Social Security

This morning I got an email about Social Security from a friend. The email said that the US Senate had recently voted to extend Social Security benefits to illegal aliens. It contained a petition directed at the Whitehouse urging the president to veto this legislation should it become law. The email prompted me to blog a bit about Social Security.

I have spent most of my adult life thinking and saying that the Social Security system was going to go broke and that I would never live to see a penny of that money which I had paid in over the years. I now believe that I was wrong. Don't misunderstand me. I still think that Social Security is a very bad idea. I've been in enough Multi-Level Marketing plans over the years to know that Social Security is going to end badly. What I was wrong about is how it is going to end. I recently read an article where the author was describing his take on what the future held. One of the things he mentioned was the effect that the boomers were going to have on Social Security. He did not think that Social Security was going to go bankrupt. In fact he maintained that they would pay out every dollar they promised. The only change he predicted for Social Security was the phasing out of the Cost Of Living Adjustment (COLA).

He predicted that the government will continue to create ever increasing amounts of money just as they are doing now to "fight the current economic crisis." Social Security payments will be one of the things that will be paid with this new money. The introduction of all this new money into the system will ultimately lead to price inflation. So, rest assured, you are going to get your $1500 a month or whatever the SSA is promising you, but you probably won't be able to buy too much with it.