6/21/2012 4:02 PM ET|
The great Social Security lie
If you think the retirement of baby boomers is the problem, perhaps you should know about the real root of the problem -- and how it needs to be addressed.
The headline machine was in overdrive earlier this year with the arrival of the latest Trustees' Report on SocialSecurity and Medicare. And while much of the media continues to herald the coming bankruptcy of Social Security, they do so at the risk of ignoring the real story -- a story that is neither difficult to explain nor hard to understand.
Technically speaking, an entity is deemed bankrupt when its obligations exceed its revenues. Therefore, if the projections are accurate, Social Security will, indeed, be deemed bankrupt in 25 years -- absent modifications to resolve the funding problems.
However, that does not mean that the money will be all gone come 2035. Nor do the headlines explain why we have the projected shortfall.
Subsequent to the projected expiration of the period where the trust can pay out 100% of the promised benefits, the fund will then be in a position to pay out 75% of promised benefits for the foreseeable future -- and that is not OK. Clearly, there need to be some changes made to Social Security so as to make up the 25% annual shortfall in benefits we anticipate will begin a quarter of a century from now.
The cause of the shortfall
But if we are to hope to make these adjustments in a sensible and realistic way, it might not be a terrible idea for the American public to actually understand the real causes of the shortfall in anticipated trust revenues.
We are consistently led to believe that it is the "aging workforce" that rests at the heart of Social Security' funding problems. Tune in to any of the media reports covering the numbers just out and this is what you are going to see and hear.
The claim, while legitimately representing a small piece of the problem, fails to explain the lion's share of the crisis we will experience in the Social Security Trust --and by lion's share, I mean a full 60% of the entitlement's funding shortages.
The "aging workforce" narrative serves to encourage and support the critics who claim that our problem is too many retirees lining up to collect their entitlements only to find that the government has failed to properly manage the Social Security Trust -- leaving the next generation of beneficiaries to be shortchanged 25 years down the line. As a result, the privatization pushers argue that Americans would be far better off looking out for their own retirement accounts so that government mismanagement will not come between hard-working citizens and their retirement money.
This is the Great American Social Security Lie.
It is a lie concocted by those seeking to fulfill Wall Street's eternal quest to get its sweaty palms on trillions of dollars of our retirement cash, allowing them to expand their casino operations beyond their wildest imaginations -- and Wall Street has a very healthy imagination.
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1+1=2 Just seeing how many thumbs down I get for stating a mathematical fact, since I got several thumbs down for pointing out the fact that the US has its highest income disparity since just before the Great Depression.
Can't let the facts get in the way of whatever particular ideology one is spouting. And not to let the libs off the hook either, it was Clinton who helped get the ball really rolling with losing jobs and wages to China, not that G.H. Bush would have done any better.
Ross Perot probably would have, though. He had the sense to oppose NAFTA, outsourcing, globalization, etc. The sooner people realize that the ENTIRE political system is rotten and needs to be replaced, the sooner people will stop being DIVIDED and CONQUERED.
why on earth in modern times should we be forced into social security in the first place? i am quite capapble of saving my own money, thank you. if you support social security because you don't want your retirement money to go to wall street, then invest in government bonds. i, however, would rather invest my money in wall street because it earns a higher rate of return than SS. either way, it should be each individual's choice - not the choice of a politician, a lobbyist or a group of voters.
A hidden little secret .. over 20,000 Cubans each year to migrate to the United States. Each one is eligible for $10,000 per year of SSI funds. And where do these funds come from - not Cuba.
I am not against individuals coming over and wanting to be U.S. citizens... just earn your share, work, speak english and abide by the laws. Don't come taking advantage of our very broken system, live off the government funds that hard working Americans provide, and send the money you receive back to the country you wanted to leave.
I live in part of the country and watch this daily. My sisters illegal boyfriend gets paid cash under the table when he works, files his taxes with a fake ss number and receives back a check from the IRS. All while I am working 10 + hours per day - paying taxes.
Yes - I am pissed that my retirement money will not even be there when I am able to retire.
The real problem is the hundreds of thousands of able body and mind people out there collecting SS because they found a way to beat the system and not work for a living. I can name at least 20 that I know. And a lot collect and work under the table for even more money to not pay taxes on.........
No one is "taking" money from you, you will never see...this is a younger generation deliberate lie they love to perpetuate ...This is the "Big Era of The Victim Generation". When they aren't whining about how "other people" cause their allergies, they are looking with needle noses in other peoples' backyard hungrily eying what they can get their syrupy mitts on.
In case the whiner generation of GenXers are too young and need a remind ...YOU live in a SOCIETY. That means poor lil lambies you get to pay your dues in your jobs. You don't get top title, top salary, Mondays and Fridays off and then text at your job all day long. You work those tiny hinnies off. You contribute your fair share to the society you live in or you can be cast out of it and end up on the outside looking in when your precious Wall Street Casino crashes for the 5th time in 70 years. Social Security, for the lame brains out there was created at a time when banks and speculators on Wall Street overshot their gambling risks and created the Great Depression. Now look at what young geniuses have done...$320 trillion in unfunded derivatives, $33 trillion in offshore tax free havens hoarded like the money grubbing fools these whiners are. Boo Hoo...you have to work for a living. You have to contribute to the common good...You are not the only common good. You are not even a luxury item and if anything that over engorgement of luxuries is WHAT is keeping this country broke...Need another fleet of yatchts? Jack consumer prices. Want another 10 more homes? No prob...run to taxpayers and beg 2 more bailouts 2 consecutive years in a row. The more the rich bois spend, the worse the economy gets. They take but they simply do not know how to replenish the trough from which they all feed.
Lack of jobs and people working and not contributing to Social Security as we know it. By the mid 1980's a lot of people's jobs in manufacturing went overseas, or their jobs were done by robots. This cut out many jobs people had. The United States has continued to lose jobs to overseas market, where people would work for barely nothing. For the last decade there has been a big skip in what we pay to Social Security, because if we are not working, then that benefit is not going to be there.
Another thing that we have to consider here is that minimum wage wasn't always $7.25. I have seen minimum wage change probably 6 times in my life. I can remember being paid $1.60 for part time work. I can remember being paid $2.90 an hour flipping burgers in college. I have to remind you people, we didn't pay Medicare tax yet. I know men and women whose Social Security is way less that $400.00 per month, yet they seen to make it.
I really think Social Security will be around for many generations and I think that you should not believe everything you hear or read. Sometimes people speculate on futures, but that is just what it is, speculation.
Why in the world did the Obama administration & congress reduce social security payroll deduction from 6.2% to 4.2%
That wasn't smart.
If the Goverment Crooks pay back all the money borrowed from SS. it would be in good shape. They think it's their own expense account. Like the Rail Road. never paid back. The airlines never paid back; china
Never paid back. But, They want their money back with interest. I Have not seen a politician that was not crooked. Give the country back to the PEOPLE!!!!!!!!!!!!
Always follow the money. How much of the push to "end" Social Security is coming from corporations and employers envisioning lining their pockets with the ~7.5% of everyone of their workers wages they pay to SS as matching funds.
They have their greedy eyes on the largest corporate tax 'break' ever concocted.
david ddddddddddddd are you stupid or what? the reason SSI is broken is the fact that the money was
growing in the fund and the demos used it to fund johnson's great society and spent every dime in the fund. up to that time the fund was completely solvent and was doing fine then the demos seeing all that money which was untouchable got with johnson and got him to agree to open the locked box and the demos had a field day spending till it was all gone then started blaming seniors retiring for the short fall. congress continues to this day (reps and demos) to spend every dime that comes in but NOOOO they are not to blame, it's the american citizens ie: seniors who paid into this all their lives that are to blame for expecting it to be there when they and you and others that retire only to find it's all gone.
but never fear congress's retirement is solid and they have nothing to fear, they will get theirs
msn do some home work before you write junk
I'm reading everyone's comments and it's apparent that most of you either didn't read the article or understand it. The author is saying that lower-than-expected wage growth of average americans is what's to blame. He blames the rich for greedily hanging on to an unfair portion of the nation's wealth.
I hope that clears things up.
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