Posted by
San Diego
Member since Mar 2008
352 posts

re: Obama wants to count last years cuts?


False. Because each of the dollars have a future payout attached. To evaluate honestly you must examine the NPV of future payouts and analyze accordingly.
The net present value of future Social Security payouts depends on an important variable: the discount rate. What is an investment analogous to Social Security? Government bonds? If so, the 30-year T Bill is at 2.9%.

Also, this is a tricky calculation because not all of that $959 billion will be paid out at the same time. And benefits vary according to how long retirees live.

I'm busy at the moment, but maybe I'll fool around with this later to figure the NPV of that $959 billion, using i=2.9% for the discount rate. Unless you'd like to beat me to the punch?

This is an honest discussion. You have a point, and I agree in principle, but these are complicated issues. It's why I can't stand the Tea Party types who listen to Glenn Beck, think they know everything, and dismiss individuals who favor a nuanced approach as snobbish intellectuals. Glenn Beck is a former radio shock jock with no education. He's out to take people's money by putting them in such a panic that they buy gold. The people who stand on the corner of Veterans and Causeway with signs, screaming, "Cut the budget!" are killing conservatism.
This post was edited on 12/12 at 3:02 pm

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Member since Jul 2012
3543 posts

re: Obama wants to count last years cuts?

But Republicans say that’s double counting.

and for once this year the republicans are correct.

Our gov't is so fricking corrupt, if it wasn't so sad it would be funny.

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Alabama Fan
Member since Jan 2011
8568 posts

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Member since Nov 2006
30368 posts

re: Obama wants to count last years cuts?

You mean to tell me that Obama means to lie about the extent of the cuts he's agreeing to????

Child, please!

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Southern Miss Fan
Denham Springs
Member since Dec 2007
403 posts

re: Obama wants to count last years cuts?
How about 5% off of the top of every one of those?

Businesses figure out a way to do it every day in this economy. You telling me the govt. can't? (I know they won't, but it's doable). And if they can figure out a way to not pass a budget for 3 years, then they can figure out a way to cut "mandatory" spending.

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