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Reply #50: He is talking from an economist's point of view [View All]

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happyslug Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jul-02-10 04:14 PM
Response to Reply #46
50. He is talking from an economist's point of view
AS far as economists are concern, you have only three types of transactions:
1. Purchase of Goods
2. Purchase of Services
3. Transfers from one person to another who then buys goods and services with the money.

So what is Social Security? Social Security is a transfer of money from people who pay into Social Security to people who are recipients of Social Security (SS). There may be some delay as any excess Social Security Tax is sent to the Treasury Department to hold. The Treasury then uses that money to BUY other Goods and Services (including the Service that the Money will be paid back). Thus all Social Security (SS) Tax money is either a transfer OR is used to buy Goods and Services and the Commission wants to cut back on the TRANSFERS not the purchase of Goods and Services with the excess collected SS Taxes.

Furthermore, Social Security, when transferred to recipients, is used by Social Security (SS) recipients to buy Goods and Services. When the excess is transferred to the Treasury, it is used to buy Goods and Services.

The problem, as the writer points out, is NOT such transfers, it is NOT even taxation, the problem is private banks are NOT loaning money and no one wants to address that issue. What can we do to get banks to loan out money? North Dakota seems to have found a solution, it is the only state with its own bank, but no one wants to look or even study why that is working for they have already rejected that proposal for the Private Banks oppose such a solution.
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