Posted on 09/09/2023 9:22:34 PM PDT by SeekAndFind
I recently had the opportunity to address a group of patriotic young Americans at the Young Republican National Convention in Dallas, Texas. I was able to visit with a number of these bright young people, either individually or in small groups, both before and after my talk.
One of the things that I learned is that many of them do not support our Social Security system, and there were several reasons given for this. For example, one said that he believes Social Security will go broke long before he reaches retirement age. Another gentleman said that he could do far better if he were allowed to keep that money and invest it on his own.
I was able to share my story with them about how Social Security played a crucial role in my own life. I have been fortunate to live the American dream, having now run a successful business for almost 50 years; however, I did not grow up in wealth. I grew up in poverty. My father became disabled early in my life and passed away while I was still in junior high school. My mother worked hard to support our family, and my brothers and I took on a variety of jobs to pitch in where we could. Even though we worked hard, I don’t know how we would have made it had it not been for the Social Security survivor benefits that we received. Because of those benefits, we were able to keep our heads above water.
If you, like some of those young people, doubt the value of Social Security, I ask that you please consider the following:
- Social Security provides a sensible way to protect those in need in our society, just as it protected my family when I was young. I use the term “sensible” because the vast majority of benefits paid out go to those who have actually paid into the system.
- In addition to the retirement provisions of which everyone is aware, Social Security contains other benefits to those who qualify. Among these are disability payments to those who can’t work, and death and survivor payments to families of those who pass away, leaving dependents behind.
- Social Security is not going broke, as it is a pay-as-you-go system. The problem, due to the large number of retiring baby boomers, is that payments going out are now exceeding amounts coming in, and the trust funds are being depleted to make up the difference. If this shortfall is not fixed before the trust funds run out, all recipients will take an estimated 20% to 30% cut at that time.
- Social Security recipients put a substantial amount of money back into our economy. In 2022, that figure was over $1.2 trillion, an amount that is likely to grow this year. Can you imagine what it would mean for our economy if this amount of money stopped flowing?
Because of the way Social Security is structured, it will be there for younger people when they retire down the line; however, because of the disability and survivor provisions, it can be considered a form of insurance for them now. I live in an area of Texas susceptible to the threat of hurricanes so everyone in the area pays a lot for home, flood, and business insurance each year to protect themselves against possible loss. Although none of us like to spend this money, we realize that there will be a benefit if something does happen. Social Security may be viewed in a similar way for those who have not yet reached retirement age.
Another advantage of Social Security for those who are not self-employed, is the match that is paid into the system by your employer. You receive the full benefit while only making half of the payment. I agree with those who would make the argument that there are things that could be done to make Social Security more efficient. It is my hope that efforts to shore up the program for the long-term, in order to prevent the need for future benefit cuts, will also look into ways to make it more effective.
That said, my experience with Social Security as a child, as well as the experiences of millions of other Americans of all ages, has led me to believe that this program is good for the country. I don’t want to imagine what an America without Social Security would look like, and it is my hope that you feel the same way.
I remember FReeper Willie Green’s “This month’s revenues = next month’s payout” graphics on Social Security.
“What Would America Look Like Without Social Security?”
The way human society looked for the 4900 years before Social Security - which was that kids took care of their elders, rather than GOVERNMENT.
Now, at least in France, kids seem to want to get their elders out of the way, so they can start to ‘enjoy life’.
What bothers me is the ones who worked under the table their whole life and now whine that their SS isn’t enough
I’ve known several of them
That was before the plethora of zoning and land development ordinances impeding such charity from beginning literally at home.
IOW, when there was still some semblance of respect for the Fourth Commandment and some belief in the importance of self sufficiency.
There is no trust fund. There is only deficit spending.
SS is the greatest financial scam in the history of the world. As it originated and been left alone it wouldn’t have turned out so poorly, but politicians can’t leave any pot of money unsullied. As things now stand, workers pay in 6.2% of their earning after they have paid income tax on the SS tax (only Washington can come up with schemes to tax a tax). The employer matches the 6.2% for each employee, EXCEPT the employee gets no credit whatsoever for that amount regardless of the fact that they are generating the funds the employer pays with. When one is eligible and begins to draw, guess what? If the recipient has income in excess of a certain amount they pay income tax again on a portion of SS amount. Is that a great deal or what?
SS is not going away...
It’s one thing to say it’s never to pay me when I retire and another when you depend on that monthly check coming in like the majority of recipients do....
I have heard allll my life that SS would go broke b4 I could collect. Ha! I made it! Been working and paying into it since I was 18, so now at 68, i don’t feel bad for taking it.
Though, admittedly, if SS wasn’t available, I would have made other arrangements. :) We do what we gotta do.
and they vote
Most likely it would result in more people per house, with people on this forum not only complaining about Millennials in the basement/garage but now Grandpa & Grandma have the spare room.
It would also add a huge deflationary element to the economy as demand & purchasing power dry up.
We could send more money to Ukraine.
And then the environmentalists will complain about the extra water consumption as grandma and grandpa take showers, do more laundry, wash extra dishes, keep the home warmer, add more sewage to the system, more garbage to the landfills, and on and on.
-PJ
The country is going to go belly up soon. it is a mathematical certainty.
There is no way to stop the current system in it's tracks ..
but that doesn't mean we shouldn't have some changes.
No body who hasn't paid in should get a thing.
Aliens ... layabouts etc ...
Young people should be able to opt out.... but no do overs.
Some people would do better .... a lot wouldn't.
The only real solution is a cultural change .. and that's going in the wrong direction .... gov is not your family.
But Big Brother is growing bigger.
The outlook is not good.
Ever notice that no one ever worries about running out of money for welfare?
Social Security was and is a gateway drug towards Socialism.
And then the environmentalists will complain about the extra water consumption as grandma and grandpa take showers, do more laundry, wash extra dishes, keep the home warmer, add more sewage to the system, more garbage to the landfills, and on and on.
-PJ
******************
It’s never ending with them.
Cause a problem, make the problem worse....rinse & repeat.
“I did not grow up in wealth. I grew up in poverty. My father became disabled early in my life and passed away while I was still in junior high school.”
This guy may think he was living in poverty because his father died when he was a child, but there is a good chance he had a lot more money (courtedy of SS) than his peers with parents that worked.
Socialist security is going away
The interests on the debt will destroy it.
The Xers and she omers will refuse to pay in if they aren’t going to get a return
Social Security isn’t going anywhere unfortunately. It may have to increase taxes and make minor changes. They will elevate the cap away. They may go after investment income. They may raise retirement age. Heaven help them if they means test. The balance is to try to keep it from looking like welfare where some just don’t qualify cause they is rich. That will kill the incentive to properly plan. SS is super progressive already with the top bend point using 15% multiplier. Baby boomers are reaching max retirement outflows. Double hit (not feeding the beast and now drawing). Medicare is the bigger monster in my opinion. The costs / liability is huge.
The first change needed is that people who do not qualify for it shouldn’t be able to get a spousal benefit. I a not talking about the survivor benefit. One house couple should not get 150% and the single house just 100% of the benefit paid for. If the spouse paid in and qualifies on their own then good but no 50% more for just being married and never working. People confuse survivor vs spousal benefits. The spousal benefit needs to go away. Start reducing it and in 10-15 years it needs to be taken away. The flip side is most who benefit from it will already be in the system and younger age group will have few that won’t qualify under their own history.
There really needs to be an ability to go outside of SS with a qualifying plan. Take the government version of the 401k called the TSP. Use that system and add a life insurance/ disability policy into it. Most won’t outperform the SS payout if they live past 80-85 but those that die in 40s or 50s will have an asset they can pass down.
So many ways to fix it but the politicians will use envy, class warfare, welfare mindset to make the system worse. I am 7 years away from early claiming or 12 from FRA. I’m one of those that will have my 35 years of hitting the cap so technically I will be able to get the max for how I file for whatever age I file at. I end up cheating my own family, friends and neighbors if I live long enough but it is very dependent on what rate of return is used to calculate the “gains” on that gore lockbox. Treasuries return and I an a stealing dog early. S&P returns and my my own family, friends and neighbors are cheating me. Had 2 grandmothers live to 95 and 97. So I figured I paid for them.
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