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Hernando Today

Earth To Mr. Dunlap: Social Security In Dire Straits

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The Tampa Tribune

Published: August 21, 2008

Mr. Dunlap, now that I know where you're coming from, I would like to "beam up" a response. First, if you feel uncomfortable talking to my 3-year-old granddaughter about Social Security, I will substitute the 9-year-old with this warning: She knows 2 plus 2 doesn't equal 5.

Speaking of basic arithmetic, a 1980 Social Security retiree contributed an average of 5.15 percent in Social Security taxes for every dollar earned; workers today contribute 12.40 percent of every dollar. In 1980, retirees had 7.25 percent more of their weekly paychecks available for savings, investing and creating wealth. In 1980, Social Security IOUs, that is future obligations created when Social Security tax overpayments are transferred to the general revenue fund and spent on something other than intended, totaled $25 billion. Today, Social Security IOUs total $2.3 trillion. Politicians are using transferred Social Security trust fund cash to offer up targeted "wealth enhancement" tax breaks, and incentives to individuals and corporations. Mr. Dunlap, if it looks like a duck, waddles like a duck and quacks like a duck; it's a Weapon of Monetary Destruction (WMD).

You say Social Security isn't in trouble. That's like saying a car speeding toward a brick wall at 100 mph isn't in trouble, simply because it hasn't smashed into the brick wall yet. In this case, 78 million baby boomers are beginning to retire, and they won't accept a Social Security IOU as a benefit check, anymore than you would. You say Social Security surpluses are to be invested, then you say the surplus is to be converted into debt, then you say "money held by the trust fund should cover any shortfall." Which is it, an investment (interest paid to you), a debt (interest paid by you) or money (spendable wealth)? You can't have it all three ways.

Stop and think, Mr. Dunlap, you and I wouldn't be having this dialogue if the 1983 reform wasn't fraught with deceitful motivations from day one and sold to the American people as a 75-year solution. The ongoing vigil of silence has made you and me unwitting partners in a Social Security's special obligation bond (SOB) program that has one generation financially water boarding another.

Yes, 40-plus million retirees are entitled to their Social Security benefits, but it can't be at the expense of 100 million-plus obligated hard working Americans who are entitled to their retirement future. We must recognize that future generations will be much better off financially when and if we, "the entitled," engage in constructive civil discourse with those who are obligated and agree upon a fair and equitable solution. This won't, and can't happen, if we continue to dance the same old dance to the same old tune. So, in closing, Mr. Dunlap, may I respectfully decline this dance, as I quit the "Social Security kabuki" several years ago.

Just one more factoid: The Social Security tax rate has not been the same since 1983; it was 10.8 percent then, and 12.4 percent now. To discuss my 35-year solution to the Social Security issue, readers can e-mail me at jg@americaretoday.com.

Jim Gries

Weeki Wachee

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