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Fixing Social Security
The American Thinker ^ | November 08, 2010 | Randall Hoven

Posted on 11/08/2010 1:29:49 AM PST by Scanian

Being desirous of pleasing Barack Obama and John Kerry, I will endeavor to stick to facts, science, truth, and argument. The challenge I present in this article could kill three birds with one stone. I propose a single experiment to test two political hypotheses and to solve the Social Security insolvency problem -- all in one fell swoop. (I try to be productive even on my days off.)

Hypothesis 1: Democrats do not expand government in order to solve problems; they use problems as an excuse to expand government.

Hypothesis 2: Republicans only talk about reducing government; when in office, they expand it.

Now, some of you might think both hypotheses have already been proven true multiple times over. But according to the scientific method, you cannot prove a theory true; you can only falsify it. The more tests a hypothesis passes, the more it becomes a "theory." And if a theory keeps passing tests, it gets promoted to a "law." So we should keep testing.

Here, then, is an experiment to test both of these hypotheses at once:

Propose a bill to adjust initial Social Security benefits by consumer prices.

(You might think that's already the way it works. But bear with me.)

According to my hypotheses, if such a bill were introduced, the Democrats would fight it, and the Republicans would fail to support it. But if my hypotheses are wrong and the bill passes, it would have the side benefit of fixing the entire Social Security insolvency problem.

Regarding my proposed bill, we all hear that Social Security is in trouble. That is true, and the Congressional Budget Office confirms it:

(Excerpt) Read more at americanthinker.com ...


TOPICS: Culture/Society; Government; News/Current Events; Politics/Elections
KEYWORDS: initialbenefits; lockbox; taxes; trustfund

1 posted on 11/08/2010 1:29:53 AM PST by Scanian
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To: Scanian

FDR signs Social Security Act


2 posted on 11/08/2010 1:36:45 AM PST by JoeProBono (A closed mouth gathers no feet - Visualize)
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To: Scanian

This is a fix that I’ve known about for years.


3 posted on 11/08/2010 1:40:22 AM PST by ari-freedom (Ding dong the Pelosi is gone!)
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To: JoeProBono
If I'm not mistaken, someone in the Reagan administration was talking about this a good bit until the Congress put the kybosh on them speaking out because it wasn't playing well to the pollsters.

It works, you can prove it works, it should be high on the list. As soon as Obamacare, taxes, the end of the educational dictatorship run from DC, and an end to all funding of the arts, this should bubble to the top. Until we have education fixed and working properly for a good while, though, I don't think a majority will even understand this.

Regards

4 posted on 11/08/2010 1:48:27 AM PST by Rashputin (Barry is totally insane and being kept medicated and on golf courses to hide the fact)
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To: JoeProBono

saving


5 posted on 11/08/2010 2:24:35 AM PST by freeangel ( (free speech is only good until someone else doesn't like what you say))
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To: Scanian
Very poor explanation.

Indexed to “Earnings?”

The individual’s “Earnings?”

Are “Earnings” the same thing as an individual’s “Contributions?”

Another glaring unresolved question...

Does anyone believe that millions of immigrant Hispanics and Africans are going to remit 100% of their yearly Social Security contributions directly to aged white Americans?

And what future immigrant groups are going to remit 100% of their contributions to aged Hispanics and Africans?

And how long before America's population hits 1 billion people in this immigration Ponzi scheme?

6 posted on 11/08/2010 2:27:02 AM PST by zeestephen
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To: Scanian

Common sense would fix most of America’s problems so the odds of getting anything “fixed” is not going to happen.

With some conservatives and the rest of the republicans in power in the House, my hope is they won’t let things get worse.


7 posted on 11/08/2010 2:27:50 AM PST by maddog55 (OBAMA, You can't fix stupid...)
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To: Scanian

And there you have it.


8 posted on 11/08/2010 2:29:04 AM PST by screaminsunshine (Cowabunga)
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To: maddog55

That is the most we can expect given fanatical Democratic opposition to even cleaning up the mess they made on their own watch.


9 posted on 11/08/2010 2:32:55 AM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: Scanian

Their is an idea out their to take your side of the contributions and esentially lend it to Credit Unions for Mortgages. Credit Unions were not under the CRA and many still hold their own “paper”. This would increase the yield and take 1/2 the money out of an inter-generational Ponzi scheme and provided capital for for home ownership at the local level. Works for me...


10 posted on 11/08/2010 3:10:47 AM PST by taildragger ((Palin / Mulally 2012 ))
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To: Scanian

Maybe a little known fact. Congress has the authority, under the Social Security Act, to stop paying ANY benefits. Of course, this is political suicide. Of course, no Congress will ever stop payouts. Of course, we can trust the federal government.

Right! As soon as DeathCare, starts killing off the elderly, Social Security will be phased OUT, as will MediCare and MedicAid. Then, Soylent Green.


11 posted on 11/08/2010 3:21:32 AM PST by NTHockey (Rules of engagement #1: Take no prisoners)
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To: NTHockey
Then, Soylent Green.

My guess by Executive Order and a memo from the Heath Care Czar The Soylent Crackers will be Arugula flavored...

12 posted on 11/08/2010 3:29:45 AM PST by taildragger ((Palin / Mulally 2012 ))
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To: NTHockey

Of course... the Democrats want to solve entitlement costs through the back door.

Seniors know all too well what it means.


13 posted on 11/08/2010 3:35:04 AM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: Scanian
One big problem started when Social Security became a trust fund for the "disabled"!

I'm not saying that there are no cases where the payments are deserved. I'm not totally heartless. But, there is way too much opportunity for abuse in this segment of Social Security.

14 posted on 11/08/2010 3:58:12 AM PST by REPANDPROUDOFIT (General, sir, it is perfectly ok to call me "ma'am"!)
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To: REPANDPROUDOFIT

Social Security Supplemental is a different program. Its paid out of general taxes.

Social Security is paid out of work contributions = FICA. Its a compulsory retirement savings program.

They are two very different elements of Social Security.


15 posted on 11/08/2010 4:06:16 AM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: REPANDPROUDOFIT

We need a fund like Alaska has, not taxable, all with a valid S.S. number would get it. Chks. expire in 90 days. If you don’t think you need it, don’t cash the chk. Buffet, Gates, and other libs would be invited to put their money where their pie hole is and chip into the fund.


16 posted on 11/08/2010 4:19:15 AM PST by Waco (From Seward to Sarah)
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To: Waco
Here's my little idea.....Allow the people who want to NOT take their SS checks and give them a MEDAL to show that they made this sacrifice!

There are plenty of people who didn't serve in the military that still want to give something to their country, and a MEDAL is a good sign of that.

Once a person has gotten back what they put in, with interest, they could have their payments stopped and also get a MEDAL, a different one....just like there are different medals given for service in the military.

17 posted on 11/08/2010 5:16:14 AM PST by Ann Archy (Abortion......the Human Sacrifice to the god of Convenience.)
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To: ari-freedom
The author seems to think that the SS Trust Fund contains real assets. It does not, but rather it represents an unfunded liability, which is why it is included in the national debt under Intragovernmental Holdings.

SS is a pay as you go system. It will go permanently in the red in 2016. It is in the red now, which means that some of its IOUs are being cashed in thru the general fund to pay for benefits.

18 posted on 11/08/2010 5:18:37 AM PST by kabar
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To: Rashputin

Reagan made a Faustian bargain with Tip O’Neill in 1983 to get SS back into the black. They increased the taxes and reduced benefits, including raising the retirement age for full benefits from 65 to 67.


19 posted on 11/08/2010 5:20:27 AM PST by kabar
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To: goldstategop
Social Security is paid out of work contributions = FICA. Its a compulsory retirement savings program.

No, it is not a retirement savings program. Your contributions do not belong to you. A person could pay into the system for 50 years and not receive a dime except for a small burial allowance. It is a Ponzi scheme.

20 posted on 11/08/2010 5:23:56 AM PST by kabar
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To: Scanian

Democrats do not expand government in order to solve problems; they use problems as an excuse to expand government.
Obamacare,never let a crisis go to waste,Madoff smiles.


21 posted on 11/08/2010 5:41:18 AM PST by Vaduz
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To: Scanian; ding_dong_daddy_from_dumas; stephenjohnbanker; DoughtyOne; dools0007world; Gilbo_3; ...
RE “Starting in 2016, CBO projects, outlays as scheduled under current law will regularly exceed tax revenues. CBO projects that the DI [disability insurance ] trust fund will be exhausted in 2018 and that the OASI [old age and survivors insurance] trust fund will be exhausted in 2042.
Once those trust funds run out, current law says benefits must be cut to the level of revenues from those programs. If DI and OASI are combined in order to “save” the DI portion, the combined fund will run out in 2039.

This is the thing that really upsets be about this issue: No-one can speak the truth. There is no trust fund. There never was (at least not since the 1980s reform created the +20 year surplus.) They started spending that money immediately and it's all gone : it went to roads, bridges, schools, food-stamps, ethanol, the space program, Iraq. Afghanistan, homeland security medicaid , the medicare deficit......(add your favorite wasteful program here) ; in short it went to everything every voter or special interest ever wanted the government to spend money on. Any dollar taken by the federal government is spent immediately because it is setup (democratic) to run debts not surpluses. It is not setup to handle local surpluses in any other way but to spend it. I call this the bi-partision lie. (That there ever was a SS surplus.)

There is NO chance that anything will get fixed as long as it is built on the big 'lie'.

22 posted on 11/08/2010 5:52:17 AM PST by sickoflibs ("It's not the taxes, the redistribution is the federal spending=tax delayed")
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To: JoeProBono
There is no "fixing" something the government has no legitimate authority to be doing in the first place.

End it.

23 posted on 11/08/2010 6:29:37 AM PST by Dead Corpse (III, Alarm and Muster)
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To: sickoflibs
as a teenager i easily understood that the theft of a large portion of my paycheck was a david copperfield sleight of hand...

if the general population cant accept that they dont have a dime of money with their name on it, we will continue down the road with the lie...

24 posted on 11/08/2010 6:45:42 AM PST by Gilbo_3 (Gov is not reason; not eloquent; its force.Like fire,a dangerous servant & master. George Washington)
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To: Gilbo_3
RE :”as a teenager i easily understood that the theft of a large portion of my paycheck was a david copperfield sleight of hand...if the general population cant accept that they dont have a dime of money with their name on it, we will continue down the road with the lie...

To keep us in-line we were told FICA was a sort of pension, not welfare. But it's some conservatives now making the argument now that SS is just another government program (prompted by some in the MSM and some Democrats ironically) running up deficits and it's liberal Democrats that are defending it as a sort of pension and fully funded trust fund. But they don't mind it as just another excuse to raise taxes on ‘the rich’.

But no-one in power wants to speak the truth about the non-existent trust fund. Not even the elected ‘conservatives’. It is frustrating.

25 posted on 11/08/2010 7:13:54 AM PST by sickoflibs ("It's not the taxes, the redistribution is the federal spending=tax delayed")
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To: REPANDPROUDOFIT

Ever look at just how few hours you need to work to qualify for SS? It is ridiculous. I think we need to save Social Security for the people who have paid into it their whole lives. This could be the next Tea Party ralling cry: Save Social Security for the lifetime payers. Also Medicare only for people who have paid in.


26 posted on 11/08/2010 7:17:46 AM PST by sportutegrl (Why are they called Musketeers if they fight with swords?)
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To: Scanian

The most vital correction for SS is to limit what you get out is just commensurate with what you put in. Nothing in, nothing out. This goes for SSI. illegal and legal immigrants. young who have not contributed by working. old people who for various purposes have never contributed, etc etc. Devise some other government program for these but keep SS honest.


27 posted on 11/08/2010 7:39:09 AM PST by noinfringers2
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To: sickoflibs
But they don't mind it as just another excuse to raise taxes on ‘the rich’.

they gotta have the cash...Ive said for years that they could keep my 'investment' and we'll just call it even if theyd let me outta the future extortion...but, that aint happenin...

there is a bit of a problem for those who believed the lie, and the 'contract' should be honored...but they need to be honest themselves too, and accept responsiblity [and lowered] payments for being naive to the lie...

they did pay into the system for as mny as 60 yrs in cases, so they should get something for it, but again, i know that my money went down the rabbit hole long ago, so in essence, they are being gifted and Im gettin screwed...its just that i know it and accept it, and ive lessened the amount that they receive from myself...'legally' of course...

28 posted on 11/08/2010 7:49:03 AM PST by Gilbo_3 (Gov is not reason; not eloquent; its force.Like fire,a dangerous servant & master. George Washington)
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To: sickoflibs

and realistically, if they were serious about honoring the ‘investment’ and taking care of the seniors by the contract, it would only be a matter of cutting some of the pork from fedzilla and actually funding the program with streams other than fica...


29 posted on 11/08/2010 8:12:16 AM PST by Gilbo_3 (Gov is not reason; not eloquent; its force.Like fire,a dangerous servant & master. George Washington)
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To: Gilbo_3
RE :”there is a bit of a problem for those who believed the lie, and the ‘contract’ should be honored...but they need to be honest themselves too, and accept responsiblity [and lowered] payments for being naive to the lie...they did pay into the system for as mny as 60 yrs in cases, so they should get something for it, but again, i know that my money went down the rabbit hole long ago, so in essence, they are being gifted and Im gettin screwed...its just that i know it and accept it, and ive lessened the amount that they receive from myself...’legally’ of course

If politicians wont admit there is no trust fund, then I will not be open to cuts in my benefits, and certainly not to FICA taxes increases(I dont see that in any case). The same goes with discretionary spending and government pensions. Don't (they tell me) we dont have to cut those golden calves because they are peanuts.

BTW: Everytime GWB or spokesman was asked about raising the income limit on FICA taxes (increasing taxes on those who will have their SS benefits income taxed) he replied 'Everything is on the table'. He was willing to sell us out to get his personal accounts.

30 posted on 11/08/2010 8:17:36 AM PST by sickoflibs ("It's not the taxes, the redistribution is the federal spending=tax delayed")
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To: sickoflibs
politicians wont admit there is no trust fund, then I will not be open to cuts in my benefits, and certainly not to FICA taxes increases

since im nowhere near gettin any of it, and am resigned to never get it back, the proactive approach works better today...ie, reduce my taxes by suckin it back outta the trough that they created...disgusting but effective...

31 posted on 11/08/2010 8:37:41 AM PST by Gilbo_3 (Gov is not reason; not eloquent; its force.Like fire,a dangerous servant & master. George Washington)
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To: Gilbo_3; ding_dong_daddy_from_dumas; stephenjohnbanker; DoughtyOne; dools0007world; NFHale; Impy
RE :”since im nowhere near gettin any of it, and am resigned to never get it back, the proactive approach works better today...ie, reduce my taxes by suckin it back outta the trough that they created...disgusting but effective...

Back when I was a clueless college student my Dad warned me that SS/FICA taxes over my lifetime invested would have made me a rich retiree if I got them.(maybe not so much the past 10 years though.) But in the elected world only one this matters :”How do I get the other guess blamed so I can beat him the next election”. In this case instead of admitting that there is no trust fund, nor could there ever be, we get the standard “The other guy raided the trust fund” crap.

It's much more fun to put on my 'cynical politics' hat and plot strategies than to talk about real fixes, because they all lie anyway.

32 posted on 11/08/2010 10:27:17 AM PST by sickoflibs ("It's not the taxes, the redistribution is the federal spending=tax delayed")
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To: sickoflibs

The whole system is a lie.


33 posted on 11/08/2010 10:29:39 AM PST by stephenjohnbanker
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