Thursday, March 24, 2011

How the Government Lies to You | Intellectual Takeout (ITO)

Simply put, once your money goes into Social Security it is not your money. Angry? You should be. The idea that Social Security is anything more than wealth redistribution from the young to the old is a lie. Yes, a lie that you have been told ad nauseam.

Furthermore, Social Security is essentially bankrupt now. Not in 2037, but now. There is no trust fund since the government looted that. Worse, Social Security is in negative cash flow already. In other words, the government is now paying out more in Social Security than it is actually taking in. Consider that in 2010, Social Security ran a deficit of $37 billion. The projections from the Congressional Budget Office (CBO) show no signs of positive cash flow for the next ten years. This chart from using CBO data tells the story: