Cong. Bacerra uses his wallet to explain why Social Security isn’t a problem

I think the analogy would’ve been much more appropriate had Congressman Xavier Becerra pulled out one of his credit cards instead of his daughters US savings bond, but that’s just me. I’m posting the soundbite not because I think it has anything to do with the debt crisis, but to show you one more example of how Democrats will spin any lie to save one of their precious programs.

In this clip Bacerra is trying to make the point that social security is not part of the debt problem because it’s fully funded. When Brett objects that SS holds only promissory notes which eventually must be paid  instead gets snarky, which seems to be every Democrat’s modus operandi. He likens the promissory notes in the Social Security trust fund to US currency and US savings bonds. Other than his condescending attitude toward Brett Baier and the audience, any monetarist will tell you there is a huge difference between currency and a debt bearing instrument.


Two quick points: debt bearing instruments such as bonds or the promissory notes held by the Social Security trust fund are not  currency. They need to be redeemed first for currency, but they by themselves are not. Secondly,  Congressman Becerra is right, the promissory notes held by the Social Security trust fund are very much like a savings bond except the savings bonds earn higher interest. Furthermore the savings bonds are a voluntary loan to the federal government in exchange for interest. The promissory notes held by the Social Security trust fund are involuntary loans to the federal government from the people of the United States who believed their money was actually being held in trust.

Perhaps Congressman Bacerra would’ve been better served had he pulled a credit card out of that wallet. Social Security is in trouble and Medicare more so. Here’s a link to a recent post from the sound off sister on what the trustee had to say about the program.

Last year, Medicare paid out $32.3 billion more than it collected in taxes. Based upon this report, if we leave things as they are, we will fail to meet our “promises” to seniors, whether they are currently on Medicare or not, in 2024.

On the Social Security front, the Social Security Disability Trust Fund will run out of money in 2018, and the Retirement Trust Fund will run out of money in 2038.  One plan to extend the disability fund is to “divert” funds from the retirement fund and move them to the disability fund.

If nothing is done, under federal law, when all of the government IOU’s are exhausted (remember, the government spent your money as soon as it was received, and gave the trusts IOU’s), the trusts are required to pay out no more each year than they collect in taxes.

10 replies
  1. Jeff S
    Jeff S says:

    These are the geniuses we keep putting in congress down?there.? Complete denial about any real problems that are here or coming down the road.??They are the ones saying that it’s just a little hole and that the Titanic is?not sinking.??

  2. TomL
    TomL says:

    So he wants to use his daughters savings bond as collateral. Isn’t that mortgaging the future of his child for his use today.

  3. Plainvillian
    Plainvillian says:

    Does Congresscritter? Bacerra not know that the Social Security “Trust Fund” has been raided repeatedly to fund operating expenses of the Federal Government?? Did he sleep through that session of Congresscritter orientation?? Ponzi, anyone?

  4. Lynn
    Lynn says:

    I have just decided that the Liberal and Conservative brains are wired differently. Conservatives can not figure out the Liberals thinking and vice versa.? I really don’t know how to bridge the divide. All I hope is that there are more people who vote for fiscal conservatives this time than Liberals so that we can clean up the deficit. Beyond that we must give in to a progressive USA.

  5. SoundOffSister
    SoundOffSister says:

    Is it too late to send Congressman Bacerra to an economics course taught by Walter Williams?? Yeah, I guess it is.?
    I’d suggest that his constituants vote him out due to abject incompetence, but, he’s from California.? Sadly, it appears that California is not satisfied with just bringing that state down, it wants to do the same with the country.

  6. essneff
    essneff says:

    this idiot actually just happened to have his daughter’s savings bond in his suit jacket…?

    sos, he was taught economics by that great professor, Dr Irwin Corry……

    you know what, we’re doomed!?

  7. Tim-in-Alabama
    Tim-in-Alabama says:

    For a Dem to be that arrogant, there must be some Tweeted photos of him in his Underoos? floating around out there somewhere.

  8. gillie28
    gillie28 says:

    I actually listened to him being interviewed by Brett Baier (applause, please).? Bacerra was extremely slick and practiced in avoiding direct answers.? I did think Brett should have challenged some of his assertions a little more.? When a politician states that “all the polls” say something, I’d like to know which ones he’s quoting, especially since he claims to be?speaking on behalf of “the American people.”? Now, what would Jesus do?? Throw the bum out of the Congressional Temple (this will be my ending statement for a while, thanks to Mr. Rangel).

  9. NH-Jim
    NH-Jim says:

    Bacerra’s daughter, “Mommy, wheres my savings bond?? I had it right here in my piggy bank!”
    Mrs. Bacerra, “Your father took it, dear.”
    Daughter, ” Sonna-b*#!h!? First, my Social Security, then my Medicare, then my healthcare, then my college fund and now my Savings Bond.? How could he do that?”
    Mother, “Because, dear, it’s not YOUR money.”

  10. TomL
    TomL says:

    Since obama said today that he’s not sure that SS checks will go out next month, I guess those promissary notes are no good. I? guess when they picked Aug 2nd as the date to raise the debt limit?it was so that obama could throw granny and grandpa over the cliff.?

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