Posted on 05/13/2011 12:08:22 PM PDT by NormsRevenge
Caught in the sluggish recovery from the last recession, Social Security and Medicare face an increasingly dismal fiscal future, the federal government reported Friday in its annual review of the two mammoth entitlement programs.
Medicare, which now provides health insurance to some 47 million elderly and disabled Americans, could begin running a deficit in 2024, five years earlier than projected last year.
And Social Security, which last year began paying out more in benefits than it collected in taxes, now faces insolvency in 2036, compared to 2037 in last year’s projections.
Over the years, the Social Security and Medicare trustees have produced widely varying assessments of the financial health of the two programs, as the nation’s economy has moved through periods of growth and stagnation.
But the latest estimates by the trustees are expected to intensify pressure on both parties in Washington to move forcefully to shore up the two programs.
"We should not wait for the trust funds to be exhausted to make the reforms necessary to protect our current and future retirees," said Treasury Secretary Timothy Geithner, who chairs the board of trustees.
(Excerpt) Read more at latimes.com ...
Not so if the Government had invested the money I paid in for just $4% interest in a bank or savings loan, I would have had over $ 1,000,000 in my account at age 65. I was robbed.
Not so if the Government had invested the money I paid in for just $4% interest in a bank or savings loan, I would have had over $ 1,000,000 in my account at age 65. I was robbed.
“You are right. There aren’t enough young worker bees to pay for you when you or me when we are a grandpa and grandma to sit around and get a gubmint check.
Demographics don’t support the theory. The milions of taxpaying citizens who were supposed to pay FICA and FUTA taxes were aborted and killed in the womb. We need to import 3rd world illegals to replace them.”
In layman’s terms...it’s a ponzi scheme.
I just wanted to add, that I find abortion horrendous, too. But “Socialist Security” as another Freeper dubbed it, has been a Ponzi Scheme since inception. Take care.
“Kill it all... do not raise the spending limit... force these criminals to make across the board cuts... do it now... it is our last chance”
Agreed. There is no money left. The only way to fund anyone’s ease is to force someone else to pay for it. In this case, the younger generations. Kill the entire socialist nonsense now, and end Social Security, and every other socialist, unconstitution program. If the elderly don’t like it, count it as a lesson to be learned. Don’t vote in politicians who promise “other peoples’ money.” They mean your money, and they’re giving it to someone else, and wasting it in the process until it’s all gone. This nonsense should have been nipped in the bud. Those retiring now had about 50 years to set things right. They supported looters, and then think we should pay for it. They should have ALL said “NO!” 40 years ago, at least. Now they can reap the fruits of their labors, or rather the lack of diligence and/or trust they put into corrupt politicians, instead of taking care of business. This started with parent’s not caring enough about their children to ensure they had a proper education. That can be blamed upon the Greatest and Silent Generations, first, and then the Boomers.
There’s a place for charity, but first they have to acknowledge that they wasted their time and energy NOT repealing Social Security, and then admit they’re not entitled to anyone elses’s money now that theirs is gone. Get rid of Social Security, and do it NOW. There is no rule of law in the land if the U.S. Constitution is not followed, and there is no place for this, or anyone else’s pet socialist program.
P.S. NO we don’t owe anyone “their” money back especially with interest. If the older generations are angry, they can get it back from the politicians who wasted it (who they supported or allowed to waste it), not foist it upon their children and grandchildren. There’s no money, for anyone. It’s time to face that fact. The Chinese and everyone else will soon stop subsidizing the lazy and nonproductive among us. It’s time to fight the regulations and become productive again. It’s a multi-faceted problem. But it starts with no more handouts. And sorry for those who failed to plan for retirement, social security was meant to SUPPLEMENT your retirement program, not replace it. If you have no money saved away, I’m sorry, that was poor planning. Whenever you put your trust and security into the “Benevolence” of the Government and it’s programs, you get burned. Now teach that principle to your children and grandchildren, there’s still time.
“But beware - - even around here at FR there are a handful of mice who think “means testing” is the answer.”
As one of those “mice”, I’d like to squeak.
Means testing is an answer, but not in the sense you might think. By means testing what you will do is limit the number of people who draw SS. The problem with SS all along has been that it has strong political support. Even among conservatives there is belief in this ongoing myth that this is some sort of investment program. It isn’t. What you’ve paid into SS are just additional income taxes with a different label on them.
By means testing you continue erode support for what is really nothing but a welfare program. It only differs in that it’s not quite as means tested as say AFDC or food stamps.
Add further means testing to SS and you erode the support for it and maybe 15 years from now we can actually get rid of it. If default or debt repudiation doesn’t come sooner.
I don't think it's anything so nefarious. It's simple math. The government makes about 58% of its budget through revenues, the rest is borrowed. Unfortunately, just the entitlement programs (Social Security, Medicare/caid, welfare, unemployment, etc.) plus interest payments on the national debt consumes 60% of the Federal budget. Entitlement programs consume 100% of revenue.
So yeah, if the government can't borrow anymore, they take an instantaneous 42% budget cut, which is now impossible without HUGE cuts to everything the government does (not that that's a bad thing).
The entire reason for refusing to raise the debt limit is that there is no will at this time to reverse course... so something has to be done that forces them to cut spending. 60 years of incremental march to socialism will not be undone overnight. No one will ever take away any social security from anyone on it or about to start on it... but we can trim it way back for future generations... and we can eliminate other departments like the epa with Executive orders and we can cut other departments funding to the bone... but it will not happen overnight and it will never happen at all unless they refuse to raise the debt limit now. This will force a change and that change will be reflected in economic growth and the strengthening of our dollar... then the arguments that it will “never work” will die.
LLS
History Lesson on Your Social Security Card
Dick Kantenberger
Gifted Education Writer
Examiner.com
History Lesson on Your Social Security Card
Just in case some of you young whippersnappers (& some older ones) didn’t know this.
It’s easy to check out, if you don’t believe it. Be sure and show it to your family
and friends. They need a little history lesson on what’s what and it doesn’t matter
whether you are Democrat or Republican. Facts are Facts.
Social Security Cards up until the 1980s expressly stated the number and
card were not to be used for identification purposes. Since nearly everyone in the
United States now has a number, it became convenient to use it anyway and the
message, NOT FOR IDENTIFICATION, was removed.
An old Social Security card with the “NOT FOR IDENTIFICATION” message.
Our Social Security
Franklin Roosevelt, a Democrat, introduced the Social
Security (FICA) Program. He promised:
1.) That participation in the Program would be
Completely voluntary,
No longer Voluntary
2.) That the participants would only have to pay
1% of the first $1,400 of their annual
Incomes into the Program,
Now 7.65%
on the first $90,000
3.) That the money the participants elected to put
into the Program would be deductible from
their income for tax purposes each year,
No longer tax deductible
4.) That the money the participants put into the
independent ‘Trust Fund’ rather than into the
general operating fund, and therefore, would
only be used to fund the Social Security
Retirement Program, and no other
Government program, and,
Under Johnson the money was moved to
The General Fund and Spent
5.) That the annuity payments to the retirees would never be taxed
as income.
Under Clinton & Gore
Up to 85% of your Social Security can be Taxed
Since many of us have paid into FICA for years and are
now receiving a Social Security check every month —
and then finding that we are getting taxed on 85% of
the money we paid to the Federal government to ‘put
away’ — you may be interested in the following:
—————— -———— -———— -———— -———— -———— ——
Q: Which Political Party took Social Security from the
independent ‘Trust Fund’ and put it into the
general fund so that Congress could spend it?
A: It was Lyndon Johnson and the democratically
controlled House and Senate.
—————— -———— -———— -———— -———— -———— -———— —
Q: Which Political Party eliminated the income tax
deduction for Social Security (FICA) withholding?
A: The Democratic Party.
—————— -———— -———— -———— -———— -———— -———— -——
Q: Which Political Party started taxing Social
Security annuities?
A: The Democratic Party, with Al Gore casting the
‘tie-breaking’ deciding vote as President of the
Senate, while he was Vice President of the US
—————— -———— -———— -———— -———— -———— -———— -
Q: Which Political Party decided to start
giving annuity payments to immigrants?
AND MY FAVORITE:
A: That’s right!
Jimmy Carter and the Democratic Party.
Immigrants moved into this country, and at age 65,
began to receive Social Security payments! The
Democratic Party gave these payments to them,
even though they never paid a dime into it!
—————— — —————— -———— -—— —————— -———— -————
Then, after violating the original contract (FICA),
the Democrats turn around and tell you that the Republicans want
to take your Social Security away!
And the worst part about it is uninformed citizens believe it!
If enough people receive this, maybe a seed of
awareness will be planted and maybe changes will
evolve.
But it’s worth a try.
How many people can YOU send this to?
Actions speak louder than bumper stickers
http://www.sodahead.com/united-states/history-lesson-on-your-social-security-card/question-1605341/
May 13, 2011, 2:45 p.m. EDT
Medicare, Social Security finance outlook worsens
By Ruth Mantell, MarketWatch
WASHINGTON (MarketWatch) — The outlook for Medicare’s finances has worsened on a slow economic recovery and higher costs, while the outlook for Social Security has also declined, trustees for the programs said Friday.
Medicare’s Hospital Insurance Trust Fund is now expected to be exhausted in 2024 — five years sooner than projected last year. Upon exhaustion, dedicated revenue will be able to pay 90% of costs for the hospital-insurance program.
Meanwhile, government officials said trust fund reserves for Social Security will be exhausted in 2036, one year sooner than expected last year. Afterwards, tax income will only be able to pay for three-quarters of scheduled benefits though 2085.
For the first time since 1983, Social Security spending was greater than non-interest income in 2010. A $46 billion deficit is projected for 2011, compared with $49 billion in the prior year.
Also, trust fund exhaustion for disability insurance is expected in 2018. Costs for disability insurance have been greater than non-interest income since 2005.
“Projected long-run program costs for both Medicare and Social Security are not sustainable under currently scheduled financing, and will require legislative modifications if disruptive consequences for beneficiaries and taxpayers are to be avoided,” according to a summary of the reports for the programs.
http://www.marketwatch.com/Story/story/print?guid=9041B7A4-7D7C-11E0-915A-00212804637C
Actually, if Social Security isn’t cut, completely, then the U.S. will hyperinflate our way into collapse, since foreigners aren’t going to subsidize our ease either. The problem is the status quo has changed, and people who have become so adapted to a way of life will find themselves utterly unaccustomed to the new way things are. The fact is, that the rest of the world doesn’t want to forever live in poverty (loaning us money) so that U.S. Citizens can spend trillions of dollars a year sit around on Socialist programs. It’s not going to happen.
Other countries are already maneuvering to best position themselves in the inevitable dollar collapse. I believe it was Greenspan, referring to Social Security checks who said “We can absolutely guarantee payment, but we cannot guarantee purchasing power.” (To paraphrase). That means they know the money will be inflated away. I’m glad, because other countries don’t want to subsidize the U.S. Citizenry and the younger generations don’t want to subsidize the older generations who squandered the American wealth and left them with nothing.
In any event, life will NOT go on the way it has been and thankfully, one way or another Socialism will be driven from our shores, even if it comes from a catastrophic event to the American way of life. You can take that to the bank.
That is why they must not raise the debt limit... the reversal has to start now and that is the only way it can happen... just say NO!
LLS
Same here about the limbo zone. Been paying into SS since I was 15 1/2, what I could have done with that money, definitely lived on it simply after retirement.
And when my parents lived in San Francisco and saw the Russians lined up at the bank, fresh off the boat and with bigger SSI checks than my parents will ever see from SS, it’s enough to make your head explode.
Right on Quickgun, found this article on a post thought you would like it.
It’s broke because L B J and the democrats in the 1964 put the SS funds into the general fund and paid for his Great Society and War on Poverty programs, he was socially engineering our country into a welfare state while funding a military adventure overseas. When asked by a reporter if it was fiscally prudent to fund a war effort and his social programs at the same time he replied, “Heck yeah man, we’re rich”.
the Great Society: How it was financed.
To find the money for his “guns and butter” programs, Johnson consolidated the federal government’s operating budget and the Social Security budget.
As he himself put it, “Mah frens, we’ve got one pot of money oveh heah...and we’re spendin’ more than we’re takin’ in. Thass what we call it a daffacit.
“But oveh heah, we’ve got anothuh pot of money...and there’s more goin’ in than is goin’ out. Thass what we call a surplus.
“And if we just put the two of ‘em togethah, thar’d be as much comin’ in as was goin’ out. Thass what we call a balanced budget.”
Thus was the vault opened up to Congressional raids and Social Security doomed the fund money .
What was the message of the social programs that came out of LBJ’s Great Society? One of the most devestating to the family was that if an unwed woman became pregnant, moved out of the home of her parents, did not name or know who the father was, then Big Daddy in Washington would provide for all her essential needs. Ergo she no longer needed a husband or the support of her family. In fact, the more children she had out of wedlock, the more money she would receive from the government. This program was the death knell for many families, especially in the black community. Unfortunately many black men saw this as the best of all possible worlds. They could father as many children as they wanted, from multiple women, without ever having to accept the responsibility of fatherhood. Many women rejected marriage in favor of a boyfriend who could slip in the back door and not jeopardize her government check. In this dysfunctional culture why would education be important? Why seek an education only to have to compete for a good job in the market place when they could just hang around the neighborhood and have all of life’s amenities? In fact studying and getting good grades, for many blacks, became a social stigma. They were called “Uncle Toms” and accused of trying to act “white”. Many blacks who had the potential to succeed gave in to this pressure and opted for failure. After all they had the perfect excuse. Did not the NAACP and race hustlers like Jesse Jackson tell them that it was not their fault? That they were just innocent “victims” of white racism?
This is the legacy of LBJ’s Great Society..compassion as defined by Liberalism and the following years have seen more programs added to the welfare system.
Now we have millions of illegal immigrants’ on welfare, not to mention the housing bust of Barney Frank and Chris Dodd’s
The liberals have killed the goose that laid the golden eggs they beat her to death with the sledgehammer of welfare all for the constituents.
I agree completely. It is really as shame though because most people haven't a clue of what is about to 'hit' them.
Keeping Capital In A Depression
Hoarding
We’ve previously dismissed the foolish and anachronistic idea of saving with dollars in a bank – so what can you save with, other than metals? The answer is “useful things,” mainly household commodities. I’m not sure exactly how bad the Greater Depression will be or how long it will last, but it makes all the sense in the world to stockpile usable things, in lieu of monetary savings.
The things I’m talking about could be generally described as “consumer perishables.” Instead of putting $10,000 extra in the bank, go out and buy things like motor oil, ammunition, light bulbs, toilet paper, cigarettes, liquor, soap, sugar and dried beans. There are many advantages to this.
You remember that speech, too?
I remember it like it was yesterday. And I remember the cold chill that went up my spine, as well.
Great post, thanks.
Didn’t LBJ also start SSI, which is something else that bilked us? Or, he allowed all the fresh-off-the-boats who never paid a dime into our system to start mooching off us the second they arrived?
I agree, completely. Change is so much easier when prepared for, or at least anticipated. It’s time to say “NO!” to this rape both of finances and liberty.
As always, your posts are timely, blam. I’m going to read that thread now (just scanned it). Can you do me a favor and add me to a pinglist if you have one? (If not, just try to remember me sometimes, lol. Thanks!)
Sharing....
Thanx
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