Posted on 07/14/2023 6:08:53 AM PDT by ChicagoConservative27
(NEXSTAR) – The next cost-of-living increase for Social Security recipients is projected to be slightly better than previously estimated, but still the lowest in years, the Senior Citizen’s League predicts.
The Senior Citizen’s League (TSCL), a nonpartisan senior advocacy group, had estimated in mid-June that 2024’s COLA increase could be somewhere around 2.7% — a huge drop-off from 2023’s 8.7% increase.
The group’s revised estimate, issued Thursday following the publication of the Labor Bureau’s Consumer Price Index for Urban Wage Earners (CPI-W), now puts that number at 3%, they say.
Three percent, however, would still amount to the lowest COLA increase since 2020.
(Excerpt) Read more at thehill.com ...
Social security would not be broke if they didn’t use the funds for disability and every other use.
SS is not broke.
Ukraine is more important than old people. Ooh Rah!
LBJ started the raiding of the Social Security Trust Fund, Nancy borrowed from it and all politicians added to those who could collect various payments while not adding the S.S. tax to those new groups.
Certainly it will make up for the increase in living espenses right? Hello? Anyone? Bueller? 🤣😮🐂💩
Agreed. $32,000,000,000,000.00 in official debt and rising fast, with $27 trillion of it added in just 23 years. A graph of this should alarm every politician, but won't.
While all forms of insurance for Floridians has tripled in the last three years. I just paid the 6 month premium for auto insurance for me and my lovely wife and it is insane.
How can Social Security be broke when we never run out of money for welfare and illegal aliens? Can’t they use that pot of money instead? /s /s /s
now look for medicare to raise their rates.
It behooves the government to deliberately and significantly understate inflation. One because it lowers colas and what the government has to pay out for that. But another very significant reason is that it’s necessary to make the GDP look larger then it really is. Inflation is deducted from the GDP in a manner of speaking.
So if inflation were truly stated we would have a negative GDP for the last 3 years. In other words permanent recession. Rather than sound economic policies it’s easier just simply lie about what’s going on.
Some contributors must be the last. Then, they can’t get what they pay in. I would be retired now in my late 40’s if I hadn’t had to contribute to the ponzi scheme, instead, I have to work another 10 years just to make up for the theft.
As soon as this mess is over and Trump is back with the new financial system SS is supposed to be increased to anywhere from $2,500 to $5,000 per month.
But what about people that paid a lot more into the system? I think a percentage is the only fair way to do it. An absolute amount smells of Communism to me.
The SS Trust Fund will be exhausted in 2034. By law, benefits will then be reduced to revenue received, an estimated 20% reduction.
The Medicare Trust Fund is exhausted in 2028.
There has been no raid of SS funds. When SS revenue is received, it is put into non-market, interest bearing T-bills, which are deposited into the SSTF.
The way SS works is that today’s workers pay for today’s retirees. Baby boomers are retiring at 10,000 a day and will continue to do so until 2030. Retirees are living longer and there are fewer workers to support the system. In 1950 there were 16 workers for every retiree; today, there are less than three; and by 2030 there will just two workers for every retiree.
In order to make SS solvent, you need to either raise taxes or reduce benefits or do some combination of those. From an actuarial basis, SS is unsustainable as currently structured.
LBJ put S.S. into the unified budget, which Congress has borrowed $2.9 trillion from Social Security. So it’s just a matter of semantics. Or kind of like in the movie Dumb and Dumber were the guys got a briefcase full of handwritten IOUs! So yep the Congressional IOUs are still there, go luck getting Congress to repay.
About twenty years ago AARP magazine had an article on how the Social Security system can never go broke AND it is Not a Ponzi Scheme because it brings in new investors, so can never collapse as Ponzi schemes do.
A few pages more and there was an article by Jane Briant Quinn on how the SS system is set up. Without saying the words, it was set up just like a Ponzi Scheme that forces new investors to join and pay in.
I disagree. If person A has earned an SS benefit of $2000 and there is 3% inflation, $60 inflation adjustment keeps person A whole.
BUT, if person B has only earned a $1000 benefit, $30 keeps person B whole.
Equal colas for everyone unfairly redistributes money from those who earned to those who did not.
Irrelevant, SS funding has always be held and accounted for separately, no matter how reported.
"The United States government adopted a unified budget in the Johnson administration in 1968, beginning with the 1969 budget. The surplus in the Social Security OASDI (Old Age Survivors and Disabilities Insurance) budget offsets the total deficit, making it appear smaller than it otherwise would.
The Budget Enforcement Act of 1990, however changed this so that the two Social Security Trust Funds, and the operations of the Postal Service, are considered to be 'off-budget' and are excluded from the unified budget. This means that the Social Security Tax is not counted as revenue to the General Fund, and interest paid to the Trust Funds is counted as an expense to an external entity. Often Federal budget reports will contain two sets of numbers for the yearly Federal Budget: an 'off-budget' deficit (or surplus) and an 'on-budget' deficit (or surplus) the former of course including the receipts and outlays of these budgets, but by law for purposes of balancing the budget they are 'off-budget'."
Congress has borrowed $2.9 trillion from Social Security. So it’s just a matter of semantics. Or kind of like in the movie Dumb and Dumber were the guys got a briefcase full of handwritten IOUs! So yep the Congressional IOUs are still there, go luck getting Congress to repay.
Payroll taxes are put immediately into USG T-bills. The T-bills are backed by the full faith and credit of the U.S. government, just like we do for T-bills issued to China, Japan, etc. By 2034 all of those T-bills will have been redeemed exhausting the SSTF. SS has been running in the red for more than a decade, i.e., benefits exceed revenue collected. To make up the shortfall, T-bills are cashed in by the SSTF. It is done every year.
I will note that the SSTF, Medicare Trust Fund, Federal Employees Trust Fund, etc. are included in our $32 trillion national debt.
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