Some commentators and politicians have been suggesting, based on a variety of rationales, that Social Security payments will definitely, without question, be made on time next month, even if the debt ceiling isn’t raised — and that any suggestions to the contrary by the Obama Administration is a lie. Those folks appear to be incorrect.
Not to knock you off your hobbyhorse, but it’s not just conservatives who are making that suggestion.
Fair enough, I will change the wording of the post. I’m not trying to single out conservatives on this one. I’ll leave that to other posts. 🙂
The point is that the facts and logic underlying this argument, whoever is making it, does not appear to be correct. In normal times, Social Security may exist in some sort of quasi-lockbox, but in the bizarre circumstances we could find ourselves in soon, where cashflow is king, that’s not true anymore.
Well I didn’t read your article, and I’m far from an expert on this stuff, but the facts and logic in the HuffPo piece I linked to appear sound.
P.S. I don’t know which commentators and politicians you’re talking about, but I haven’t heard anyone say that SS payments will “definitely, without question” continue even if the debt ceiling isn’t raised (predictions made with such confidence have actually come more from the sky-will-fall-unless-we-raise-the-debt-ceiling crowd, but I digress). Rather, I suspect that what has been suggested by most of the folks you’re probably referring to is that SS payments need not necessarily be suspended in the absence of an increase in the debt ceiling:
In other words, the ball would be in Treasury’s court re SS.
Confirming Joe Mama’s point, it all boils down to political will. The fact is, it can be done, and even if it was of questionable legality, by the time the courts adjudicate, the debt ceiling impasse will have been resolved and we’ll have been caught up on our payments. Unless of course, someone sues for a preliminary injunction (and really, who would sue to stop SS payments other than for purely partisan purposes?) or decides not to test the gray area (and really, who would refuse to test the gray area and withhold SS payments except for purely partisan purposes?).
IOW, the idea that Obama is willing to run roughshod over due process, precedent, and fine legalities in the implementation of TARP and the auto bailouts, but is too afraid to tap the Trust Fund to send out SS checks, is downright laughable.
I dunno, this has given me an evil idea. If we go into default I think Obama should make clear to the Republicans that nobody living in their district will be getting a Social Security check. And than their congressional staff budget will be immediately zeroed. Really, just cut any federal money that goes to Republican districts first.
If we go into default I think Obama should make clear to the Republicans that nobody living in their district will be getting a Social Security check. And than their congressional staff budget will be immediately zeroed. Really, just cut any federal money that goes to Republican districts first.
Yep, no fanaticism or irresponsibility here…just move along folks….
dcl #7 – please return to your pod and release the much-smarter-Dane I met in DC !