From Damian Paletta at the Wall Street Journal
The Social Security Administration has begun warning the public it cannot guarantee full benefit payments if the debt ceiling isn’t increased.
When asked by the public, the agency is notifying beneficiaries that “Unlike a federal shutdown which has no impact on the payment of Social Security benefits, failure to raise the debt ceiling puts Social Security benefits at risk,” according to a person familiar with the agency directive.
The warning was assembled after the agency consulted with the Treasury Department, which would play a lead role in determining how the government handles payments if the borrowing limit isn’t raised soon.
“Our employees started receiving questions from the public, so the agency worked with Treasury to provide an answer they could use when asked about the debt ceiling by the public,” a Social Security Administration spokesman said.
In 1937 the Roosevelt administration had to defend the Social Security Act and did so by stating before the Supreme Court that the inanely named FICA was simply a tax with no contract of benefits accruing to the payers and thus legal under government’s taxing authority. Sounds ;ike Justice Roberts” reasoning in the Obamacare fiasco, doesn’t it? The 1937 case was .
Obama is trying to fulfill the Cloward-Piven Stategy which is actually a blueprint for despotic communism. The idea of a equal living income for everone has a major flaw, who pays?