Greenspan's 23 Years of Social Security Fraud
Social Security Income, Outgo, and Assets, Time series for income & outgo.
The assets of the Old-Age, Survivors, and Disability Insurance Trust Funds represent the the accumulation over time of the difference between income and outgo. The growth of the assets from the end of December 1986 through the end of December 2011 is shown below by calendar quarter.
Assets grew from about $47 billion at the end of December 1986 to about $2,678 billion ($2.7 trillion) by the end of December 2011.
Source: Social Security Administration
Table 2.1 Greenspan's Social Security Fraud Dateline
1981: Greenspan advises the president to cut income and corporate taxes and later agrees to chair the Social Security Commission, ostensibly to save Social Security.
1982: The Greenspan commission diverts public attention from the real crisis, which is the mushrooming budget deficit, by insisting that Social Security faces a massive long-term deficit.
1983: In January the Greenspan commission advises Americans to accept sharply higher payroll taxes in exchange for guaranteed benefits in the future, suggesting that the projected Social Security surplus should not be used to meet the government's operating expenses.
In April, the SS act is signed into law, but Greenspan remains silent even though SS surplus will be used to meet government expenses until 1992, thus contradicting Greenspan's recommendation made in the commission's report.
In October, just six months after the tax rise was passed, Greenspan suggests that SS benefits be trimmed to reduce the budget deficit, thus contradicting recent legislation and his commission's plea to guarantee benefits from 1985 on.
1985: Greenspan reiterates his plea to cut SS benefits to trim the federal deficit, even though the SS program is running a growing surplus.
1990: Greenspan denounces the Moynihan plan to trim the payroll tax, even though the SS surplus is being used in non-SS spending by the government.
1994: On July 15 Greenspan again recommends slashing SS benefits.
1997: Greenspan again recommends slashing the SS benefits by amending the costly-of-living formula and by raising the retirement age.
1999: Greenspan warns Congress against relying solely on the projected surplus in the unified budget to ensure the solvency of the Trust Fund, because projections could be wrong. He reaffirms his pleas to trim the benefits.
2001: Greenspan supports the Bush tax cut to reduce the projected budget surplus. This time, he is not worried that projections may be wrong.
2004: Greenspan suggests that benefits should be cut for future retirees, because the Bush tax cuts that he supported have created a large budget deficit, even though the SS Trust Fund itself is running an annual surplus of nearly $170 billion.
Greenspan's Fraud: (1) Helping to raise the payroll tax to meet government's operating expenses, but selling the plan as SS reforms. (2) Supporting tax cuts for the wealthy and asking workers to make the sacrifices, using projections not facts. Mark Twain once said: "There are lies, damned lies, and statistics." Greenspan made full use of such damned lies to benefit the wealthy.
Source: Ravi Batra, "Greenspan's Fraud," p 43.