Is Al Gore's idea of a "Lock Box" for Social Security a good idea or not

[Winterblues]

If it is a good idea why aren't we suggesting it, or are Democrats as guilty of raiding Social Security as the Republicans are? I would like to see Social Security funds protected...

[Craftsman]

1. The covert is bare in the regard

The sad truthis SS is no a ponzi scheme, The taxes I pay are going to those who are retired now. I am planning for a retiremen, if I get to retire with either very little SS or no SS. And we are soon going to be at a point where the money paid in does not cover what is going out.

[laughingliberal]

2. The lock box was an excellent idea. Good luck finding anyone to champion it, though

Look for them to start cutting benefits soon as we saw during Chairman Bernanke's statements last week. Truth is SS would be solvent if they had not been spending the revenue from SS on other 'priorities.'

[Craftsman]

5. True,

[ret5hd]

3. Where should excess funds be invested?

[Winterblues]

4. How about Treasury Bonds or some such?

Maybe even "Municiple Bonds" to help out small communities. Bonds don't pay all that well but they are usually quite safe..

[ret5hd]

6. What are the excess funds invested in now?

From http://www.ssa.gov/OACT/ProgData/investheld.html :

The Social Security trust funds, managed by the Department of the Treasury, are the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds. Since the beginning of the Social Security program, all securities held by the trust funds have been issued by the Federal Government.

There are two general types of such securities:

special issues—securities available only to the trust funds; and
public issues—securities available to the public (marketable securities).
The trust funds now hold only special issues, but they have held public issues in the past.

[Junkdrawer]

7. By law they already are invested in Treasuries. Here's the problem:

When FICA taxes exceed SS payments, a surplus is created. That surplus is lent to the government (via Treasuries) and the money is used to pay for the Pentagon, bailouts, etc.

Now, when SS needs those funds paid back, the government will claim poverty and will insist that the system return to pay-as-you-go. Feinstein et al are already demanding this.

[Junkdrawer]

8. PS: Here's the details:

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=6993223

[laughingliberal]

11. Man, that pisses me off.

A permanent commission charged with the task of stealing our money. It needs to stay in the hands of Congress. They, at least, have to face the voters. Would be nice if some nice, liberal group could target some ads in the districts of the Senators pushing for this. It will happen without most people ever knowing about it.

[Junkdrawer]

12. As well it should us all.

Ronnie Raygun "saves" Social Security in 1983 by jacking up FICA taxes on the poor and, the minute the poor need the money back, boom "sorry, we're broke."

:mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad:
:mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad:
:mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad:
:mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad:
:mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad:
:mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad:

[Hannah Bell]

14. they shouldn't be collected in the first place.

[MH1]

9. It was a good idea when there was a projected budget surplus

as there was at the time Gore suggested it.

Now, I am less certain of whether or not it is objectively a good idea or not, but in any case it will be MUCH more difficult politically. Probably not worth the political capital.

[liberal N proud]

10. If they just put back the funds they took from SS for war and other means

the program would operate just fine.

[Hannah Bell]

13. it's an impossibility. any excess ss monies collected must, by 1936 law,

be invested in us gov't securities, iow borrowed by the us gov't.

if you don't want the gov to borrow ss monies, reduce ss tax rates.

[Cleita]

15. It was raided during the Bush administration by both parties for

wars and other profit making adventures. They are afraid to shine a light on it lest we see the truth.

[ProgressiveProfessor]

16. That idea has been around since before Gore invented the Internet

An no administration or major party has stood up for it

[Statistical]

17. Lock box is utterly stupid as long as we are debtor nation.

Think of nation debt as credit card. $14T credit card.

Now think of SS lock box as a checking account.

Would you leave your cash (say $8,000) piled up in a no interest checking account while you credit card debt ($14,000) racks up interest you pay to the bank (China and other bond hoolders).

No nobody would do that. would be downright stupid. You could take the $8,000 pay down the credit card and pay half as much interest each year.

Now if you then kept a book of IOUs on how much money you owe yourself that would be the system we have.

The remaining CC balance = public portion of national debt.
the IOU book = private portion of national debt.

The lock box would only make sense if we were debt free, had balanced budget, and had serious constraints on how/when Congress could issue debt.