Another Social Security For Dummies

First, we noted a website and pamphlet using the name “Social Security for Dummies”. Now Publius at Legal Fiction has a post with the same title. He writes there are pretty much three things you need to understand about Social Security today.

Point 1 — seniors today get their money from cash that workers today pay into the system, not from money that the seniors themselves paid into the system.

Point 2 — diverting money into private accounts, if it were to happen today, would cause a shortfall in the money needed for Point 1.

Point 3 — thus if private accounts were to be put into place, the government has to get money from somewhere else. That somewhere else could be: 1) government borrows; 2) reduce the benefits; or 3) some combination of above.

And that’s pretty much all you need to know. With private accounts, the government has to borrow massively while at the same time reducing benefits. How does that sound to you?