IBD Editorial: Obama Exposes Social Security's Big Lie

There is no lockbox and never was for social security.  Some people think there is an account with their name on and that money is theirs -- WRONG!  Obama has now exposed that big fat lie with his comments.  There was no need to scare senior citizens as all he has to do is require that Social Security recipients be paid first.

The Democrat Congress pulled a coup when they took new Civil Service and put them in FERS in the late 80's which means they now pay into social security which becomes part of their pension -- Congress wanted their money but now that group is getting near retirement, what is going to happen next?

Federal employees were also put in Medicare to help solve that problem.  A lot of Civil Service only take Part A which is at no cost and keep their federal employees health insurance because they don't trust Medicare.  Great idea since FEHB is exempt from Obamacare.  I will take Blue Cross/Blue Shield over Obamacare or Medicare any day of the week.

Editorial: Obama Exposes Social Security's Big LiePosted 06:48 PM ET 

Entitlements: In trying to score political points against the GOP by warning that retirement checks were in jeopardy if the debt ceiling isn't raised, President Obama exposed the fraud at the heart of Social Security. 

The closer the self-imposed Aug. 2 deadline for raising the debt ceiling comes, the more oddly politicians in Washington are behaving — and that's saying something. 

Treasury Secretary Tim Geithner this week ridiculously insisted on a plan within 48 hours. Sen. Mitch McConnell proposed a Rube Goldberg idea to let President Obama increase the debt by vetoing a bill denying him a debt increase, or something like that. 

Obama beat everyone, however, with his scaremongering claim that Social Security checks are at risk if he doesn't get his way on the debt ceiling. "I cannot guarantee that those checks go out on Aug. 3 if we haven't resolved this issue," he told CBS News, "because there may simply not be the money in the coffers to do it." 

Wait! What happened to Social Security's "guarantee"? You know, the iron-clad assurance of Social Security benefits in exchange for paying into the program your whole working life? It's something Democrats constantly talk about, particularly when attacking Republicans who propose privatizing the program.
As Nancy Pelosi once put it: "Social Security has never failed to pay promised benefits, and Democrats will fight to make sure that Republicans do not turn a guaranteed benefit into a guaranteed gamble." 

The AFL-CIO warned in 2005 about "President Bush's plan to replace Social Security's guaranteed benefits with risky private accounts." The AARP describes Social Security as "the guaranteed part of your retirement plan." Etc., etc. 

Turns out, this "guarantee" is a lie. 

In 1960, the Supreme Court ruled that workers do not have a legal right to their Social Security benefits. Congress can cut them any time it wants, which it's done several times. And, because there are no ownership rights, if you die the day you retire after making a lifetime of payments into Social Security, your heirs get nothing. 

Indeed, Social Security's only guarantee is that today's workers will get an incredibly lousy return on the huge amount of money they've "invested" in the program. 

And what about that Social Security "Trust Fund" the Democrats rhapsodize about? Isn't it supposed to guarantee benefit payments for another 30 or 40 years? 

Truth is, the fund is nothing more than an accounting gimmick designed to make the program look healthier than it is. Obama exposed this scam as well by showing that retirees can't trust the "Trust Fund" for anything. 

These are, by the way, all shortcomings that Social Security privatization advocates have tried to point out for years, only to be shouted down by Democrats. 

In the current debt debate, Republicans could easily waylay Obama's threat about cutting off grandma's Social Security checks with a resolution ordering the Treasury to put retirees first in line for any government spending after Aug. 2. Let Democrats try to block that. 

Whatever happens, the fact remains that Obama has accidentally made a pretty good case for Social Security reform by revealing the program for what it really is. 

Source:  IBD