Simple fact. People collect far more than they ever paid in.
Medicare is no different.
They are both Ponzi schemes and has always has been.
I’ve paid into SS and Medicare for about 35 years and the max into SS for at least 20 years. So I guess I’m “insulting” myself... Or maybe it means I’m honest...
Totally incorrect. If the money employees and employers paid in had earned even as little as 3%, the value of what was paid in for each recipient would greatly exceed what is paid out. That's why we hear about the Texas communities that were able to opt out and how their plans have grown to healthy amounts, far greater than SS.
SS has been grossly mismanaged, but that sure as hell is not the fault of those who paid into it for forty or more years.
And, again, SS built up a $2.6 trillion surplus and, IF the government repays that gradually as needed in the future (was $50 billion in 2010), then it's solvent until 2037 and that's plenty of time to reform the system.
Medicaid and Medicare are the real monster problems. Medicare has always been underfunded and Medicaid is nothing but one more giant claim on current general revenues and new debt. And Medicaid will grow bigger and bigger, along with other welfare programs and supplements for low wage earners, until the economy improves dramatically.
In the meantime Medicaid and welfare programs, which now total about $1 trillion per year, will continue to increase significantly.
SS is far from our worst financial problem and it's time politicians and others started a little more "straight shooting" on those subjects.
Another highly relevant link: (Medicaid and many welfare and low wage support programs)
Is $950 Billion per Year in Means-tested Aid Enough?
The total SS annual payout is now around $700 billion, about the same as Medicaid. And, of course, if Obamacare is ever fully implemented it will make everything far worse.
You are simply wrong on this. Take your annual report, add up your contributions, and your employer's contributions over the years (your compensation for your labor). Apply a 5% compounding interest to the accumulating fund (an easy risk-less return on investment over the past 30 years), and check out what that fund would have accumulated to. Then check with SS to see what the benefit you receive would be. I'll bet you that it will be less than 5% annually of the nest egg the SS has accumulated from you over the years.