Let's try this again: No, Social Security is NOT insolvent.

[exboyfil]

18. Spot on analysis

I will go even one more step. What if obligations can be voted away by a simple majority in Congress and a presidential signature? Obviously you can default on any debt, but would some future Congress view a default on S.S. debt differently than to your other creditors? What would the markets think of such an approach? Would it become harder to to obtain debt in the future or easier? My guess would be it might be easier. I am not saying that it will happen, but the only way it will not happen involves the political will of the people. Already working class folks have gotten a taste of 2% less withholdings. This was simply an awful idea. Second only to the idea of a Trust Fund without covenants in place to stop additional debt from being acquired.

How about a joint proposal to scrap S.S. and raise the minimum wage by 7.5%? Immediately working class folks will have a huge boost in their incomes (15%). 20 years ago my Law professor asked who would opt out of S.S. if they could. When I made a lot less money, I raised my hand. 20 years later I might still raise my hand (I still have another 19 years of working life until I draw S.S., and I will be able to conservatively save more than the benefit in that time with the money from the withholdings). Before you criticize me ask the California teachers if they would raise their hands to being rolled into S.S. instead of their current retirement system (or in addition to their current retirement system)?

Frankly I think S.S. should apply to all income and the rates should be adjusted downward to reflect a pay as you go. Trust Fund should be drawn down once the economy gets better, but the first step is to lift the cap.

S.S. is not insolvent, but its biggest (only) debtor may be or may act like it is with impunity.