| BUSINESSWEEK ONLINE : FEBRUARY 22, 1999 ISSUE | ||||||||
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| READERS REPORT
Robbing Social Security to Pay the General Fund? The Clinton Administration continues to parrot the mantra ''Save Social Security now,'' yet the President wants more of the very same government programs that in the past have raided money from the Social Security Trust Fund (''Advantage, Clinton,'' News: Analysis & Commentary, Feb. 1). For many decades, the U.S. government has indulged in the habit of taking money out of Social Security funds to bolster its other programs. This off-budget spending of Social Security funds is possibly the biggest threat to elderly Americans' retirement plans. Why has Clinton not demanded legislation to end this intra-fund ''borrowing''? If Bill Clinton is not willing to cut off the politician's spigot to off-budget spending, then we simply cannot trust anything else he has to say regarding Social Security, including his plans to ''invest'' in the stock market. Richard Fry Austin, Tex. President Clinton proposes shifting $2.7 trillion in general revenues to the Social Security Trust Fund over the next 15 years. Your article does not explain the impact of this process. Since the Social Security Trust Fund exists only in the form of IOUs from the General Fund, the only reason a surplus in the General Fund can be declared is because the money borrowed from the Social Security Trust Fund is entered without recognizing its source. So money borrowed from the Trust Fund, which is declared surplus, is to be paid back to the Trust Fund, where it will be borrowed again for use in the General Fund, since that is the only place it can legally be invested. Why does this ''save'' Social Security? Just a year ago, it was predicted that it would take several years before this phony surplus could be generated. This has been typical of the government's ability to project budget estimates. The phony surplus is the result of a hot economy driven by technology, low interest rates, and low inflation. Ralph Strong Glen Burnie, Md. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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