October 31, 2010

Latest Pajamas Media Column (‘A Coming Government Shutdown?’) Is Up

Filed under: Economy,Taxes & Government — Tom @ 8:22 am

ObamaShuttingDownIt’s here.

It will go up here at BizzyBlog on Tuesday morning (link won’t work until then) after the blackout expires.


Related (to the longer-term problems noted in the column): There’s an interesting update of the Social Security situation based on info from the Congressional Budget Office.

Remember how Social Security’s immediate cash-flow situation, which has been slightly negative during much of the past 18 months, was going to take a breather and go positive during the next few years? Not any more (original graphic is here; HT commenter dscott):


The ultimate Ponzi scheme is unravelling. This is one more seriously negative effect of the POR (Pelosi-Obama-Reid) Economy — the effects of which, regardless of the election outcome on Tuesday, will continue haunting us to an extent through at least the third quarter of next year.



  1. Looking chiefly at SS, I see two primary issues 1 – jobs/unemployment and 2 – redeeming IOUs from a thieving Congress.

    As to issue #1, we all know the solution is a business friendly environment. On issue #2, Congress has to get up the guts to face that stealing SS receipts is wrong and must be immediately stopped.

    It seems to me some rational steps would help ease the situation if not resolve it. First, the SS trustees should be allowed to invest all receipts for actuarial needs instead of being given low interest IOUs. Second, as those IOU’s mature they also need to be reinvested outside of Congress’s reach. Thirdly, the extra incidental benefits have got to go such as the overly generous payments to survivors children as far as educational payments. It is the insureds responsibility to have life insurance to cover situations like this for their survivors, not the public’s. And finally, there has to be proportionality in the payout, it is financially destructive of the system to pay out more benefits in proportion to their contributions. Equality of Outcome arguments are a deadend when everyone gets a 25% reduction because the funds run out and starving the economy and reducing jobs by tax increases is just self defeating.

    Comment by dscott — October 31, 2010 @ 3:40 pm

  2. [...] This column went up at Pajamas Media and was teased here at BizzyBlog on [...]

    Pingback by BizzyBlog — November 2, 2010 @ 7:40 am

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