American elderly about to be thrown under the bus

Arcangl86

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Yes. I wonder how SS got into such trouble. I read somewhere that it will go insolvent down the line. I'm concerned for future generations.
A couple of reasons. Part of it is that people just are living longer, which means more benefits are being payed out. Second, the Baby Boomers are starting to retire. Even though a large number of them are putting off retirement, the sheer size of the generation is putting a strain on the system. Both of those are outside government control. One thing that is in government control and probably the biggest issue is that the Government uses the Trust Fund to cover operating expenses. It's an accounting trick that has been behind a lot of shrinking deficits, including the Clinton budget surplus.
 
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OldWiseGuy

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One thing that is in government control and probably the biggest issue is that the Government uses the Trust Fund to cover operating expenses. It's an accounting trick that has been behind a lot of shrinking deficits, including the Clinton budget surplus.

Probably the most misunderstood part of SS. Borrowing the Trust's funds is necessary. If not borrowed it would cause a cash crisis of epic proportions. It would be like a town where everyone put money into a bank but no one borrowed it. Soon all the money in the town would be in the bank. We can't remove $trillions from the economy and expect it to thrive. The "special issue" bonds used to borrow the Trust's funds insure that this money stays in circulation. Nothing is lost, and the funds will be paid back to SS with interest when needed.
 
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SS isn't in trouble. It is used as a political ploy to scare people into voting for Democrats.
Actually it is in serious trouble. Some simple modifications could extend its lifespan significantly, but those modifications have been made yet.
 
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angeltrue

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Mat 6:30-34
30) Wherefore, if God so clothe the grass of the field, which to day is, and to morrow is cast into the oven, shall he not much more clothe you, O ye of little faith?
31) Therefore take no thought, saying, What shall we eat? or, What shall we drink? or, Wherewithal shall we be clothed?
32) (For after all these things do the Gentiles seek, for your heavenly Father knoweth that ye have need of all these things.
33) But seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you.
34) Take therefore no thought for the morrow: for the morrow shall take thought for the things of itself. Sufficient unto the day is the evil thereof.
That's a good verse but I believe that God still expects us to act when it's appropriate. I don't know why there hasn't been marches on Washington over the way the country is being run so badly. I'm afraid we won't wake up until something bad happens.
 
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OSAS 101

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Benefits are based on family size. Babies are considered to be "a person" in a household and receives nearly the same food cost allotment as a working adult.



Most retirees have other sources of income.

https://www.newretirement.com/retirement/average-retirement-income-2018-how-do-you-compare/
False, most retirees have nothing but social security
Boston College research?
Those are the rich who don't go downtown at 7 in the morning to see all the homeless elderly
 
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angeltrue

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Probably the most misunderstood part of SS. Borrowing the Trust's funds is necessary. If not borrowed it would cause a cash crisis of epic proportions. It would be like a town where everyone put money into a bank but no one borrowed it. Soon all the money in the town would be in the bank. We can't remove $trillions from the economy and expect it to thrive. The "special issue" bonds used to borrow the Trust's funds insure that this money stays in circulation. Nothing is lost, and the funds will be paid back to SS with interest when needed.
So you don't believe that SS will go insolvent? I read by 2030.
 
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angeltrue

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A couple of reasons. Part of it is that people just are living longer, which means more benefits are being payed out. Second, the Baby Boomers are starting to retire. Even though a large number of them are putting off retirement, the sheer size of the generation is putting a strain on the system. Both of those are outside government control. One thing that is in government control and probably the biggest issue is that the Government uses the Trust Fund to cover operating expenses. It's an accounting trick that has been behind a lot of shrinking deficits, including the Clinton budget surplus.
That makes sense - the life expectancy and the baby boomers. Although I read that built into Obamacare (Omurdercare) was a provision that medical treatment could be withheld for the elderly. I haven't looked into too much so don't know the specifics.

So they're using the SS fund to pay off other debts?
 
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Arcangl86

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That makes sense - the life expectancy and the baby boomers. Although I read that built into Obamacare (Omurdercare) was a provision that medical treatment could be withheld for the elderly. I haven't looked into too much so don't know the specifics.

So they're using the SS fund to pay off other debts?
There aren't any specifics, because there isn't any such provision. There are things to complain about in the ACA, but the whole death panel thing is a complete myth. And yes the Trust Fund which is the surplus taken in from payroll taxes that isn't spent on benefits is being used to cover the general fund. Something like a third of government debt is inner governmental.
 
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OldWiseGuy

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I read by 2030 it will go insolvent - although I haven't researched the veracity of it.

I wouldn't vote Democrat because of SS.

Social Security is fully funded until 2034, and after that it is about three-quarters financed. This article offers a better explanation: https://money.cnn.com/2016/06/22/pf/social-security-medicare/.

There are several possibilities for fixes that would preserve benefits for a longer period; thus far the government has not acted on them.
 
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SSA and Congress will make adjustments to preserve it albeit with smaller benefits.

If we are talking about smaller benefits for future recipients, why not make cuts now for current recipients?
 
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OldWiseGuy

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If we are talking about smaller benefits for future recipients, why not make cuts now for current recipients?

I don't think that's a good idea. People are too addicted to the current benefits. I think we monitor the program and see what this new economy will bring. If the economy continues to surge and manufacturing returns significantly revenues from workers will also increase significantly. SS recently suspended annual benefit increases due to 'stagflation'. I'd support suspending increases but not decreasing them at this time.
 
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OldWiseGuy

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That makes sense - the life expectancy and the baby boomers. Although I read that built into Obamacare (Omurdercare) was a provision that medical treatment could be withheld for the elderly. I haven't looked into too much so don't know the specifics.

So they're using the SS fund to pay off other debts?

They're borrowing from Peter to pay Paul, but they still owe Peter.
 
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I don't think that's a good idea. People are too addicted to the current benefits. I think we monitor the program and see what this new economy will bring. If the economy continues to surge and manufacturing returns significantly revenues from workers will also increase significantly. SS recently suspended annual benefit increases due to 'stagflation'. I'd support suspending increases but not decreasing them at this time.
But at some point someone will have decreased benefits. Why not reduce benefits for those collecting now so that those folks now entering the workforce will not have to face reduced benefits in 50 years? They will still undoubtedly have to receive decreased benefits, but that would allow them to get a little more. I'm not suggesting that this be an across the board cut, surely cuts could be made that would spare the poor.
 
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OldWiseGuy

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It's always the poor who go unnoticed and unhelped.
The real poor people don't belong to AARP.

The poor aren't a homogenous group. If there are 1000 poor people there are likely 1000 reasons why, and 1000 different solutions to their problems. Consider the poor mom who has four kids to feed. When they are grown and gone her problem is gone as well. All she needs to do is hang on until then.
 
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