Social Security insolvency is a right wing myth meant to scare you

Discussion in 'Politics' started by OohPooPahDoo, Sep 17, 2011.

  1. OohPooPahDoo
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    OohPooPahDoo Gold Member

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    Social Security insolvency is a right wing myth meant to scare you.


    Seriously. A few points:

    1) Many morons have called SS a Ponzi scheme. This is a brain dead characterization. The reason Ponzi schemes fail is because they eventually run out of new investors. Unless we stop having children - there will always be new tax revenues into the system.

    2) If nothing is done, Social Security can continue to pay benefits under current law for at least a couple of decades. After that, it can only pay benefits at about 80% - but for as far as can be seen into the future, it can continue to pay at that level - thus, even if the politicians do absolutely nothing - 80% of the program is solvent for as far as can be forecast.

    3) Ultimately, the ability of a society to support its retirees and disabled - that is, the ability of those who produce to produce enough for those who cannot produce (either because they are too old to work, or disabled) - doesn't really depend on the particular investment vehicle that those who do not produce use. If the worker to retiree ratio is 2:1 as opposed to 10:1, the workers in the 2:1 situation will have to produce more for the retirees than those in the 10:1 situation. The only exceptions are things that you can actually save for retirement - like a house. Other than your house - everything you need in retirement will have to be made by somebody during (or right before) your retirement.



    4) Social Security taxes do not get wasted - most of them go to pay current benefits. If their is extra, the trust fund buys bonds. If their is not enough, they sell some of their bonds. This does push the burden around in time - this is no secret and no one ever tried to cover it up - but over many decades, the SS Trust Fund will spend the same as it takes in (plus interest paid on its Trust Fund balance).
     
  2. kyzr
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    kyzr Gold Member

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    1. It is a ponzi scheme because the population is declining, and the unemployment rate is increasing, which means not enough money to meet obligations (in 2037)

    2. Correct, but its better to fix SS now than to wait

    3. Not an accounting major are you? Please read the SS Trustee Report. (SS is fixable Medicare is a mess)

    4. Its the COMBINATION of SS & Medicare entitlements that is the problem. They OWE $50-trillion in benefits, and can't cover them all. We need them fixed, not idiots who keep saying "there is no problem".

    Trustees Report Summary
    Conclusion
    Projected long-run program costs for both Medicare and Social Security are not sustainable under currently scheduled financing, and will require legislative corrections if disruptive consequences for beneficiaries and taxpayers are to be avoided.
     
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  3. CrusaderFrank
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    CrusaderFrank Diamond Member

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    "I cannot guarantee that those checks go out on August 3rd if we haven't resolved this issue. Because there may simply not be the money in the coffers to do it" Barack "Social Security Really is Bankrupt" Obama, the Downgraded President
     
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  4. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Dems 2008: These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis

    Dems 2011: These two entities—Social Security and Medicare—are not facing any kind of financial crisis
     
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  5. bigrebnc1775
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    bigrebnc1775 Diamond Member

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    If Social Security insolvency is a myth why did obama use social security checks as a hostage to get the debt ceiling limit raised?
     
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  6. uscitizen
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    uscitizen Senior Member

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    Republicans 2008 the economy is sound.
    Republicans 2011 The economy sucks and it is all Obama,s fault.
     
  7. uscitizen
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    uscitizen Senior Member

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    Umm if the people that prinit the checks are liad off no checks will be printed.
    Kind of like going to your bank on a holiday, money in there but you can't get it out.
     
  8. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Well, er, um...Tea Party!
     
  9. Oddball
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    Oddball BANNED Supporting Member

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    [​IMG]
     
  10. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Topic: here

    You: Not here.

    See the problem?
     

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