Unless you happen to have $4 trillion in cash, there is no way to pay back current participants. The Bush plan contained two elements. One was to borrow the "gap" between benefits owed and the funds available from current tax payments (with repayment over 30 years) while diverting a portion of current tax receipts to user controlled investment accounts. The other part was a reduction in benefits. It was a smoke and mirrors plan that basically sought to conceal the fact that the accumulated debt owed to the trust by the US government was being written down and paid for with benefit cuts. Social security as it stands now is virtually self financing. It has generated trillions in surpluses over the last 25 years, and continues to generate surpluses today. What is not self financing is the US government, and it hasn't been since Clinton was in office (even then it was only self financing briefly). The Bush plan did nothing at all to address that problem.
Originally Posted by Cody Covey
And what has the Obama plan done to address the problem??
Originally Posted by YardleyLabs