ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, August 7, 1996 TAG: 9608070021
SECTION: EDITORIAL PAGE: A10 EDITION: METRO
SOURCE: WILLIAM E. BUTTERFIELD
WITHIN THE PAST few months, there have been various comments that the Social Security Trust Fund will be exhausted early in the next century. There are also veiled attempts to blame senior citizens because they're living too long compared with their life span when the present system originated.
But there are very few comments about the $500 billion that has been appropriated from the trust fund by present and past administrations. These "borrowings" have been approximately $50 billion per year and have, in effect, been used to show smaller annual deficits than had actually accrued. Not only has this been misleading and dishonest, but it's been done for political gain, with complete disregard for the long-term effect.
Most printed articles are careful to avoid this fact. Their authors are thus as dishonest as the various administrations. If all these borrowings are to ever be repaid, this will have to be done by taxpayers at that time who also contributed to the trust fund the first time around!
It's further pointed out that President Bush reluctantly agreed to a $90 billion tax increase on the firm understanding that this extra income was to be used toward reducing the national debt. This agreement was ignored, and the deficit was allowed to increase. Not only was the $90 billion spent, but additional borrowings were required, which further increased the national debt.
Deficit-reduction budgets proposed by the present Republican Congress were twice vetoed. And to avoid a full government shutdown, other trust funds, in addition to Social Security, were "raided," including trust funds of federal employees. This robbery will also have to be repaid by taxpayers.
It appears that the most acceptable plan for equitable Social Security retirement is that which has been established for some years in Chile. Average workers there are becoming quite wealthy and should be able to enjoy a retirement free from money worries. But this system will never be applied in America because it was not invented here, and thus cannot be claimed by any political party.
There has to be a comprehensive attack to achieve fiscal sanity and stability. The steps should include:
Drastic cuts in wasteful government programs.
Separating trust-fund incomes from general-fund incomes.
Adopting the Chile approach for Social Security.
Developing annual surpluses so the national debt and attendant interest payments can be reduced.
Without the millstone of the national debt and additional annual deficits, desirable social programs could be easily funded. Taxpayers also could be ensured a steady reduction of their tax burden.
America could then return to being the "richest country in the world."
William E. Butterfield of Blue Ridge is a retired textile engineer.
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