Posted on 11/06/2015 8:07:55 AM PST by MadIsh32
If anyone deserves to pay more to shore up the federal safety net, either through higher taxes or lower benefits, it’s boomers — the generation that was born into some of the strongest job growth in the history of America, gobbled up the best parts, and left its children and grandchildren with some bones to pick through and a big bill to pay. Politicians shouldn’t be talking about holding that generation harmless. They should be asking how future workers can claw back some of the spoils that the “Me Generation†hoarded for itself.
(Excerpt) Read more at washingtonpost.com ...
The mid to late ‘90s was the perfect time to pay a major chunk of the debt. That opportunity was completely squandered and we have seen the disaster since the turn of the century.
The last 7 years have been a complete catastrophe for the economic solvency of this nation.
In the case of Social Security, that's actually true. And I say this as one of the "old people".
Social Security has been paying more old-age benefits than it can afford since the 70's. Note what I high-lighted: I'm referring to the OASI (old age and survivor insurance) benefits. These are separately accounted by Social Security, if you take the time to look.
Please stop right there before you reply: it isn't because of SSI, disability fraud, or "stealing the surplus". All of those are separately accounted. Anyone who tells you differently is either misinformed or deliberately lying to inflame you.
The truth is that Congress increased benefits greatly back in the 70's and added the COLA without properly funding it. The Reagan administration tried to correct it in the 80's, but their demographic and economic assumptions were too optimistic.
Since then, anyone that even suggests trying to fix the problem is demagogued out of office. So, the problem just gets worse every year.
How bad is it? At the moment, benefits would have to be reduced 16.4% across the board, or taxes raised 21%, to put Social Security back into balance for the next 75 years.
Lets take everything they got...(government solution)
Anyone that suggests that is an idiot. But, the reality is that any solution will have to be a shared sacrifice. Current and near-future Social Security beneficiaries must accept reduced benefits, and current and near-future taxpayers must pay additional taxes.
We lost the opportunity for an "easy fix" long ago. But, the kind of sniping I see on this thread is a perfect example of why there hasn't been a timely resolution. Rather than throwing blame at each other, it's time for all generations and work together to fix Social Security.
However, perpetuating it isn't the answer -- demographic trends will just make it more and more expensive until it's unsustainable. Other countries have transitioned to an asset-based systems while preserving the retirement security of current generations. But, everyone has to accept responsibility and participate -- and be willing to give up something.
There’s a lot of blame to go around. Boomers were told/sold on the idea that wealth would go on growing forever. Many believed it and bought into the notion. At the same time they were sold on the idea they should be willing to help the weak by signing up for more government programs. They were made to feel guilty about their success. It’s the slow creep of socialism - they just never believed it could happen here.
It is.
Excellent post sir. Thank you for your contribution of real data to this thread.
As one who is in the group that will have to pay for more people then ever before in American history, my hope was that W would have been able to partially privatize the program in ‘05 with reduced benefits in the future.
It would be terrible to say tomorrow that those who are eligible to receive SSI and Medicare at age 65 now have to wait until 67.
However a phase in of that process is a must. As is a partial privatization, as are young people willing to be paid out less in 35 years (which from my anecdotal evidence, most people my age do NOT expect to get anything from SSI/Medicare 30 years from now)
I have to wonder if this ‘Boomers did it’ isn’t just another version of ‘old white guys did it’.
I mean, it would enable those making the charge to avoid the appearance of racial bigotry.
I can’t think of another reason to use such a gross generalization to explain a very complex issue. Anyway I think its a matter of time before we start seeing the burgeoning minorities complain about supporting old white people with their payroll taxes, and this sounds suspiciously close.
“We lost the opportunity for an “easy fix” long ago. But, the kind of sniping I see on this thread is a perfect example of why there hasn’t been a timely resolution. Rather than throwing blame at each other, it’s time for all generations and work together to fix Social Security.”
I agree, however, if the SS Trust Fund would have actually existed, in other words, money really in the lockbox, rather than having been squandered in the General Funds, then it would have been accruing interest from having been properly invested. But instead it was squandered. Therefore, if it had been properly saved and invested, there would have been plenty to fund our retirement savings.
That money we paid into SS, just as if we invested into an interest bearing savings account at the bank, would legitimately have been ours, all of it, including the interest, just like in a bank account with interest. So if we got more than we paid in in actual dollars, that’s just fine, because would it have been invested properly, SS money would have been returned to us in interest also, which would have been a huge amount of dollars, not just in principal. It’s all ours, we retired people.
Yes, I did the same thing. And no, it didn't help. But, collectively, we are still responsible for the outcome. And collectively, we have to act to address the problem.
So take you 'boomers are responsible for all the leftist policies' and SHOVE IT!
This really doesn't help. I know you didn't want Social Security or Medicare. But, if you haven't already retired, you will probably be doing so soon -- and will be collecting benefits then.
The question is: are you willing to participate in the solution? In the case of Social Security, the only choices are raise taxes by 21%, or reduce benefits by 16%. And that has to be done THIS YEAR. Next year, the impact will be worse.
Yes, Social Security is a raw deal for a lot of people. Since I was at the top end of the wage scale, I'd have to live until about 130 to collect enough benefits to exceed the current value of my contributions.
But, the ONLY way I can even collect what I'm being promised is to raise taxes even further on my children. They are already struggling to set aside anything for emergencies, much less retirement -- because they have to pay Social Security taxes to fund MY check.
I'm willing to take a reduction in my benefits, so that my kids aren't subjected to a tax increase. I didn't ask for the benefit increase -- I couldn't even vote back in the 70's when it happened. But, I still consider myself responsible, as soon as I cash that check.
I have a question...how long have you worked in this Country and from what Country did you come from?
Bingo. You nailed it. That is the real purpose of this article. Baby Boomers have been paying into Soc Sec for 50+ years. Now the articles will appear to say they're greedy bastards if they actually think they will get money back from Soc Sec. The government, operating the largest ponzi scheme in history, has spent every dime and then some of Soc Sec savings. Now they need a scape goat to blame.
And the Boomers went back in time to 1935 before they were born and passed the SSA and began the welfare state. Then, although none of them could vote and none of them were in Congress, they passed LBJ's Great Society scam. Don't tell me they're not despicable. /s
How come nobody ever talks about clawing back excessive taxes from the Federal Government that collected them?
The author appears to be laboring under the misapprehension that generations make political decisions. They don’t. Political factions composed of individuals belonging to multiple generations do. And that is exactly what happened. Ascribing blame to a class defined by being born in a certain time frame is simply sloppy thinking.
You just found what to blame right there. Good Boy.
Please go back and read my posting. I already pointed out that anyone claiming that the "surplus was stolen" is either misinformed, or deliberately lying. Which are you?
The Trust Fund exists, it contains interest bearing bonds. If you don't believe me, read the 2015 Social Security Trustee's report.
It wasn't "squandered". It was invested in the safest investment at the time, as required by law.
That money we paid into SS, just as if we invested into an interest bearing savings account at the bank, would legitimately have been ours, all of it, including the interest, just like in a bank account with interest.
Yes, that's true. But, that's not what happened. Almost all of it was paid immediately to your parents and grandparents. THAT is where the money went.
Old-age benefits are in trouble because Social Security has been paying more than it can afford for almost 40 years. If Congress "squandered" anything, it's because they gave too much to your parents, grandparents, and in the future.. you.
It’s all ours, we retired people.
Once again, I hate to burst this bubble. But, you don't "own" anything in Social Security. You don't have a contractual right to Social Security benefits. All you have is the promise that future generations will be taxed, and the money given to you.
But, Congress can completely eliminate your Social Security benefit at any time, and the only recourse you have is to vote against them. Period.
Don't believe it? The Supreme Court has considered exactly this in Flemming v. Nestor (1960). Congress eliminated benefits for someone already collecting, and he sued. He lost. Congress reserved the power to themselves to change Social Security in any way, at any time.
I don't know about you, but I am a boomer. I stated working when I was about 15. It was to have enough money to go to college and work my way through. There were no loans, etc. A lot of us did that. Then when we were of age, we went to war. Start with the economy. Boomers went to work in a job market that their children rightly romanticize. That is really not true. Getting a job that paid a livable wage has always been hard. If I had the time and space I could tell you about employment rejection. It delivered living-wage work for wide swaths of Americans, even those who didn’t go to college, which by the way cost a fraction of what higher education costs today, even after you adjust for inflation. A single earner could provide for a family. Well, one has to take into account the taxes that were levied then as compared to the present, in total. That is a substantial reason why it takes two incomes to adequately provide for a family. Also, consider the punitive tax laws against business that now exist. That is why those jobs you mention no longer exist in the United States. They exist elsewhere. Employees could reasonably expect to advance in their companies and work their way into the middle class. Incomes grew across the board.†This is also a fallacy. It took hard work, talent and a desire to succeed to get what you just mentioned. There was nothing reasonable about it. So what did boomers do with those taxes and the money that was contributed to the economy? Who made laws sending manufacturing to other nations. Boomers with the applause of the boomers who voted for them. The boomers didn't do anything with those taxes. It was spent by Congress for all kinds of things, especially the welfare system. 22 trillion dollars since 1965. The money that was contributed to the economy made the economy boom so the employment you talk about could become reality. Congress made the laws, influenced by the environmental lobby and others. Remember, Congress was made up mostly of the 'greatest generation' until the early nineties.
I don't know about you, but I am a boomer. I stated working when I was about 15. It was to have enough money to go to college and work my way through. There were no loans, etc. A lot of us did that. Then when we were of age, we went to war. Start with the economy. Boomers went to work in a job market that their children rightly romanticize. That is really not true. Getting a job that paid a livable wage has always been hard. If I had the time and space I could tell you about employment rejection. It delivered living-wage work for wide swaths of Americans, even those who didn’t go to college, which by the way cost a fraction of what higher education costs today, even after you adjust for inflation. A single earner could provide for a family. Well, one has to take into account the taxes that were levied then as compared to the present, in total. That is a substantial reason why it takes two incomes to adequately provide for a family. Also, consider the punitive tax laws against business that now exist. That is why those jobs you mention no longer exist in the United States. They exist elsewhere. Employees could reasonably expect to advance in their companies and work their way into the middle class. Incomes grew across the board.†This is also a fallacy. It took hard work, talent and a desire to succeed to get what you just mentioned. There was nothing reasonable about it. So what did boomers do with those taxes and the money that was contributed to the economy? Who made laws sending manufacturing to other nations. Boomers with the applause of the boomers who voted for them. The boomers didn't do anything with those taxes. It was spent by Congress for all kinds of things, especially the welfare system. 22 trillion dollars since 1965. The money that was contributed to the economy made the economy boom so the employment you talk about could become reality. Congress made the laws, influenced by the environmental lobby and others. Remember, Congress was made up mostly of the 'greatest generation' until the early nineties.
I am a boomer and you are full of shiite muslims. We were not in control when Kennedy and LBJ started their glorious programs and the idiot years of Carter, which got us where we are today with a little help from the cellphone & starbucks crowd.
Boomers gave us Reagan.
It is not my fault the fed dropped the rate to 0% while a few elites makes loads on the QE’ed market.
Look elsewhere for your misery.
Sure. It’s just another tool for bashing Americans. This same poster was an enthusiastic South basher when the Confederate flag was in the news, and for some that was just another veiled opportunity to insult Americans.
This clown is the ingrate spawn of some third world immigrants from an Islamic country. More evidence of what the 1965 immigration law has done to our country.
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