The Myth of the US Social Security Shortfall Dependency Issue ( Too Many Retired People)
Executive Summary
- A major item used to promote cutting Social Security benefits has been the dependency issues.
- This is a fake issue created by private banking interests to cut spending they do not like.
Introduction
This ploy by private banking interests to get reductions made to the Social Security system that benefits private banking is repeated ad nauseam by mainstream economists and media. It mistakenly uses the idea that the government is limited in spending by its taxes collected, which is not true.
The falseness of the claim is explained in the following quotation.
“We know our government neither has nor doesn’t have dollars. It spends by changing numbers up in our bank accounts and taxes by changing numbers down in our bank accounts. And raising taxes serves to lower our spending power, not to give the government anything to spend. Should our policy makers ever actually get a handle on how the monetary system functions, they would realize that the issue is social equity, and possibly inflation, but never government solvency. They would realize that if they want seniors to have more income at any time, it’s a simple matter of raising benefits, and that the real question is, what level of real resource consumption do we want to provide for our seniors? How much food do we want to allocate to them? How much housing? Clothing? Electricity? Gasoline? Medical services? These are the real issues, and yes, giving seniors more of those goods and services means less for us. The amount of goods and services we allocate to seniors is the real cost to us, not the actual payments, which are nothing more than numbers in bank accounts.”
Source: Mosler Economics