Freezing Social Security Doesn't Thaw the Economy

If the government truly wants to stimulate spending then why is it freezing Social Security payments until 2013? Retirees are already receiving checks that are up to 50 percent below where true inflation levels should place them.

The Federal government economists forget that Social Security income - when spent into the economy - has a multiplier effect of up to five times the original retiree spending as the money is spent and re-spent while flowing through the broader economy.

This is fresh money that would not have to be borrowed by the retirees and then repaid with regressive interest charges.

Retirees pumping more money into Main Street would have far great impact than has the federal government simply trying to plug a multi trillion dollar finger in a far larger black hole that the financial industry is mostly responsible for creating in the first place.

Clearly the federal government and Congress is favoring destructive Wall Street - which has been encouraging the destruction of American business and jobs for decades under the guise of efficiency. Better if the government would start pumping up Main Street with direct transfers of cash.

The banks won't be loaning lots of money soon to kick start anything. Bankers know globalism - the strategy of outsourcing U. S. jobs and production while importing cheaper foreign labor - has broken the wage spiral that is essential to keep the usury interest spiral going.

Borrowers can't borrow $250,000 for a home today and then pay back $600,000 with interest in the future if their jobs and future raises don't mesh with globalist plans to drive the U. S. down to a world wide average.

More fresh money for retirees is a more logical first step to get more kick for the bucks.

An extra $1,000 spent by a SS recipient, will result in a multiplied $5,000 being spent as the money circulates and recirculates. And some of that will return to the U. S. as tax and Social Security revenue.

And that Social Security money need not be borrowed with the accompanying burden of interest.

The U. S. could simply issue the money on its own - as I understand Russia does when it wants to fund a project. And then any excess is soaked by taxation.


The U. S. has got to stop listening to investment bankers about what to do. Bankers have proven time and again they only care about themselves.

The government should focus on Main Street first, the people who build and maintain America. Not Wall Street, which has been dismantling it for short term gain. Investment bankers ....fix the U. S. economy without them.