Steve’s Barking; Why does Allen Greenspan hate Social Security

I don’t really know if the man  I use to think was an extremely smart economist turned into a fool when it comes to entitlements, especially Social Security.
 Now I’m going to try to state what he claimed, that entitlements hurt investment in the private sector by taking money out of the system. Now I’m sure that’s not exactly what he said, it was more like entitlements are a burden on the economy.
 Now thinking that Social Security and Medicare are burdens then Mr Greenspan is a fool.
 First of all Social Security provides in the majority of cases  discretionary income, without which a consumer economy like the United States will feel the pinch and it doesn’t matter how much investment is made in an industry. Those  who make the investments are just throwing money out the window. One must have the ability to purchase a  product no matter who good or desirable that product is.

 We do have problems with Social Security that could easily be solved by just ending the cap.
 The first problem is probably the last problem, that in the near future the Social Security trust fund will run out of cash and there will not be enough money to pay what was promised. We will probably be paying close to 70% (I know that the Social Security actuarial team says 79%, but I’m thinking  recession and robots taking jobs).
 The immediate problem that no one talks about were is the money coming from to pay the bill. We will have to borrow money on the open market or have the Federal Reserve buy up the the Social Security bonds (printing money).
 Currently Social Security is giving a hedge  against how much money has to be borrowed on the open market. That hedge will soon be eliminated altogether. Twenty years ago the hedge was greater and what we borrowed was quite less then now.
 Looking at the  myriads of problems that we have with money from Social Security the best way to handle the problem is quite simply as I stated before, no cap, no donut hole.
 Those who claim that it’s unfair that those paying more then their fair share because they are actually    
get almost as much benefit because the value of the assets that they own will be greater, believe or not.