Immigration Bill Would Help Social Security?

May 9, 2013

 

http://www.reuters.com/article/2013/05/08/us-immigration-usa-socialsecurity-idUSBRE94711T20130508

According to government actuaries, the proposed immigration bill which would legalize eleven million illegal immigrants would help put social security back on sound financial footing by collecting social security taxes from eleven million more people.  (See the above-linked Reuters article.)  Wow, what a great idea! 

Why is it that these actuaries don’t also point out that social security would already be on even more sound financial footing if only we hadn’t imported all those immigrants 40 years ago, immigrants who are now drawing benefits from social security? 

The point is this:  that attempting to avoid the temporary funding problems that a stabilizing population presents by growing the population further only exacerbates the problem in the future – a problem that must be dealt with at some point anyway since never-ending population growth is impossible.  If this immigration “reform” passes, then thirty or forty years from now we will have eleven million more people drawing out of social security than we would have otherwise.  And our social security funding problem will be that much worse.

But, no, “lazy economics” – the economics of procrastination – always holds sway because that’s more appealing to everyone.  Why face up to our problems when we can put them off onto future generations?  Let’s import more social security tax-payers.  Never mind that they will draw benefits tomorrow.  Tomorrow never comes.


Inflation: Is the Government Lying?

May 14, 2008

http://www.reuters.com/article/ousiv/idUSN1341778020080514

This may be the clearest evidence I’ve ever seen that the government fudges economic statistics and lies to the American people about the state of our economy.  Check out this article.  With food and energy prices soaring by the day, the government has the gall to say:

Consumer prices rose a smaller-than-expected 0.2 percent in April as energy prices held steady, a Labor Department report on Wednesday showed.

… During the month, energy prices were unchanged…

… So-called core prices, which exclude volatile food and energy, were up just 0.1 percent…

Can you believe this?  Only yesterday, the Commerce Department reported that import prices were up 1.8% last month alone, on top of the 1.0% rise the prior month.  And yet, the CPI is only up 0.2%?!?!?! 

Why is the government fudging on the CPI (consumer price index)?  Three reasons:

  1. They’re concerned about the psyche of the stock market.
  2. They don’t want to give the Federal Reserve justification for reversing policy and raising interest rates.
  3. Most importantly, the annual raise in Social Security benefits is determined by the CPI.  They fudge the CPI to cheat the elderly out of the money they need to survive, very slowly whittling Social Security down to nothing. 

This data should prompt outrage and journalists should be demanding answers on how the CPI could be so benign when all of the evidence points to the contrary.  Will they?  I very much doubt it.  Journalists with that kind of analytical thinking have vanished, gone with the winds of globalization.

 

 


The Rising Birth Rate

December 22, 2007

There was much ado on the national news last night about the fact that the birth rate in the U.S. has ticked slightly higher, to 2.1 children per female.  It was explained that “economists” see this as a good thing, because we need more younger people to support the older generation in retirement, alleviating (at least slightly) some of the huge projected social security / medicare deficit. 

It never to ceases to amaze me that “economists” can’t look far enough down the road and question what will happen if we keep “growing” the economy in this way.  It’s because they don’t understand that a smaller population will actually benefit the economy through improved per capita consumption.  In the meantime, slightly higher taxes and tariffs on over-populated nations is all that’s needed to eliminate the projected ss/medicare shortfall. 


Follow

Get every new post delivered to your Inbox.

Join 47 other followers