Social Security: Workers in their 40s and 50s... Expected benefits cut by nearly a quarter at age 65.

Head in the Sand

(and other places)

Politics

“I’m not going to cut Social Security like every other Republican, and I’m not going to cut Medicare or Medicaid.

Every other Republican is going to cut, and even if they wouldn’t, they don’t know what to do because they don’t know where the money is. I do.”  President Trump

Trump Keeps Another Promise: Ignore Social Security’s Impending Shortfalls

This has caused angst among realists who see the federal program failing to meet its promises in less than 17 years and offering various ideas and suggestions on how to “fix” it. But the president isn’t listening. 

The program’s trustees will be issuing their annual report on its financial condition shortly, which isn’t expected to forecast any improvement over last year’s report: The so-called trust funds behind the disability program will be depleted by 2023, those supporting the hospital coverage will be exhausted by 2028, and the main program supporting the retirement and survivors benefits will be gone by 2035. 

That means that disability benefits would be cut by 11 percent, hospital insurance payments would be reduced by 13 percent, and the retirement/survivors’ program will suffer a 21-percent haircut.

 

There’s no such thing as a “permanent” fix for Social Security, as it was flawed from the beginning. Sold to a gullible and uninformed citizenry as “insurance” in 1935, with taxes starting out at very low rates, it was never actuarially sound. It looked and behaved more like a Ponzi scheme as Ida Mae Fuller discovered when, after paying into the plan briefly, she lived long enough to receive benefits many multiples of her contributions. 

Ida May and the Ponzi Scheme

Ida May was born on a farm in Ludlow, Vermont in 1874. She worked as a legal secretary in Ludlow for most of her career, and after three years of paying Social Security payroll taxes, she retired in 1939 at the age of sixty-five. According to the Social Security Administration (SSA)'s website, the total amount of Ida May's contribution to Social Security was $24.75. 

Apparently Ida May came from good Vermont stock, because she passed away in 1975 at the ripe old age of 100 years. And by the time of her death, she had received a total of $22,888.92 in monthly payments from Social Security. With her longevity, 

Ida May had achieved an impressive 92,480% return on her investment. 

Not a bad deal if you're Ida May, but if you're administering the system, or if you're any of the other folks paying into it, then her example might be a source of consternation.

 

Trump’s promise to keep his hands off Social Security might actually work for freedom’s benefit, as inaction will hasten the program’s demise. 

That will force the conversation to consider other alternatives than just tweaking the existing immoral and corrupt program to extend its life a little further.

 DYI:  Let’s get this out of the way; yes I did vote for Trump and no I’m not having any regrets.  He simply was the best looking horse in the glue factory as far as politicians are and significantly better than the kleptomaniac Hillary Clinton. 

Politically I’m a Libertarian unfortunately Gary Johnson is not a libertarian and to make matters worse for the party a complete moron.  The Green Party are socialist’s and if you desire that nonsense move to Venezuela – and take Bernie Sanders with you!   So….My vote went to Trump.  As with any and all political parties never become enamored; as that will lead to disappointment on a grand scale.  What is required is a liberty based political blow torch ready at all times when politicians deviate (which is the norm rather than the exception).

President Trump during his campaign speeches “knows where the money is” was nothing more than stump speech bluster.  Between Social Security and Medicare/Medicaid during Trump’s first term budget deficits are going to soar (if nothing is done).  The chart that includes both S.S. and Medicare is assumed that the underling cost of medical care will remain static as costs are pushed up by our ageing population.  But alas as I’ve stated many times before medical care is moving up 9% to 10% per year for this industry colludes in order to price fix and is now forming local/regional monopolies all with the implied mentality that competition is a sin removing any price reducing market forces.

So…Huge and growing budget deficits will remain; adding to our already massive national debt so much so that in the near future purchasers of our Treasury securities will demand a higher interest rate to offset the increasing risk of default/inflation.  This in turn will compel rating agencies to downgrade Treasury securities placing further funding pressure (higher interest rates) of the Fed’s debt.  All this debt will continue to crowd out the private sector hindering economic growth placing the economy into vicious circle as slow growth equals reduced tax receipts acerbating the funding problem further.  

If Trump runs for reelection (or doesn’t) within four years it is highly likely budget deficits – unless true reform occurs – will near or exceed the per year trillion dollar level!  This is all WITHOUT a recession.  The economy has been growing (what little there is) since March of 2009 creating the very real possibility of recession within the next four years causing deficits to soar to biblical dimensions.  During the 1980’s and 1990’s the thought process was “deficits don’t matter” now that the overall debt is so large the chickens will soon come home to roost pushing America into the monetary direction of Argentina.

  Make America Great

7

Sisters

Of

Institutional Change

1.)   End the Federal Reserve

2.)   Repeal 17^th Amendment – Reinstate Federal Senators chosen by State Legislators.

1. Term Limits – Constitutional Amendment

A. Two six year terms for Senators

B. Three terms House of Representatives

3.)   Repeal 16^th Amendment – Income tax replace with value added tax.

4.)   Pass the Balanced Budget Amendment

5.)   Exit the United Nations

6.)   Reign in the Medical Industrial Complex

a. Enforce Anti-Trust Laws

b. Pass Legislation for re-importation of ethical drugs

7.)   End Federal and Private Student Loans

DYI