saintfan
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I am posting this article so I can make some comments.
Trustees project serious financial challenges for Social Security and Medicare
The article states that Medicare will run out of money in 2019, and Social Security in 2041. These are been stated many for many years. The sky has been falling as long as I have been employed. To keep Social Security solvent we have raised the tax rates and retirement eligibilty age a few times. Yet the problem continues to be around.
My concern here is not the viability of either program, and the actions that Congress will take to "attempt" to fix it. Rather I want to address some of the comments made by readers of the article.
It seems to me that young people are blaming the baby boomers for being greedy, part of the "I want it Now" generation, and are mortgaging the future of their grandchildren so they can get more social security.
What bothers me is that social security was started in the 1930s, with the first recipient receiving money in 1940. The program pre-dates the baby boomer generation. Throughout their working lives, baby boomers have been contributing to the program, with most never having received a penny to date. They have seen their rates rise and the age to maximize their entitlement go from 62 to 65, and then to 67.
Where is all this money going? Its not going to the baby boomers, in fact, its not going into retirement at all. Our elected officials have been using the social security fund as a cash cow since 1964. They have been using the money that was supposed to go into our retirement as part of the general fund, and they have not been repaying it. In 1992, the Clinton Administration passed the largest tax increase in the history of the country, with the promise that 10% of the increase would go towards repaying that which was borrowed. The account for that money was established, but no money has ever been placed into it. All the account has received is another IOU, accelerating the SS deficit.
If the money has been deposited properly, we would have more than enough to adequately fund the program ad infinitium. Instead, what we actually received was an effective tax increase of 8.5 percent. To make matters worse, instead of receiving a pre-tax benefit, Congress said that 15% of SSI is not taxable, but 85% is since we did not pay that into the program. Nevermind that they had our money for many years without paying interest, but we have effectively been giving an interest free loan to the government.
Raising the retirement age has had the effect of the government keeping that what was paid into the system staying with the government. How many people die between 62 to 65. How many more die before reaching 67? When people die before they begin receiving SSI, who get the money? If there is no spouse, and adult children, nobody but Uncle benefits. They won't even pay the pittance of $250 for burial expenses if there is no direct dependent survivor.
I submit to you, that the baby boomers are NOT the cause of the social security crisis, but rather our politicians who have not practiced fiscal responsibility in dealing with our retirement fund. Place the blame where it really belongs, those who are in a direct position to have managed the account, our Congress.
Trustees project serious financial challenges for Social Security and Medicare
The article states that Medicare will run out of money in 2019, and Social Security in 2041. These are been stated many for many years. The sky has been falling as long as I have been employed. To keep Social Security solvent we have raised the tax rates and retirement eligibilty age a few times. Yet the problem continues to be around.
My concern here is not the viability of either program, and the actions that Congress will take to "attempt" to fix it. Rather I want to address some of the comments made by readers of the article.
It seems to me that young people are blaming the baby boomers for being greedy, part of the "I want it Now" generation, and are mortgaging the future of their grandchildren so they can get more social security.
What bothers me is that social security was started in the 1930s, with the first recipient receiving money in 1940. The program pre-dates the baby boomer generation. Throughout their working lives, baby boomers have been contributing to the program, with most never having received a penny to date. They have seen their rates rise and the age to maximize their entitlement go from 62 to 65, and then to 67.
Where is all this money going? Its not going to the baby boomers, in fact, its not going into retirement at all. Our elected officials have been using the social security fund as a cash cow since 1964. They have been using the money that was supposed to go into our retirement as part of the general fund, and they have not been repaying it. In 1992, the Clinton Administration passed the largest tax increase in the history of the country, with the promise that 10% of the increase would go towards repaying that which was borrowed. The account for that money was established, but no money has ever been placed into it. All the account has received is another IOU, accelerating the SS deficit.
If the money has been deposited properly, we would have more than enough to adequately fund the program ad infinitium. Instead, what we actually received was an effective tax increase of 8.5 percent. To make matters worse, instead of receiving a pre-tax benefit, Congress said that 15% of SSI is not taxable, but 85% is since we did not pay that into the program. Nevermind that they had our money for many years without paying interest, but we have effectively been giving an interest free loan to the government.
Raising the retirement age has had the effect of the government keeping that what was paid into the system staying with the government. How many people die between 62 to 65. How many more die before reaching 67? When people die before they begin receiving SSI, who get the money? If there is no spouse, and adult children, nobody but Uncle benefits. They won't even pay the pittance of $250 for burial expenses if there is no direct dependent survivor.
I submit to you, that the baby boomers are NOT the cause of the social security crisis, but rather our politicians who have not practiced fiscal responsibility in dealing with our retirement fund. Place the blame where it really belongs, those who are in a direct position to have managed the account, our Congress.
