The Virginian Pilot Fixes Social Security

… we need to move quickly so baby boomer retirees can deal with the fact that Social Security benefits will have to be cut, and taxes raised. Those are the solutions for Social Security’s problems that the president has assiduously avoided mentioning….

There you have it, Baby Boomers, your social security benefits have to be cut and taxes raised.

We tried to get the editorial writer on the phone but were not entirely successful. Had they agreed to talk, the conversation may have gone something like this:

Virginian (V): Read your editorial about cutting Baby Boomer benefits and raising taxes. Baby Boomers are going to be retiring in about 5 years and are counting on their benefits. That’s not a long time to change the plans of a lifetime. Do you think that’s playing fair?

Virginian Pilot editors (VPE): Look, we have no choice. The Boomers are just going to have to suck it up.

V: If we raise taxes, will that solve the problem?

VPE: Sure. The added taxes will go into the Social Security Trust Fund and that will be used to pay benefits.

V: I’m a little hazy on the Social Security trust fund, can you help me out?

VPE: Sure. After all, we are the fount of wisdom here in downtown Norfolk. Ask away.

V: Well, tell me about this trust fund, and is that the same thing as a lockbox?

VPE: I see you have a lot to learn. The lockbox was the place Al Gore wanted to put the Social Security payments, but Bush (aka smirkingchimphitler) would have none of that. So Social Security payments go into the Social Security trust fund.

V: Ok so there is this big pile of dollar bills in this trust fund, sort of like my savings account at the bank?

VPE: Well, not exactly. The trust fund holds government bonds.

V: Where did the dollar bills go?

VPE: Oh, they were used to pay for current government programs.

V: So, just to be absolutely clear, there is no cash in the trust fund. Just a pile of government bonds?

VPE: Sure. But you know that government bonds are safe, and the government can cash them in to pay for the benefits.

V: OK, but when the government starts to cash the bonds in, where will it get the money? I mean, will the Social Security trust fund turn to the treasury and give it a bond and ask for cash? After all, the government doesn’t have the income it needs now and keeps borrowing money to pay for its programs. According to the Social Security administration “…tax income will begin to fall short of outlays in 2018.” So by 2018 Social Security is going be paying out more money that it’s taking in. Where is the cash that retirees are counting on going to come from?

VPE: Like I told you when I wrote the editorial, we’re going to cut retiree benefits and raise their taxes.

V: That’s your answer? You criticize Bush for trying something new and your answer is to cut benefits and raise taxes? That’s the best you can do?

VPE: Shut up kid, you bother me.