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The Social Security dilemma

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Posted By: DVC, 6/8/2023 3:43:16 PM

The experts at the Tax Foundation fret that the current debate about extending the debt ceiling has lost track of the fact that Social Security is a major contributor to our growing deficit and debt crisis. They may be right about the fiscal ADHD on Capitol Hill, however, let’s make sure we are keeping track of the right discussion. It is true that both the growing deficit and long-term stability of Social Security are valid concerns that should draw the attention of Americans. These issues deserve the attention of all voters -- just not in the same sentence.


People who plan on "living on SS" are in for a very rude shock, apparently planned in 2032, according to CBO.

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Reply 1 - Posted by: DVC 6/8/2023 3:44:32 PM (No. 1487745)
Very interesting information. SS is planning to reduce SS benefits by 24% starting in 10 years. If my wife and/or I are still alive, we'll be financially fine, assuming that a dollar is still worth something. If not...we have some alternatives in place, too.
17 people like this.

Reply 2 - Posted by: davew 6/8/2023 4:09:40 PM (No. 1487756)
These arguments that described SSN payments as "debt" are incorrect. SSN is an entitlement program. That means that the law says every qualified person is entitled to the benefit regardless of what they may have paid in during their working years. The trust fund is a legacy of the politics that prevailed in 1935 when FICA was enacted. There is no fiscal reason that the Treasury can't pay all benefits because they don't get their money from taxpayers. They get their funds from the Federal Reserve. The govenment spends their dollars on government employees and on goods and services in the private economy. The dollars circulate there as the money supply. The government's deficit is the private economy's surplus. The Federal Reserve is like the bank in Monopoly. They can never go broke and neither can the federal government. Once people realize this fact they will stop the political shenanigans about debt ceilings and SSN trust funds running out.
20 people like this.

Reply 3 - Posted by: plomke 6/8/2023 4:25:50 PM (No. 1487765)
The greatest theft of wealth from one generation to next. The money paid out today came from the wages of that kid behind the counter at McDonalds. There is no trust fund. Just lies. The money you paid in was stolen by the people you voted for. Spent on endless,unwinnable wars, Go ask LBJ or McNamara,Nixon etc etc for your "contributions" back...
31 people like this.

Reply 4 - Posted by: Corndoggies 6/8/2023 4:45:35 PM (No. 1487792)
Bush II tried to introduce a program of people investing in their own retirement plan but, shocker, the ‘rats were totally against it. Then 9-11 happened and I never heard about it again.
29 people like this.

Reply 5 - Posted by: Catherine 6/8/2023 4:53:42 PM (No. 1487801)
I paid into it for thirty years, so yeah I'm entitled to it. If we send back the 7 million illegals who are now here, we'd likely have plenty of money. I can't imagine the dollar tag in the expenses to get these people here and let them disappear into the night. Someone somewhere is supporting them with our tax money. And please note when you see pictures of these people, 90% are fighting age men.
53 people like this.

Reply 6 - Posted by: nwcudagal 6/8/2023 5:00:33 PM (No. 1487806)
Surely the illegals getting benefits and never paid in have something to do with this. Also, I know a couple of individuals who became disabled in their early 20's and collected SSI until they reached retirement age. I don't know how the benefits works at that age but they were able to collect SS and work for the first time in 50 years. There's a lot of grift going on.
32 people like this.

Reply 7 - Posted by: sunshinehorses 6/8/2023 6:22:16 PM (No. 1487860)
SS is NOT entitlement as most of us paid heavily into it for all of our working years. IF that money had been properly invested - even in regular savings, it would have grown at least 5% a year for most of that time. That would have given a very nice amount to retire on. Yes I know SS taken from us was to pay for the previous generation, but more was taken than was needed - so much so that congress looked at it as their personal piggy bank. Yes kick off all those illegals and grifters that don't deserve disability and that would help a lot.
35 people like this.

Reply 8 - Posted by: whyyeseyec 6/8/2023 7:09:57 PM (No. 1487894)
@#3 - Melodramatic much? Seniors receiving SS are not living the Life of Riley off the back of poor McDonald's workers. Seniors worked 50+ years and paid into SS. What would you do, deny benefits? Maybe you're not doing well at the moment, so you want seniors to be equally as miserable as you?
16 people like this.

Reply 9 - Posted by: 49 Ford 6/8/2023 7:29:23 PM (No. 1487902)
I read somewhere a few years ago that most Social Security recipients (of whom I am one) get back all the money they ever contributed, plus interest, within 5-6 years of their retirements. I don't remember where I read that and cannot vouch for its veracity. But if it is anywhere close to true then our dilemma is worse than we think.
9 people like this.

Reply 10 - Posted by: Arrowhead 6/8/2023 7:47:46 PM (No. 1487914)
Thanks to Reagan and Greenspan's fraud. In 1983 Reagan rammed a payroll tax hike through Congress promised as a long-term fix for Social Security. The payroll tax hike was designed to generate large Social Security surpluses for 30 years, which would be set aside to cover the increased cost of paying benefits when the boomers retired. The payroll tax hike of 1983 generated a total of $2.7 trillion in surplus Social Security revenue. This surplus revenue was supposed to be saved and invested in marketable U.S. Treasury bonds that would be held in the trust fund until the baby boomers began to retire in about 2010. But not one dime of that money went to Social Security. Instead Reagan and Congress used that revenue to offset the huge deficits created by his tax cuts for his rich buddies. Remember, high income earners do not pay into Social Security on a large portion of their incomes
3 people like this.

Reply 11 - Posted by: red1066 6/8/2023 8:05:37 PM (No. 1487932)
Social Security is an entitlement program developed by a socialist government when the average death occurred around the age of late the 50's to early 60's. It was developed to free private employers of pension obligations. Now very few private companies have pensions, but every state and federal employee get A pension plus SS. Social Security is an obligation of the federal government that forces every employed person to contribute to. They've had decades to privatize portions of SS but have refused to do so even though by doing so, it would increase the amount retirees would receive and the ability to control their money. Hence, the reason government has never made changes to SS.
12 people like this.

Reply 12 - Posted by: 49 Ford 6/8/2023 8:19:31 PM (No. 1487944)
You're right # 11, but keep in mind that the people as a whole have opposed every attempt to update or reform Social Security. Democrat scare mongering and demagoguery have been very effective for decades. In the end we have only ourselves to blame for the upheavals coming our way.
13 people like this.

Reply 13 - Posted by: NeonVortex 6/8/2023 9:26:58 PM (No. 1487996)
The endless Ukrainian War funding could come in handy right at this moment.
16 people like this.

Reply 14 - Posted by: hershey 6/8/2023 9:57:30 PM (No. 1488018)
If the democraps had kept their hands out of the Social Security cookie jar there wouldn't be any problem, but no, they needed money to fund their vote buying via 'projects'...when they put the funds into the general treasury it was all over.
15 people like this.

Reply 15 - Posted by: DVC 6/9/2023 1:00:26 AM (No. 1488083)
Re #8. The fact is that there has NEVER been any real trust fund, only pieces of paper in a file somewhere. All of the SS taxes paid in to the government have ALWAYS been "loaned" to the Treasury, spent immediately, and these "loans" recorded with an official, fancy IOU...called a non-negotiable bond. This stack of IOUs is called collectively "the trust fund". And they call them "bonds", but in reality what are they actually are is a piece of paper that says "we promise that somebody else will pay this back with future "excess" tax revenues." But they already are spending 100% of all income and all other tax revenues PLUS 40% more which is borrowed. Where is this "excess tax revenue " from which to pay back rhose "loans"?? The "trust fund" is a pile of uncollectable IOUs and the money that people "paid in" was spent tbe year it was paid in. People refuse to believe these facts. SS is, precisely and actually, absolutely, literally a Ponzi scheme...a fraud. This was all obvious to me as a very young man, so I have planned my retirement from the beginning to survive the cancellation or means testing away of my SS benefits. It hasn't yet happened, but it is coming.
15 people like this.

Reply 16 - Posted by: NamVet70 6/9/2023 8:24:51 AM (No. 1488223)
Social Security is a Ponzi scheme and always has been. All of us receiving social security have paid for the benefits of others receiving benefits in the past. A Ponzi scheme grows as long as the future generations are more numerous and more affluent than the past. At some point, especially with a socialist Democrat regime regulating the economy to death, that Ponzi scheme collapses. If the people paying into this had been allowed instead to invest in stocks and bonds then they would have been able to obtain a much better return for their retirement. Do not count on Social Security for your retirement, but instead secure your future by building your IRA because the Social Security checks will not be nearly enough.
9 people like this.

Reply 17 - Posted by: Dodge Boy 6/9/2023 11:27:56 AM (No. 1488384)
Plan accordingly. The SS benefits will indeed be curtailed. #4, you are correct that W floated an individual payer system and the deep state shut him down. Many state governments and corporations have already transitioned to such a system. #1 questions the future of the dollar. The Federal Reserve and congress will be rolling out a central bank digital currency that will replace the US Dollar. As a first step, the FedNow payment system will be rolled out next month. Google search it and see for yourself. We citizens will be required to exchange US Dollar for tbe CBDC. Yes, have plan ready to go for when the SS benefits are cut. Our young people are in for a terrible shock when they are made to realize they must plan for their own retirements assuming retirement is even possible for them. My initial advice, monitor the Federal Reserve meetings going forward.
2 people like this.

Reply 18 - Posted by: Zigrid 6/9/2023 12:06:59 PM (No. 1488418)
Remember Al Gore's "lock box" rhetoric?... he was going to save the lockbox's funds...well... instead he raided the lockbox and emptied it....typical politician...and I'm sure the rhinos helped him...
1 person likes this.

Reply 19 - Posted by: law428 6/9/2023 1:41:13 PM (No. 1488466)
We can send Trillions to the Nazis in Ukraine, but American seniors...well, they can just tough it out!
2 people like this.

Reply 20 - Posted by: LadyHen 6/9/2023 2:31:08 PM (No. 1488504)
Our state (via the GOP gov and congress) got rid of the "traditional" state pension plan for all employees of a certain age and younger many many years ago and shifted those employees to a more 401k type retirement program. Now our state employee retirement program is completely funded and solvent. My aunt who worked for the state for 20 years retired last year and now makes more from her retirement than she did working and is tickled. THIS same thing will never happen on the federal level because of Democrats and establishment RINOs who view SS as their personal slush fund/club to beat over the head of their political opponents come the next election season. And voters are just stupid enough to always let them get away with it. As a Gen Xers we have no doubt the whole system will have imploded by the time we supposedly get to collect any of what we have paid in all these years. We would have been better off buying lotto tickets! The biggest Ponzi scheme in history!!
1 person likes this.

Reply 21 - Posted by: rochow 6/9/2023 3:58:31 PM (No. 1488538)
Why don't we take the gazillions that we are pouring into the Ukraine war and all the money that we give to illegals, another gazillion, and invest it in this country for our people? I am certain it would solve the problem immediately if there really is a problem.
3 people like this.

Reply 22 - Posted by: Lawsy0 6/9/2023 9:06:12 PM (No. 1488703)
Pray tell me how SSN it an entitlement if it was confiscated from every paycheck I ever earned starting in 1960 and ending ins 2017? If your pun is I am ''entitled to some'' of it back, then t'ain't funny, McGee!
1 person likes this.

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