Is Social Security the largest Ponzi scheme going?

That's exactly how a prettty knowledgeable friend of mine described it.

Actually, I thought it was a compelling question, so I did a little research. Here are the facts:

* Right now, the total amount of money taken in through payroll taxes EXCEEDS the benefits paid out to retirees. The excess is put in a trust fund invested in US bonds

* In 2017, the amount taken in will not cover benefits paid. It will have to be supplemented by interest from the trust fund.

* By 2027, the amount paid in plus the interest will not be sufficient to cover benefits. Hence, the government will have to dig into the principal to fund the benefits (a mortal sin according to rich WASPs)

* By 2040, the entire trust fund will be depleted.

The Good News?Social Security will be around for most of our lives. Well, on second thought, maybe not good news, but at least it doesn't suck!!!

Jewelry or Gall Bladders?

I remember when I took Econ 101, in one of the early chapters there was this tradeoff chart that depicted macroeconomic decisions that government had to make during WWII: guns or butter? In other words, in a finite world you could only produce so much guns or butter -- the more guns, the less butter and vice versa.

This sort of reminds me of the dilemma we're facing now and makes me wonder why there's so much resistance to this "millionaires" tax to fund universal health care.

It seems to me if someone is making in the range of a million dollars a year, that 5.4% tax (or whatever it is) on marginal income will definitely not be used for life's necessities. So for lack of a better term, let's say it would be used on a luxury item, like jewelry.

So, put in more basic terms, some of the politicians who are oppossed to the tax on the wealthy are saying they'd rather have their rich constituents buy jewelry than one of their poorer constituents have his or her gall bladder surgery.

What's wrong with this picture?