Very simple explanation of how the rich ripped off working folks in 1983

[Ernesto]

..."In 1983, when we last reformed Social Security, we made an implicit deal between two groups of American taxpayers. Call them Groups A and B. For about 30 years, Group A would pay higher taxes than necessary, thus allowing Group B to reduce their tax rates. Then, for about 30 years after that, Group A would pay lower taxes than necessary and Group B would make up for this with higher tax rates."...

http://motherjones.com/kevin-drum/2010/08/deal

[sandnsea]

1. No.

For thirty years Group A, everybody, would pay social security insurance and invest it in the government. Group B would pay their own way. Thirty years later, Group A would collect thier benefits and Group B would pay the dividends.

Group B decided to live on the investment money instead of paying their own way, and now they don't have the money to pay the dividends.

[Hannah Bell]

3. Group A isn't "everybody". capital doesn't pay fica. group b has the money, they just don't want

to pay their debts.

[sandnsea]

5. Yes, Group B has the money

We're going to have to eliminate the Bush tax cuts and possibly raise even more taxes to get it.

And I meant "everybody" in the sense of workers who need the insurance benefit.

I hate the way people are trying to lump all the money into one pot when that is the worst thing that can be done if we want to get our FICA back.

[texastoast]

2. Much better reading in the comments to the article

I learned quite a bit about the trust.

[SOS]

4. Robert Reich is proposing a payroll tax holiday

That would help in a big way.
A 7.5% pay raise (or 15% if you are self-employed).
But since it would benefit average workers and not Goldmine Sachs, it will never happen.