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What are the potential economic implications of reducing social security benefits?
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That is a broad question. In theory, it would allow the gov't to spend more money on economy-building programs.. . The bigger question, though, is this: HOW would the US Gov't spend the excess money if THEY DID decrease social security benefits? There is no guarantee that the current administration wouldn't cut social security benefits and spend the excess money on this fruitless war in Iraq.
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