Obama’s Social Security Scare Tactics
“I cannot guarantee that those checks go out on August 3rd if we haven’t resolved this issue. Because there may simply not be the money in the coffers to do it.”
This quote from President Obama is scare tactics at its worst. For a President who has called for an end to demagoguery (when it’s against his own policies) he sure is good at dishing it out. The truth is – ignored by the mainstream liberal media – is that there is enough money coming into the Treasury, even on August 3rd, to send out Social Security checks. This handy chart from Goldman Sachs proves it:
James Pethokoukis from Reuters:
“there is enough cumulative money coming to pay interest, SS, Medicare and defense. Not that there wouldn’t be cash managements issues.”
August 3rd is not the beginning of “Armageddon” as the President, his Treasury Secretary and many in his party like to claim. Debt payments are not due until the 15th of the month, and by then it appears the Treasury will have collected more than enough revenue to make those payments along with all the other essential payments that the left likes to claim will not happen.
For the sake of argument though, let’s suppose that there is a shortfall on August 3rd. The Treasury currently has a balance of $74 billion. So even if there is a shortfall (in 2010 the Treasury had $5-$10 billion in revenue by August 3rd), the Treasury can draw from its current balance.
The constant fear-mongering from this White House stands in stark contrast to their hope and change rhetoric. It is just an attempt by the President and the left to raise taxes on job creators in order to pay for greater spending. Current projects don’t show our unemployment level dropping to pre-recession levels until at least 2014, so even raising taxes in 2013 – as the President admitted he would do – will undercut our fragile recovery.
The fact is that spending is the problem. President Obama, Nancy Pelosi and Harry Reid can claim the rich pay too little all they want, but no amount of tax increases will make up for the lavish spending habits of the Washington Establishment, made far worse since 2009.