VIDEO ON MSN MONEY
The West Virginia cabinet...
Does the Obama Administration intend to make the customary adjustments in the future?
The President (Obama, Bush, et al) does not decide the COLA, it is established by law passed by Congress. I agree the index used to determine an increase appears to be flawed as it seems to ignore cost increases in food, medicine and energy, but that's for Congress to fix (don't hold your breath).
“You know you’ll have more money at the end of your lifetime if you control it than the politicians,” former House Speaker Neutered Grinch
..sounds great on the surface, for the government has certainly f'd it up enough with raiding the fund in the past, but what's the alternative, trust Wall Street? Hmmmmmmmmmmmm.....remember the houseing bubble? Seems to me that maybe the best, and safest, solution is to get the government to finally run the SS fund the way it was designed and originally intended, and keep Gingrich's "Street" friends out of it.
Let's be clear on what this is really all about;. The 2.6 trillion in the social security trust fund has been borrowed by the US Government and has already been spent (the government replaced the funds with special bonds held by the social security admin. in West Virginia-you can look it up).. It's gone, spent, period. It's now part of the 14 trillion dollar plus national debt. it will have to be paid back through revenue to the Federal Government know as "taxes"...Bottom line is we all have to work to pay the US Government the money to replace the money they borrowed from Social Security which they have been taking out of my paycheck for over 30 years.....The real crux of the matter is that most people still want to believe that the US Government is good for those funds, but some of us know better- you don't pay back that much money -you default. And that is the cold, hard truth.
By the way, by 2015 the US Government is projected to have borrowed another $650 billion from S.S. raising the amount owed to 3.25 trillion....So don't tell me Social Security is doing just fine...You can't call debt you have to pay back ian asset.....Unless you're a politician ;-)
There you go- a system that is full of virtual air. The article explains very well how the system works (or doesn't).
Collect, spend and be happy.
Until it runs out. Check the magic year of 2018.
Then something will have to be done.
Are you sure you paid in and didn't take out for disability or something? Wow!
Who is spoon feeding you lies about the republicans shooting down cost of living adjustments for social security. Social security COLA is pegged to the consumer price index which measures inflation. No political party has anything to do with giving more or less. Due to the CPI showing no inflation and actually negative for a while you received no increases. Before the recession you had received very large increases because of the CPI, so really you are lucky that your payments don't go down along with the CPI and can only go up.
By the way, the people who complain that SS receipients get more than they paid in, are full of you know what. These bonds issued by the government to cover social security pay interest. If you continually put money in a savings account at a bank for 50 years do you expect to only get back what you put in. Hell no, you get what you paid in plus compound interest over your lifetime.
200 dollars a month payed into social security over 50 years amounts to only 120,000. However, with 4 percent interest compounded monthly you end up with 391,200. That's the way it works since the SS bonds from the government pay interest.
The idea that we can draw down the principal without killing the system is ridiculous, it can survive if it only pays out it's interest every year or less. That seems to be ignored, this is a controlled crash. Why are we are concerned about futile remedies when it is unsustainable indefinitely? The only real focus is on who will be forced to pay more or receive less, with the insane assumption that some generation within this century will get shafted altogether. That type of landfill thinking is quite vexing. I refuse to start with that assumption, regardless of the impact on me. If this was water, what would we do? Set the date to run out altogether?
Finally someone who will tell the truth about social security. It is a great program. It is not broke and will be around when the young retire and everyone will be glad it's there. It is not a Ponzi scheme since all are required to pay into it thus it can't have the "chain broken" unless it's privatized as some would do. (hint: Republicans). It only requires a minor tweek which would hurt no one and it will pay full benefits til the sun quits shining. It's time the public told the politicians to quit talking about it when it comes to deficit reduction.
Finally, without the 2.6 Trillion dollars in overpayments by social security participants the Federal Government would be 2.6 Trillilon more dollars in debt.
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