Wednesday, March 09, 2005

Unfunded Liability

Well there's a wrinkle in the Social Security Debate. According to Tony Blankley, the Unfunded Liability is $3.7 Trillion. That's a lot of money. I wonder how one gets that $3.7 Trillion Number. Just think if we want to solve the Social Security crisis, we would need to raise taxes by $3.7 Trillion. Think of that drain on the economy. $3.7 Trillion gone in a flash. As Mr. Blankley puts it, "That would be the largest tax increase since … well, since tax increases were invented by the pharaohs at the dawn of civilization. And we wouldn't even have a bunch of pointy buildings to show for it, because such a tax increase would slam the breaks on a growing economy, including the construction industry."

So I guess the only logical solution is to enact a program that will cost at least $3 trillion (according to Vice President Cheney), Private Accounts. Oh and don't question that $3.7 Trillion number.

Actually there are a few things I would like to know. Is Mr. Blankley carrying it out to infinity to get that $3.7 trillion? Does he assume that the Social Security Trust Fund does not exist? It's hard to know. But on a completely unrelated note, I have discovered that implementing President Bush's account will cost more than $300 trillion. I arrived at this figure through the tried and tested method of "making stuff up."

So you see if you follow the President's plan we will be in the hole almost a hundred times more than if we do nothing! If you believe my numbers. Which, frankly, I wouldn't. But then I wouldn't believe Mr. Blankley's numbers either.

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