers would still actually have plenty of options available for boosting the program. But according to former Federal Reserve Chairman Alan Greenspan, there’s only one truly viable course of action — draconian benefit cuts for seniors. Here’s the Maestro, from Walsh’s article:

When the level of the trust fund gets to zero, you have to cut benefits . . . . Because of the size of the contraction in economic activity, unless we get an immediate and sharp recovery, the revenues of the trust fund will be tracking lower for a number of years.

Greenspan, lest anyone forget, is one of the people most responsible for moving Social Security’s solvency projections from 2041 to 2037. Our current recession was caused by rampant financial excesses that Greenspan actively refused to regulate and a housing bubble that he explicitly refused to act on. To the extent that today’s government finances are constrained, the two major culprits can both be laid at Greenspan’s feet — the bank bailouts that were deployed to clean up his mess, and the lost tax revenues from job losses and plunging home values.

There’s more, read the rest at:

www.alternet.org/economy/146175/alan_greenspan_and_the_new_york_times_are_gunning_for_your_social_security

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

LION'S MANE PRODUCT

Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules

Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.

Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.

Comments

Visits:	1,812,306,912
Stories:	8,654,311