Preface

The current Social Security "crisis" was made in Washington. It has been 22 years in the making, and it is the handiwork of presidents and Congresses (both Republicans and Democrats), the Cato Institute, the Heritage Foundation, and many other individuals and organizations.

The actual solvency problem is not with the Social Security program. It is with the government's total budget. The 1983 payroll tax increase, enacted on the recommendation of the National Commission on Social Security, headed by Alan Greenspan, took care of the baby boomer problem. Taxes were raised high enough so the the baby-boom generation paid both the cost of the retirement of the generation that preceded them, as was customary, and also prepaid most of the cost of their own retirement , which was not customary...

The problem is that the government did not save and invest the Social Security surplus as it was supposed to to. Instead it "borrowed" and spent (embezzled) every dollar of the Social Security surplus, replacing the money with worthless non-marketable special issue government IOUs...  

Excerpt
"The playbook, upon which President Bush's strategy for privatizing Social Security is based, was written in 1983 by Stuart Butler (a Cato director) and Peter Germanis (a bolicy analyst at the Heritage foundation). It was published in the Cato Journal, vol. 3, no. 2 (Fall 1983) under the title, "Achieving a 'Leninist' Strategy."