Social Security Readings

http://www.caseyresearch.com/displayArchiveArticleWwnk.php?id=141
Week of 3/7/05
The Great Social Security Debate, Part I

http://www.caseyresearch.com/wwnk.php

THE GREAT SOCIAL SECURITY DEBATE, PART II

Necessary Reading for Anyone interested in the Social Security debate. It not only criticizes the Bush Plan for partial privatization, but provides access to Table information proving the Bush Plan gives the least benefit to Workers in comparision with leaving Social Security alone, or in comparison to the most popular Benefits-Cutting Plan. It also points out the Bush Scare tactics used to gain support for his Plan.

Why is Bush using Scare tactics in a quest to change Social Security, when he knows the said proposed change would actually harm Worker interests?

Some claim Bush wants to destroy the Social Security system, as an ideological tenant of basic NeoConservatism. There may indeed be some element of such theology in the Bush Plan, but closer practical concerns lay at the heart of his desire. Bush never expects to need Social Security protection for himself or his family and Associates. He additionally does not expect to still be alive, when the horror of his desired machinations bloom. Loss of social protection will never mean anything to him or his Class. The Author resorts to what Some would claim to be 'Class warfare' to simply highlight the Wealthy, Corporate Leadership, and Business interests want to make Money from Social Security alteration; they couldn't care less about saving the system.

What and How could manipulation of the Social Security system benefit current leadership?

1) Privatization dictated by the Administration would insist at least half of said privatized funds be invested in Bonds. Read this to mean U.S. Treasuries. Foreign central banks are tiring of purchasing American Debt paper, and Bush has literally no intention of Tax Reform extracting greater Tax revenues from the Income level to which he and his supporters belong. His Privatization plan is simply a hidden Tax extraction to force Labor to fund the Federal debt created by the Bush Tax Cuts.

2) American Corporations have already taken all possible measures to cut Production Costs, mostly by dismantlement of Employee protections and benefits through Downsizing, Outsourcing, and Offshoring. They are still being pushed by higher Production Costs alongside shrinking Profit margins. The new economic environment barely pays for their soaring Pay packages for Corporate Executives, after those stockholding Pests insist on their Dividends.

3) Corporate Executive personnel really need to make more of those Dollars, especially as they do not have to pay Taxes much now. An excellent method is to use Stock Options and Stock Grants; the Later finding greater favor today, because Stock prices are not rising much in the absence of Profits. They are even showing a horrid pattern of dropping Stock pricing, in the absence of Dividend payments.

4) They have a brilliant plan, though, called Bush-inspired Private Accounts for Social Security. It guarantees a continual flow of funds into the Stock market. Stocks will rise in Price because of increased Demand for Stock, without real need to generate either Corporate Profits or Dividends. They can keep issuing those Stock Grants (Stock Options doubtful) with a Demand-driven Stock market, and keep increasing Pay packages for Executives based on Product pricing increases--All to ignore lack of Profits and Dividends.

What will happen to actual equity?
Sorry, the Author's Momma warned him against talking dirty. lgl