The answer to this question is, “Absolutely not—NO!”.
Our nation’s Social Security is self funded by employee and employer payroll contributions.
From the very beginning in 1935, the fund has collected a surplus in excess of
$2.5 Trillion which is invested in interest bearing U.S. Government securities
held in the Federal Building on Avery Street in downtown Parkersburg, West
Virginia. Don’t believe what some of the politicians and propagandists tell you
and would have you believe to the contrary. They are either ignorant of the
facts or downright liars.
Also, contrary to what some of these politicians and
partisan Think Tanks tell you, our (your) Social Security Fund is currently rated
as one of the most well managed institutions in government with an administrative
cost of (I think this is close) around 2%, it’s solvent, and expected to remain
so for the next ten years (I’m not really sure we can say that much for the
rest of our government). You will hear all kinds of politically partisan gobbledygook
to the contrary; but, at the present, you can take this to the bank. I’m sure
my information is accurate, and I wouldn’t tell you this if I didn’t believe
it.
But I must also tell you. The only sure thing in life
is change (no one knows this better than you). Tomorrow isn’t today. Up until
the past two or three years, payroll deductions paid into the S.S fund have
exceeded payments of benefits from the fund (thus the surplus of $2.5
Trillion). Now this is in reverse. We are paying out more benefits than we are “taking
in”, thus reducing the surplus. People are living longer; the “baby boom” generation
is retiring, etc. This will continue until our surplus is spent (insolvent) or
our Congress creates the necessary adjustments to the S.S. law to correct the
imbalance, saving our system (I think the last time this was done was under
President Reagan in 1981). In my opinion, this is one of the easiest and
simplest problems to solve before our elected representatives today. Surely
they recognize the importance of this program to the people and the continuing security
of our country. I can't comprehend why they haven't done it.
I have shown you that our Social Security program is
not part of the federal budget, is a stand-alone self funded program and,
therefore, does not affect the national deficit, a fact supported by a
declaration in 1990 by Congress to that effect. To the same end, I ask that you
keep in mind when, in the future, our nation adopts a program of healthcare for
all, that you insist of your elected representatives that that system also be completely
self funded with zero over runs each year, therefore also not having any effect
on budget deficits. Presently, payroll deductions notwithstanding, some
Medicare costs affect the deficit. When we are able to achieve this, we will
find that a self funded program of healthcare for all will greatly contribute
toward the reduction of our national deficit and, in the end our national debt.
Until the next time,
Ronald Miller
Ron, I have studied this and Social Security is not fully funded. Stating in 2010 Social Security began paying out more than it receives. The surplus is estimated to run out in 1933 (likely before because they never estimate right). When it does, it is already planned that all present and future recipients will take a 28% cut. Someone receiving $1,000 will be cut to $720. Even then it will not likely be resolved as millions more participate and life expectancy goes up.
ReplyDeleteHaving said the above you and I understand that our current economy will not last another 14 years. There is no way of telling what the future will bring other that things will be much worse than they are today. Our governing officials are not interested in fixing our problems simply because they cannot be fixed until after the collapse, at which point we have no clue of what it will be.
Oops, wrong year posted. :-)
ReplyDeleteThe surplus is estimated to run out in 2033.
I will add the Medicare and Medicaid are unfunded by tens of $trillions.
The subject of the economy, the deficit and the budget needs no discussion if you just take the time of looking at the US Debt Clock. The future is there in black and red. If we can understand it, there is no need to listen to any politician or the media.
ReplyDeletehttp://www.usdebtclock.org/