Proof of how insane Bush is (Social Security).... [View All]

... all I've been reading about this week is the decline of the dollar and how the Federal Deficit is making it harder and harder to round up foreign loans to keep the whole thing going, and now this:

Bush's Social Security Plan Is Said to Require Vast Borrowing:

http://nytimes.com/2004/11/28/politics/28secure.html?hp&ex=1101704400&en=cd5a720c6da1c654&ei=5094&partner=homepage

<snip>
Proponents say the necessary amount of borrowing could vary widely, from hundreds of billions to trillions of dollars over a decade, depending on how much money people are permitted to contribute to the accounts and whether the changes to Social Security include benefit cuts and tax increases.

Borrowing by the government could be necessary to establish the personal accounts because of the way Social Security pays for benefits. Under the current system, the payroll tax levied on workers goes to benefits for people who are already retired. Personal accounts would be paid for out of the same pool of money; they would allow workers to divert a portion of their payroll taxes into accounts invested in mutual funds or other investments.

The money going into the accounts would therefore no longer be available to pay benefits to current retirees. The shortfall would have to be made up somehow to preserve benefits for people who are already retired during the transition from one system to the other, and by nearly all estimates there is no way to make it up without relying at least in part on government borrowing.
</snip>


I mean, that idiot and 'fiscal conservative' has actually found a way to make Social Security even more expensive.