An editorial in today's Startribune lauds Congressman Sabo's alternative plan to save Social Security. His idea - simply pass a law increasing the interest rate the federal government pays on the federal bonds held by the Social Security trust fund from 3.3 percent to 4.7 percent. What a great idea. The only thing I can't understand is why he wants to stop with a measly 1.4 percent increase. Why not raise the interest rate to fifty or seventy-five percent. That way we could all retire at age thirty five. Wouldn't that be nice. Right now I could leave my law books behind and hit the links full time. I could be in Florida right not basking in the sun watching spring training games.
But....???? The Social Security trust fund used to buy those bonds come from tax dollars, and the bonds, if they are ever going to be worth anything, need to be paid back with tax dollars. Doesn't that mean that for every dollar saved through the good congressman's plan I will have to pay pack with a dollar of additional tax revenue? Wait a minutiae! Wouldn't the same thing be true for the entire Social Security trust fund? If every dollar in the Social security trust fund needs to be paid by taxing the American people does that mean there really is no trust fund? Damn! Maybe I should wait before I buy that retirement condo in Florida.