"I'm old. Gimme, Gimme, Gimme..."
Posted on 01/17/2008 6:14:34 PM PST by newbie2008
Social Security faces an enormous future deficit: Between today and 2075, the inflation-adjusted shortfall is projected to reach a staggering $20 trillion. Although the problem with the current system is due in part to changes in demographics, the root of the problem lies in the fact that the Social Security system itself is poorly designed. Workers, particularly those under age 50, are slated to receive very low benefits in return for a record amount of payroll taxes they send to the federal government. 1 These workers could enjoy substantially greater levels of retirement income if they were allowed to place the bulk of their payroll taxes in professionally managed individual retirement accounts, 2 which historically have had significantly higher rates of return.
Defenders of the current system generally admit that personal accounts would make workers better off, but they also argue that the "transition cost" of privatizing would be significant. More specifically, because a major share of the payroll taxes now used to pay benefits would be invested instead in private accounts, policymakers would need to find several trillion dollars to finance benefits for current retirees and those nearing retirement (and, therefore, too old to take advantage of private accounts).
(Excerpt) Read more at heritage.org ...
It is bankrupt right now because every dime that was ever collected has already been spent.
This abomination of a system brings in so much power and money that not even the driver of the Straight Talk Express can speak with total honesty about how bad it is, or what really needs to be done to fix it.
Ping.
Boomers fault!
Glad I was born in ‘45.
All of us baby boomers can only hope that they can tap into another government Ponzi scheme to pay us!
Ping list for the discussion of the politics and social (and sometimes nostalgic) aspects that directly effects Generation Reagan / Generation-X (Those born from 1965-1981) including all the spending previous generations are doing that Gen-X and Y will end up paying for.
Freep mail me to be added or dropped. See my home page for details and previous articles.
Man: "What happened to the money I gave you last week?"
Uncle Sam: "I spent it."
Man: "Maybe I should put some of this money in the stock market."
Uncle Sam: "Nah, too risky."
newbie2008, grab a bottle of hootch and take a shot every time you see the word “Ponzi” or “boomer” on this thread. You’ll soon be drunk.
Those taking the benefit will get their money and pay takes on same. Those not taking the benefit will receive a percentage tax break each year for the rest of their lives until they die said benefit exceeds the actual SS benefits they would have received.
Then it's up to government to STOP SPENDING!
Add Medicare and it becomes $47 Trillion. Future looks bright
Boomers are in charge now and instead of attempting to fix it, they piled on with the Prescription Drug Pandering Act
You can take my SS check....from my cold dead hands.
Exactly. The politicians will never reform SS because they won’t have trillion$ to toss around like confetti any more. They never rescind a tax once it’s in place and generating lots of play toys.
If the shortfall is $20 trillion, then no reform is going to fix it. Might as well send the bill to the Democratic Party.
The general fund ... we are awash in IOUs, worhtless IOUs. But don’t we have a ‘great society’?
Exactly.
I’m joking kiddo.
LOL! Could use that philosophy on any thread here. Theme = drink, theme = drink … great idea. ;-)
Huh..are you series??
So folks, tell me....this has gotten better with the democrats in control of congress, right? I mean, it’s much better now than it would have been if anyone would have backed Bush when he was taking on the issue, right? Just wait until there is a democrat in the White House...then this problem will be completely resolved, right?
This is from 1998, and there is a lot better data on SS from 2005.
The trust fund is currently worth about 3 trillion...it is not going bust anytime soon.It is backed by government bonds that the US has never reneged on, and by law, can only invest in those US government bonds.
Social Security as we know it isn’t going to be touched by politicians for a decade, if then. Bush tried to just get a dialog going...you saw how well that worked.
The trust fund is worthless. The only thing social security has to back it up is the government's ability to confiscate money in the form of taxes.
I helped an elderly man load a couple of those big bags of dog food in his pick up at Wal-Mart the other day and he told me I was a nice young man. Made my day and I’ve been feeling frisky ever since.
You're right of course.
US bonds are the safest investment in the world. Of course they are based on US tax revenue. I don't see your point. The bonds are not worthless.
Well, Doc, here’s my solution. If you need more taxpayer money, just simply provide your bank account and routing numbers to me, and I’ll help the government collect the money and deposit it for you.
Its my thought that the powers that be will successfully eliminate SS. It all part of the cabal that wants to reduce America to a turd world country.
As long as you’re willing to support private accounts, you can have the rest with my compliments.
those under age 50, are slated to receive very low benefits in return for a record amount of payroll taxes
While baby-boomers enjoy the money, some stupid young folks will continue to vote Democrat.
Well, I don’t need “more” taxpayer money, just that which is owed to me from a lifetime of paying into the SS debacle.
US bonds are the safest investment in the world. Of course they are based on US tax revenue. I don't see your point. The bonds are not worthless.
What post #30 said...but let me also offer an analogy.
Suppose you have $1,000 and you put it in a "lock box".
Then suppose you take $100 out and put an IOU to yourself for $100.
Question: How much money do you have?
That's exactly what these bonds are. The government has slipped a piece of paper (bonds) into an accounting ledger and spent the "real money". They have promised to redeem their own debt with their own IOU.
Question #2: How do you think they will do that?
"I'm old. Gimme, Gimme, Gimme..."
So you’re telling me not to count on Social Security when I turn 65?
:-)
Which I was forced to do, by the way.
Look at the bright side...yer young with plenty of time to build your own private retirement account.
it’s up to government to STOP SPENDING!
Republicans don’t, Democrats won’t. It’s up to citizens to vote in lower tax rates to protect us from excessive spending.
Pretty accurate summation, but it means that no one is gonna do anything until about 2025 when the shortfall begins hurting.
If we can maintain our growth of 2 to 3% GDP annually, the US can afford to make up the shortfall for a long time.
I’m not suggesting there is no problem with SS, just that there is no point in worrying about it now.
I believe you would enjoy this website, I check his figures regularly and he is usually spot on.
But I want the American people to support me. :-)
And I am building a private retirement account with a lot better return than I would've received from Social Security.
Yes. Just ask John Edwards. The solution is to make the "rich" pay more for OTHER people's retirements.
Sorry, but that is just not a good analysis. The reason for the government borrowing from the trust fund is to give the trust fund interest income, not to just steal it. It was designed that way.
Without this mechanism, the trust fund would lose value every year. In a way you are right though. It really just amounts to bookkeeping
Check out the link at post 44.
If the damn hippies and feminists baby boomers hadn’t murdered 1/3 of my Generation ( born in 1973) and those in the 80’s and 90’s we wouldn’t be having these problems.
Elect Ron Paul. He at least is the only candidate that wants to allow people to opt-out of the marxist social security system.
LOL..wow.
Hard for me to argue with that type of reasoning.
Bye the way, why is it not a good analysis? I think it's a perfect analysis.
The government has no real money and generates nothing other than what it confiscates from it's citizens.
You remind me of my Father, our latest correspondence;
> Dad,
> > My Charter Service is not working, please advance my inheritance so you
> > don’t have to retire to a nursing home. Son
> >
> > P.S. It is now working after a complete shut down of everything, I will
> > still need the inheritance.
> >
DEAR SON.
CHARTER HAS BEEN SLOW AT TIMES BUT IS NOW RUNNING OK.
I AM ALSO WAITING FOR MY INHERITANCE.
I WILL BE KICKING AND SCREAMING ALL THE WAY TO THE HOME.
THEN I WILL TRY TO ESCAPE. HAVE A NICE DAY.
YOUR FRUGAL “DAD”
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