Posted on 10/05/2021 4:23:15 AM PDT by where's_the_Outrage?
This will result in huge increase for seniors health insurance deduction every month from social security check. As a result SS will not be an increase.
+1
BUTT Inflation is up 25%.....
All I can say is, no way will they be increasing SS checks by 6%.
I don’t know how they’ll do it, but that ain’t happening.
Anyway, I thought all us older people were supposed to die of COVID. What happened?
“I believe they removed the cost of food and the cost of energy from the inflation formula. What a joke.”
In more Laissez faire times, food and energy prices were viewed as cyclical in nature, thus their removal from inflation made sense.
This ceases to be the case when you vilify the energy sector, pull drilling leases, shut down pipelines, boost your energy competitors, and basically make everything that is subject to trucking, (like food), priced to reflect those realities.
In short, you are correct as the pricing on these commodities is no longer economically-cyclical, their increase is by design.
Economic illiteracy is now at the helm, and it shows.
They should just remove the cap and increase the age to 70. Today 70s are the new 60s.
The “trust fund” is located in a filing cabinet here:
The good news is that each of can create our own Social Security trust fund.
Here is how you do it.
Write on a piece of paper: “I owe myself one million dollars.”
Take that piece of paper and put it in a filing cabinet.
Do this every day for the rest of your life.
Fun for the whole family!
Yeah, I meant 70. Actually, the difference between 62 and 70 is actuarially neutral @6% assumed interest rate, with the caveat that collecting prior to full retirement age causes a one-dollar detuction for every two dollars earned.
Every year you delay is equavalent to trading $1.00 today for $1.06 next year, discounted by average life expectancy. It’s a good ROI, assuming that you trust the payer. I do not. It is based on actuarial expectations. If you think you will live a long life, it is a good bet to wait, if you have some kind of medical condition and expect to die “before your time”, the sooner you take it the better.
Somebody retired I know is happy as a lark that SS is going up 6%. Never mind that inflation is up 6%, and that their CD’s are paying half of a percent.
I point this out to them, yet it doesn’t seem to register.
That’s not the way SS works. All of the money collected for SS (OASDI) thru the payroll taxes are put into non-market, interest bearing T-Bills and deposited into the SSTF. Benefits are paid by cashing in the T-bills thru the General Fund. SS annual benefit costs now exceed revenue meaning that the SSTF must make up the shortfall. SS revenue deficits will continue to 2034 when the SSTF is exhausted. By law, benefits will be paid only based on revenue, which will mean a cut of benefits, estimated to be a 20% cut.
The interest bearing T-Bills in the SSTF are no different fiscally as the T-bills held by China, Japan, the banks, etc. The full faith and credit of the USG are behind them. The SSTF, HI Trust Fund, Federal pension trust fund, etc. are included in the $32 trillion national debt under Intragovernmental Holdings as opposed to the publicly held debt. Bottom line is that the trust fund holdings are liabilities, not mere meaningless pieces of paper.
Every year the GF must redeem SSTF and Medicare Trust fund T-bills to cover shortfalls. By 2026, the Medicare Trust Fund will be exhausted. The sh*t will hit the fan months before that as Congress must reform Medicare before benefits are cut by law. They can reduce benefits or increase taxes or some combination of that.
Further comment—a good scammer creates lots of fancy sounding words to hide the scam.
It is still a scam.
Remember that retirees don't have the same kinds of living expenses that someone working does. They don't feel the same impact from inflation that a worker with a family experiences. No commute to work, wardrobe expenses, child costs, etc.
Just drive it into bankruptcy even sooner.
Today's workers pay for today's retirees. In 1950 there were 16 workers for every retiree. Now there are less than 3. By 2030 there will be two workers for every retiree. How much can we tax those two workers to pay for SS and Medicare benefits? The average Medicare recipient gets three times more in benefits than they contributed to the system.
Your posts make absolutely no sense.
The deficit and debt are huge and getting larger, the government no longer respects the Constitution and makes up whatever laws it wants.
Your model of reality sounds like a college textbook from the 1960s.
Wake up—the old rules do not apply any longer.
We are deep in scam-land. There are no rules and taxes are irrelevant when the government can go into infinite indebtedness.
The scam will last as long as it does—and then it won’t be there any more—and the old economics textbooks will be toilet paper.
SS and Medicare are unsustainable.
There are no rules and taxes are irrelevant when the government can go into infinite indebtedness.
The reality is that we can not go into "infinite indebtedness." There are real world consequences that are undeniable. We are destroying our currency. The dollar is the world's reserve currency, which is why the Federal Reserve can print unending supplies of money. But that won't continue if the dollar loses its status. Then we will be Argentina or the Wiemar Republic.
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