Posted on 06/11/2018 8:09:30 AM PDT by SeekAndFind
Social Security is like the classic children's tale, "The Boy Who Cried Wolf." So many warnings have been made, no one listens anymore. Well guess what? The wolf's now at the door. Are you listening now?
For the first time in 36 years, Social Security will take money out of its "trust fund" — an accounting fiction that would get you jailed for fraud in the private sector — to pay retirees. The truth is, Social Security is for all intents and purposes bankrupt.
Since 2010, Social Security has been spending more than it took in, making up the difference by tapping into the interest paid on a $2.9 trillion government bond fund. That "interest" is really your tax dollars. Congress, you see, spent the actual money that came in through your payroll taxes and left IOUs. Now, even the interest on those entitlement IOUs is no longer enough. So they're going to have to start selling off assets to pay what they owe. Last year, it was $41 billion. It will only grow.
By 2034, the entire pile of IOUs will disappear. Everything. It will require slashing benefits by at least 21%, or raising payroll taxes by 31%. That's for workers who are today 50 years of age. It is a devastating fiscal picture, one that has profound meaning for our society going forward.
As Cato Institute economist Michael D. Tanner estimated in 2015, Social Security faces a long-term funding shortfall of $25 trillion and Medicare of $48 trillion. Yes, that's trillion with a "t." No doubt, it's far bigger today. To do nothing is tantamount to an irresponsible declaration of national bankruptcy over entitlements.
(Excerpt) Read more at investors.com ...
Totally agree!
Makes one wonder why this is not already the case.
Who among us would not like to have a refrigerator-sized, virtually cost-free, safe and non-polluting power plant that will last for many years buried in the yard for our personal power needs?
Social Security represented a 10th Amendment / lawful governance crisis.
If Eisenhower had not rubberstamped FDR’s high handed lawlessness he could have taken a huge step to save the country from its ultimate ruin at the hands of damnable progressives.
I think there are spouses who might meet that criteria, and their ex-spouses paid into the fund just so the spouse would have something to live on.
The true reason for ObamaCare!
Can I interest you in a Death Panel?
“Again, no one talks about welfare money running out. Apparently that well just keeps refilling.”
You’re right!
Never occurred to me either until you mentioned it. I guess the media and educational systems are doing a fine job of conditioning most of us.
Fortunately you seem to be a clear thinker.
Make all federal and state employees ss recipients, at the same rates as current SS recipients and add their trust funds to the SS funds. No more government retirements. And make it retroactive.
Make SS tax on all earned income and on all income over 1 million per year.
Think of how much money that would be saved for federal retirements when the top level annually would be 36K? This could be poured into Medicare and SS and get us through the baby boomers
It also would not affect the youngsters coming up any more than it does now.
So what's the big deal?
Obamas 200+ welfare programs and the trillion$ transfer from Social Security to welfare Medicaid and permanent disability for the gibesmedats is alive and well...
And hundreds of thousands more criminal illegal aliens are still killing American drivers and pedestrians... stealing their identities and education funds, and making American more diverse...
Let's not be unchristian, inhumane/ uncharitable and continue to do "what's right..."
The kakistocracy is alive and well.
The Social Security system has by law a dedicated revenue stream of about 16% of most earned income.
As long as over 130 million people in the USA work, the Social Security system will be able to pay benefits, just not as much as are currently being paid or promised.
A reduction of benefits by about 25% is going to be necessary.
What I suggest for the old age system is:
1. raising the retirement age(s) by two years to 64 early, 69 standard
2. cutting the benefits of current recipients by 10%
3. cutting the retirement benefits of future recipients by 20%
The disability system is a really big mess that suffers from great abuse. I’ve been working on a proposal, but haven’t gotten very far.
I’m 59 and I am aware of the problems.
The bankruptcy of a government system is different than that of a company. People can and do refuse to provide revenue to a bankrupt company. Social Security taxpayers can not refuse to provide money to a national retirement system as long as they continue to work in the private sector in the country.
But I bristle when I see the 48 year old husband of a friend of mine drawing SS disability for injuring his back and can't hold a job.
Well, he does anything else anyone else can do physically and yet is still living 100% off of the SS disability for a back injury that doesn't seem to bother him at all. He's gamed the system.
This is closer to home, but my son died recently from a drug overdose at age 36. He left a one year old baby, who is our granddaughter, with his girlfriend and she has managed to get a SS check for the little girl that equals over half of my SS check. She'll draw the money until the child is 18 years old. I worked my whole adult life for my SS and my son hadn't had a steady job since high school. How does that work?
The Social Security system is going broke because there are too many people drawing SS checks that go beyond what the original system was intended to do.
Handing out taxpayer-funded checks like they were candy is our problem.
“There’s no doubt in my mind that the U.S. government will “fix” this problem by euthanizing the elderly.”
A prime reason for 0bamacare in the first place. And for failing to repeal it.
In my opinion.
1. Raise the retirement age and age for eligibility. Raising it from 67 to 79 would go a long way toward plugging the gap. This would be the least painful thing and it has been done before. In the 80s Ronald Reagan got Congress to raise the retirement age from 65 to 67.
When SS was implemented, the average age of death was 65.....the year people became eligible. Lifespans have increased considerably since then opening up a gap of many years between retirement and the average age of death. Also, people are in better health for longer nowadays due to improvements in medical care and bodies not being worn out from decades of tough manual labor.
2. Index to inflation rather than wages. Over time, wages grow faster thus increasing the required payout.
3. The least attractive option IMO is capping benefits or means testing benefits.
A massive tax hike is out of the question.
Step 1:
Immediately pass a law forbidding All Taxpayer Funded Retirement Accounts Nationwide and roll everyone into SS, All Retirement Funds to be turned over to SS.
This is probably enough to get them to fix the problem, when EVERY Congressman,Senator and Public Employee nationwide is in the SAME system, they will fix it.
It’s not a crisis if you were promised $800/month, are likely to get $600/month, but only need $400/month to live on.
You are the closest I see.
SS is a crime. It is fraud. It is a Ponzi scheme. The only “fix” is to stop the crime.
About 4b) below, though, you have to be honest. You don’ t get your “ share” of the crime.
I am nearing retirement, but would gladly forgo everything I have put in to see the end if this injustice. It is the root of much evil. Getting rid of it would do much to fix this country.
I don’t care much for people who think they are “owed” payments from this fraud. They are not.
The Chilean model is very well thought out and fiscally responsible. That is why we will never adopt it.
I want to abolish it.
So, I recommend: every politician who ever voted for the socialist insecurity program be imprisoned for fraud, and his assets seized under RICO to partially indemnify his victims.
My contributions to this pyramid scheme were not voluntary so, yeah, I want my money back.
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