Saturday, September 3, 2011
Is the sky falling for social security?
Some people think that they will never see benefits from SS. Candidate Perry argues that it is illegal and a ponzi scheme. This is wrong. Perry has huge resources (he could easily personally afford the litigation) so if it is illegal he should organize a suit against SS or shut up. A ponzi scheme? Was it designed wherein the retirement population would grow beyond the wage earners ability to support it? The number of wage earners and SS recipients fluctuates. We are in a difficult time for SS due to the baby boom and some increase in longevity. The Senate committee on aging wrote a comprehensive report on the numbers and possible fixes in 2010. Click here to read it. SS has had excess income over payments for decades. That will probably end in 2016. It will run out of buffer (the trust fund) in 2037. How can SS be fixed? 1.1% added from earnings in 2022 and 2052 would correct the shortage. So would temporarily removing the cap on SS tax. There are many other options and all are modest. Hysteria over this issue is not informed or well reasoned.
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I just listened to a news cast from 2001 where a senator said we should balance the budget by using the Social Security surplus. Surplus, how can Social Security have a surplus? All the money is needed fro future payments. Go figure.
ReplyDeleteThey have borrowed from it in the past I believe but that seems even a worse idea now!
ReplyDeleteWhat is not addressed is SS not only pays for the retirees but also disabilities for the poor as well as medical and don't forget rampant fraud. It has paid for the mission to the moon and the war in Vietnam, there is no trust fund it does not exist never did all moneys' collected for SS went into the federal tax pool and then paid out of that. There was no savings the so called surplus that was supposedly built up over the years was never set aside it went into the kitty with all the other revenue and then was promptly spent.
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