Question time. Usual rules apply; questions in italics, answers in plain text, my comments in parentheses
First Q – Why hasn’t anybody overlaid the current SocSecurity fund surplus (that has been spent on everything but SocSecurity) onto the programs? Steve – Funny you should ask that. Part of the Power Point presentation has just that. In 2017, those surpluses go away permanently. SocSecurity return is much worse than even bonds. More people believe in UFOs (the Kookcinich crowd) than in SocSecurity.
Q 2 – Is David Walker right in saying the total federal unfunded liabilities $70 trillion through 2052? Steve – Roughly. However, unlike Walker, I believe we can grow our way out. Many countries are headed toward private retirement systems.
Q 3 – Doesn’t Congress get it on earmarks yet? Steve – It’s like a drug. The Senate Pubbies were the ones that killed the Bush plan to ignore the earmarks that weren’t actually written in the bill. It might take another election. Rich – We know the Bridge to Nowhere leads to the minority. Robin – Nobody thanks you for saying No (an audience member does thanks them). Make that almost nobody.
Q 4 – Is Bernake doing the right thing regarding inflation? Steve – The biggest problem is the devaluation of the dollar. The only question Bernake wouldn’t answer in depth is the “Is the dollar too weak?” question, though he said, “The dollar should be strong, next question.” The reason oil is expensive is the dollar is weak and oil’s a commodity. If the dollar were strong, we’d be at $30/bbl instead of $90/bbl.
Q 5 – “I want my SocSecurity money back!” Steve – (missed the longer answer; will have to review the tape). One term term limits.
Q 6 – Back when certain classes of employees could opt out of SocSecurity, I helped my clients become millionaires. Steve – Sounds familiar. I’ve got a story about a UPS employee who earned no more than $40,000/year, but took 15% of every paycheck and bought UPS stock. When he died, he had a $64 million estate. Morever, SocSecurity is guaranteed for nobody. (Another member of the audience) How would the private accounts be protected? Steve – They’ll have to work on that.
Q 7 – What’s going on with the Frankenstein veto? Robin – Its death is coming to a ballot near you on April 1 because e somehow got the Senate Dems to agree to kill it in its second consideration. Follow-up; is it going to be clear? Rich – Yes.
