Social Security going broke?


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From MoveOn.org

Myth #1: Social Security is going broke.

Reality: There is no Social Security crisis.  By 2023, Social Security will have a $4.6 trillion surplus (yes, trillion with a ‘T’).  It can pay out all scheduled benefits for the next quarter-century with no changes whatsoever.1 After 2037, it’ll still be able to pay out 75% of scheduled benefits—and again, that’s without any changes. The program started preparing for the Baby Boomers’ retirement decades ago.2  Anyone who insists Social Security is broke probably wants to break it themselves.

Myth #2: We have to raise the retirement age because people are living longer.

Reality: This is a red-herring to trick you into agreeing to benefit cuts. Retirees are living about the same amount of time as they were in the 1930s. The reason average life expectancy is higher is mostly because many fewer people die as children than they did 70 years ago.3 What’s more, what gains there have been are distributed very unevenly—since 1972, life expectancy increased by 6.5 years for workers in the top half of the income brackets, but by less than 2 years for those in the bottom half.4 But those intent on cutting Social Security love this argument because raising the retirement age is the same as an across-the-board benefit cut.

Myth #3: Benefit cuts are the only way to fix Social Security.

Reality: Social Security doesn’t need to be fixed. But if we want to strengthen it, here’s a better way: Make the rich pay their fair share.  If the very rich paid taxes on all of their income, Social Security would be sustainable for decades to come.5 Right now, high earners only pay Social Security taxes on the first $106,000 of their income.6  But conservatives insist benefit cuts are the only way because they want to protect the super-rich from paying their fair share.

Myth #4: The Social Security Trust Fund has been raided and is full of IOUs

Reality: Not even close to true. The Social Security Trust Fund isn’t full of IOUs, it’s full of U.S. Treasury Bonds. And those bonds are backed by the full faith and credit of the United States.7 The reason Social Security holds only treasury bonds is the same reason many Americans do: The federal government has never missed a single interest payment on its debts. President Bush wanted to put Social Security funds in the stock market—which would have been disastrous—but luckily, he failed. So the trillions of dollars in the Social Security Trust Fund, which are separate from the regular budget, are as safe as can be.

Myth #5: Social Security adds to the deficit

Reality: It’s not just wrong—it’s impossible!  By law, Social Security’s funds are separate from the budget, and it must pay its own way. That means that Social Security can’t add one penny to the deficit.
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6 Comments

Everyone with an interest in this issue should e-mail Huffman, Boxer and Feinstein a copy of this article. I have, and it was easy and fun.

    I wish that I believed that national politicians are merely ignorant, at least about things they care about, like getting rich on bribes from lobbyist. A lifetime of looking has failed to provide convincing evidence of ignorance beyond the willful ignorance that just doesn’t give a damn.

    Every bit of “news” seems to confirm for me that there is a large scale looting of the country going on. We have to be understanding. There was so much wealth that is taking decades to rob it all. As far as the attack on Social Security, nothing has changed over the past umpteen administrations, except the opposition weakening. My criminal relatives, no doubt (I don’t have anything to do with them), recognize the con. Money in the locked cash box. Claim loudly that the locked box is now empty the money stolen by some unknown evil intruder, perhaps claiming to have had a glimpse of someone handling the box. The purpose of course is to eliminate the perpetrator as a suspect in the minds of those who witness, when the box is subsequently opened, that indeed the box is empty. Of course the con man has picked the lock and stolen the money before raising the alarm. He will go on to use that confidence in his innocence to lead a vigilante mob into hanging some innocent minority person and steal yet more money and valuables. The Federal Government is now little more than a long con.

    Federal government has become so corrupt that the sensible attitude is to wonder how it is that they are going to try to explain why benefits are continually cut because the trust fund is broke in spite of the trillions of Federal bonds in the bank, or are they?

    Interesting times.

    ybera

Though I worked for over 20 years in investments and Wall Street I had no idea how utterly corrupt and deceitful our government systems have been set up to steal our wealth that we have paid and pay into.

It was not until the past few years, when I’ve been able to step back and away from the belly of the beast, as to how deep and how long the plan has been in place to fleece the people of the United States of everything they have paid into.

Here is some more in depth information as to the great SSN scam for anyone who would like to know the nuts and bolts from alternative narratives and researchers.

http://realitybloger.wordpress.com/?s=social+security&submit=Search

‘Did you know that over 130 countries in the world now have a Social Security Insurance program? Did you know that Social Security is run and regulated by the United Nations and its World Bank?

Have you ever heard of the International Social Security Association (ISSA)? Did you know it was founded in 1927, a full 8 years before our Social Security System was in the U.S. by the League of Nations?

And did you know that the United States Social Security Administration has international treaties and agreements through the United Nations with other countries and their Social Security Systems?

Well, its all true… But before we get into that, let’s make sure we understand just what this Social program really means, being a United States Citizen with a Social Security Number.

It is so much more than you might think…

I find it hard to accept that there is probably no solution to this issue other than a grand battle in the streets.

    It is a relief that few consider a grand battle in the streets. I have seen those. No one would want that. OTOH, I will reserve judgement about how we are going to deal with all this until after we start talking honestly with each other face to face. The people united will never be defeated, and we are so divided that we can’t even put up a struggle. Ergo, deal with the division. That is in our power. Talk with someone you are reluctant to speak with about the state of the community. That is how it starts.

    ybera

If you are counting on S.S., you better think again. It is doomed to failure in the next few years. Less than 10 by my reckoning. The argument over the ‘trust fund’ is pointless. When the dollar is not the world’s reserve currency (soon) and the economy of the Us collapses, (soon) the social safety nets will all disappear. The name of the game is BAU (business as usual) until it isn’t possible anymore. That time is rapidly approaching. I’m planing for it, are you?

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