Tag Archives: Social Security

How to Save Social Security

24 Apr

There is really nothing wrong with the Social Security system in our country. Social Security is funded via a payroll tax on all income up to $110,000. You pay 6.2 percent and your employer pays 6.2 percent. And since those numbers were set in 1983, and for the next 30 years or so those payroll taxes provided more money than was needed to pay out benefits to retirees and left a pretty whopping surplus…something like 3 trillion dollars worth of surplus!

But did the surplus get invested in high yield bonds or stocks or anything else that would guarantee that 4 trillion dollar surplus to grow like it should have, astronomically, like say, if it had belonged to the Koch brothers or Walton family or any other billionaire worth his or her billions?

No. Instead Congress borrowed it to spend on its pork filled spending programs, gigantic wars and tax cuts for the wealthy, rather than raise additional taxes or balance their budgets, and then they put treasury bonds up as collateral for the borrowed surplus with a promise to repay at 4% interest, which of course is chump change, to any real investor, let alone a trillionaire, like we Social Security Trust funding taxpayers are supposed to be.

But today the SS fund no longer brings in as much in pay roll taxes as it pays out in benefits so it’s time for the Federal Government to pay its debts… And now, Just like any degenerate gambler, who knew all along that he was never going to pay up when the time came to cover his losses because his losses were simply going to be too big to repay. So what are we hearing from Congress now? “Oh no! The SS program is broken. It was never meant to work. There are too many people taking and not enough people paying into the system. It was all a Socialist scam!” Which of course are all lies because our Congressmen simply don’t want to pay back today, what they have been borrowing and spending over the last 30 years of yesterdays.

Nice, huh? Especially since “borrowing” the surplus SS funds is a polite term that Congress has been using, rather than the correct term of “stealing”, because in order to repay the “borrowed” money Congress will have to borrow money. Which would be like that degenerate gambler saying to his creditors, “May I please borrow some money from you so I can pay you back?”

So what to do? Well first the SS Trust Fund needs a champion…a billionaire manager or board of managers who represent the fund and the taxpayers, as opposed to the degenerate gamblers who have been fraudulently managing it. Then that SSTF manager can let the federal government refinance their treasury bond loans as Government “Student Loans”. You know, the ones that the government provides for our students at 8% interest and beyond. The ones that the government has made 41.3 billion dollars worth of profit on in 2013 alone…and that’s a higher profit level than all but two companies in the world. And they would be Exxon Mobil and Apple!

And if we refinanced the Social Security debt as student loans then, as per federal law, those loans would have to be repaid and could never be forgiven…not even if the federal government declared bankruptcy!

Right now our students owe over 1.2 trillion dollars to the federal government that they must repay at outrageous interest rates while the federal government owes Social Security about 3 trillion dollars at a modest interest rate that most Congressmen are now saying they can’t repay! Ain’t that America? Well, it shouldn’t be.

And don’t listen to any politician who says that he knows how to solve the Social Security problem by dissolving it, especially those who are bought and paid for by the Koch brothers who have said in the past, “We favor the repeal of the fraudulent, virtually bankrupt, and increasingly oppressive Social Security system. Pending that repeal, participation in Social Security should be made voluntary.” …And they are currently spending over 1 billion dollars on a Presidential candidate who will do just that, if he is elected.

It’s just too bad that the American Congress has borrowed America’s money. Just like everyone else they have to make good on a loan and pay it back, with interest. Otherwise they all need to step aside, resign their positions as elected leaders and let honest American men and women fill their posts and honor America’s debts. If we can promise to repay the Japanese and Chinese governments the trillions of dollars that we owe them and yet refuse to forgive the trillion dollars that our children owe us…then we can certainly honor debts to ourselves without boo-hooing about how expensive it’s going to be…can’t we?

And Anyone who says otherwise is a degenerate opportunist who needs to go straight to jail!

And We’re Off…

10 Jan
On the very first day of the new Congress, the new Republican majority took steps that could very well damage the foundations of Social Security. In addition to providing benefits to retired senior citizens, Social Security  also includes a disability-insurance program for those who want to work but can’t due to health reasons. And sometimes when the disability-insurance program runs short on funds, Congress transfers money from elsewhere in the Social Security system to prevent benefit cuts. The transfers are needed every now and then to keep the money flowing to the proper recipients depending upon those who come and go within the system. These transfers have never been considered out of the ordinary and in fact it has been done by Congress 11 times over the last seven decades. That’s an average of once every 6 years or so…
Apparently the system’s trustees are expecting the Social Security disability-insurance program to face a shortfall next year, and are expecting Congress to do what previous Congresses have always done… but…What the new (and improved?) Republican policy says is that transfers must from now on “improve the overall financial health of the combined Social Security Trust Funds.”  Experts say that because of the new and rather vague language used, it would likely mean any reallocation would have to be balanced by new revenues or benefit cuts.” Because a “transfer” of funds doesn’t necessarily mean an “improvement” of funds…does it?
Republicans are saying that this new language is meant to “improve the overall financial health” of the Social Security system but it may just also provide a loop hole (and who in Congress doesn’t love a loop hole?) to clear the way for proposed Social Security cuts, which would be consistent with congressional Republicans’ goals based on their recent past attempts to make cuts, changes and reductions within the Social Security System.
So, If the disability-insurance program is starved of funds then people will inevitably have to face Social Security reductions of one kind or another. Already multi-employer pensions funds, which cover about 10 million U.S. workers, have seen reductions in pension benefits proposed and approved by Congress in last December’s budget spending bill. And if you are a member of a public pension program than you know that a recent and popular government tactic has been to starve your pension of funds by simply withholding promised and negotiated contributions to your fund.
This government policy of trying to break our retirement programs and then declaring them broken and in need of fixing is not only very disturbing, but most definitely immoral, and most probably illegal. But the bigger and more disturbing question that I have is…why? Why this attack on the working poor and middle classes and their promised retirement incomes? First job displacement in the recent past, then wage stagnation in the present, and now proposed reductions in our future pensions?
We already know that our Congressmen and women are bought and sold by big monied interests and as a result are doing their bidding but what are they up to now? Have they been heavily investing in Nursing Home Futures? Or are the banks pushing for a future of more “Reverse Mortgages” because selling the underwater kind just didn’t bring in enough ill gotten gains?
So what’s the deal? Does anyone out there know? I’d like to hear your thoughts because this new Congress is off and running and I sincerely hope we are not all trampled in the process…and then cast off because we are not “financially healthy”…or rather broken…as in broke.
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