Interest that flows into the system is vital because this revenue is free cash flow. In contrast, when the program collects a dollar of revenue from the payroll tax, the worker in some fashion is given a promise of benefits in the future.
In this case, “free” means interest income adds to the life expectancy of the program on a dollar for dollar plus interest basis. Of the current $2.8 trillion reserve, the payment of interest from the government and interest on interest accounts for more than 90 percent of the Trust Fund.
$31T in hock and legal Americans think there still is some separate fund for SSI?
LOL:-)
BTW just retired and got on it so no I don’t think it’s a joke.
Yes, but that just increases Fed.gov interest expensive paid on its debt.
Its robbing from Peter to pay Paul
If they changed the method, the market would adjust.
The problem with “solutions” is they assume that behavior won’t change in reaction.
I am not saying this won’t work. I am just saying that “simple” changes don’t result in massive gains very often.
Pyramid schemes are by their very nature unfixable.
Someone always takes it in the shorts when it collapses.
There are no exceptions to this rule.
I can tell you how to fix Social Security. First, realize that the program is exactly what its name implies - social security. Something to keep old and sick people from starving to death and sleeping in the streets and under bridges. The fact is, that the program is, in reality, the only thing most people have to rely on when they reach retirement age. Therefore, remove all limitations on earning for social security tax. If you make a million dollars, you still pay social security. Think of it as a tax, not an investment. Make it apply to gambling in the stock market. The only stocks subject to capital gains, are those held over 1 year at a minimum. That means the day trader gamblers
pay self-employment tax on their dillying and dallying.
Second, conservatives need to knock off their crap about the system. Social Security is an easy fix, and you don’t even have to go as far as I advocate.
The REAL problem with Medicare and particularly Medicaid, is FRAUD and Criminality. Those are not easily fixed. To fix them, doctors and hospital admins need to be prosecuted and jailed. Nearly 99% of them are in violation of long-standing anti-trust provisions. Not to mention, down right scams in their charging. BUT, to fix this will cause a major depression. A short-lived one, but a depression nonetheless because we need to reduce medical expenditures from 20% or so of our economy down to about 8%, like other civilized countries. We need national health coverage.
Here is a great link explaining the problem:
https://market-ticker.org/akcs-www?post=234584
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