The Looting of America
Reagonomics, Clintonomics & Enronomics
by Al Martin
No matter what Republican political economists says, Reaganomics in the final analysis can not be justified because you can not defend the indefensible. You cannot get around the fact that the Reagan Bush Regime came into office with a $1 trillion accumulated National Debt and the Social Security Fund (both the General Fund and Disability Fund) was fully funded. They came into office with all the other 43 Public Trust Funds, such as the Indian Affairs Fund and the National Reclamation Fund, fully intact and funded. Most importantly, they came into office with the United States being the largest creditor nation on earth.
Twelve years later, when the Reagan Bush Regime left office, they had expanded the National Debt from $1 trillion to $5.65 trillion. They had created a total long-term deficit in the Social Security General and Disability Trust Funds of some $3.2 trillion. Then in 1983, they started to say that we are henceforth going to count social security contributions as surpluses to the Fund, and we will count them now as General Revenue. To offset the drain, we will place non-marketable, long-term, US Treasury Bonds with a 3% coupon rate into the Social Security Trust Funds. In other words, we will stuff the Social Security Fund with worthless paper.
thanks to SmirkingChimp.com