dick durbin

Social Security Sham

It is a national tragedy that people may be willing to put aside the issue of Social Security reform because Congressional Leaders on the Democrat side – such as Dick Durbin and Harry Reid – have been standing behind the position that Social Security is not a problem. While discussing the impending “fiscal cliff” negotiations last week, Harry Reid proclaimed (yet again), that

“Social Security is not part of the problem, That’s one of the myths the Republicans have tried to create,” he said. “Social Security is sound for the next many years.

Reid justifies this outrageous and distorted view by asserting that Social Security is not adding to the current deficit since the the cash in and out is roughly the same. While that may technically true, it is technically true only in the sense that it is analogous to an individual who is running up millions in credit every day — and then that person says that since he doesn’t have to pay it back right away till next year or the year after, it doesn’t affect his immediate budget.

The fallacy of this logic is that although the Social Security cash in may be equal to the cash out, the cash in includes everything we are getting, while the cash out doesn’t include the responsibilities due to come. The cash out formula they are referring to excludes the trillions that are being promised to existing workers in the future while their Social Security tax is being collected today. As the years go by we are continuing to incur the deep cost of future payment obligations that the Democrats are conveniently not accounting for – and it’s going to get impossible to pay those bills when they come due. Yet, those obligations are every bit as real as charges on a credit card.

Equally disturbing is the fact that the media is complicit in promoting this fable. Each year that that passes without fixing the system creates trillions of additional deficit to be paid by our children and grandchildren. Our media is feeding the Democrats’ incompetence by promoting their sham and failing to report the truth about the insolvency of Social Security.

(crossposted at redstate.com/alanjoelny)

Dick Durbin Defends Social Security

by | SOCIAL SECURITY, TAXES

Dick Durbin has a love affair with Social Security. How else can one man continuously defend Social Security and mislead the country about its insolvency? He incessantly claims that Social Security does not add to the deficit. What he doesn’t tell you is that is he specifically and purposefully excludes accounting for the billions in promised future payments to workers.

And consider this: A company or organization earns $100.00 but spends $200.00. It only has to pay $100.00 now, while the other $100.00 is due for payment in the future. The question then becomes – to what extent is there an obligation to account for a method of repayment, should you have no money to do so? This is the very situation that Social Security is in. In contrast, the SEC is very explicit in saying that any company which tries to avoid accounting for obligation repayment will be considered to have issued a dishonest financial report.

Yet this is exactly what Durbin has been saying for years – when will he be brought to justice and held accountable for his outright lies?

Dick Durbin On Social Security

by | SOCIAL SECURITY

In another example of reckless rhetoric, Senator Dick Durbin recently stated on Meet the Press that Social Security does not add one penny to the deficit. Of course, this idea is only technically true in the sense that the payments to fund Social Security are being stolen from present day workers who have every right to believe and expect that the money taken out is set aside for retirement pensions. Only someone who has no contact with economics, accounting or the actuality of funding an organization could be as boldly ignorant as Mr. Durbin has been.

Even worse, Durbin went on to claim that untouched, Social Security will make every promised payment for more than 25 years. What an outrageously incorrect statement. There is no money available from any actuarily sound fund of money from which these payments can be made. Social Security is bankrupt and Mr. Durbin knows it. It is despicable that a Senator can boldly lie to the public without rebuke on such an important topic as Social Security.