Debt Our Government Wouldn't Believe

IBD ^ | 06/27/2009 | Judd Gregg

[fiscon1]

In a 1789 letter to James Madison, Thomas Jefferson wrote: "The earth belongs to each of these generations, during its course, fully, and in their own right. The 2d. generation receives it clear of the debts and encumbrances of the 1st. The 3d of the 2d. and so on. For if the 1st. could charge it with a debt, then the earth would belong to the dead and not the living generation. Then no generation can contract debts greater than may be paid during the course of its own existence."

[WHBates]

"The earth belongs to each of these generations, during its course, fully, and in their own right. The 2d. generation receives it clear of the debts and encumbrances of the 1st. The 3d of the 2d. and so on. For if the 1st. could charge it with a debt, then the earth would belong to the dead and not the living generation. Then no generation can contract debts greater than may be paid during the course of its own existence."

What a quaint idea.

[FreedomNotSafety]

This reinforces the idea that Social Security is not an inter-generational contract. If the next generation has the political will power and enough votes they can discontinue Social Security. Today's retirees and today's future retirees cannot encumber the unborn. This is equally true of any governmental “contract”.

[newheart]

And he said it more than once:

“... we shall all consider ourselves unauthorized to saddle posterity with our debts, and morally bound to pay them ourselves; and consequently within what may be deemed the period of a generation, or the life of the majority.”

Thomas Jefferson

[Tublecane]

“This reinforces the idea that Social Security is not an inter-generational contract.”

That’s not perfectly analogous. Jefferson is talking about past generations: dead people. Social security recipients are not dead.

[kabar]

By 2030, one in five in this country will be 65 or older. And they have children and grandchildren. I doubt if SS will be “discontinued” any time soon. What we need to do is to privatize it starting with personal accounts and keep a small defined benefit program to insure for disability and survivor benefits.

[FreedomNotSafety]

Social security recipients are not dead (well at least most of them are not) and neither are the taxpayers who fund their benefits. What is heard frequently is that “I paid into the system and now I am owed my benefits”. Today's recipients (the generations of your parents or grandparents) are paid by taxation on a different generation (you or your children's). The upcoming generation does not owe the preceding generation anything. I think Jefferson’s quotation fits perfectly.

[FreedomNotSafety]

That would be a step in the right direction. My point is that should enough voters agree they could end Social Security next election cycle. Social Security is not a contract or legal obligation in any usual or even legal sense of those words.

[Tublecane]

“What is heard frequently is that ‘I paid into the system and now I am owed my benefits’”

This claim is, of course, completely fallacious. Old people didn’t “pay into the system”. Unless by “the system” they mean the federal government. They paid taxes, that’s all.