Buying Growth, Not Sustainable

There is no way to make SS “actuarially sound”, and there is no way for the government to massively distort the economy in a “business friendly way.”

It is not possible to make a sound annuity under an irredeemable currency.  The interest rate is falling, which means dwindling income for the annuity.  And of course the dollar is falling, which means one would need more income to keep even.

Taking 15% of wages is not business friendly.  If this does not discourage capital formation and investment, Social Security works its deadly intent in another way.  People are encouraged to spend what remains of their income and discouraged to save for retirement because the government will provide income and health care for them.

And now we are reaching the end of the road.  Social Security and Medicare combined have racked up unimaginable debts (I have seen estimates as high as $100 trillion).  Even if it’s half that, it cannot be paid.  And other debt cannot be paid either.

The world has bought “growth” by simply borrowing to spend.  SS and Medicare are part of this scheme.