This Will Never Happen??????

redcliffsw · July 04, 2009, 07:32:40 PM

Billy has good reason to make mention about SS and I'm in agreement with him.
LarryJ, you're right about it being a pyramid scheme and some day it will probbaly
be finished. It's good lesson that we ought to stay the course like the founding fathers
set this country in motion.

larryJ · July 04, 2009, 08:17:42 PM

This is from Senior Living.

Today's Workers Fund Today's Retirees

In other words, the Social Security taxes paid by today's workers and their employers are used to pay the benefits for people who are currently retired, and for other beneficiaries such as workers who become disabled or the families of workers who die.

•Today, there are 3.3 workers paying into Social Security for every person who receives benefits, for a ratio of 3.3 to 1.

•By 2030, that ratio will be 2 to 1.
Part of the reason for the steep decline is that the oldest of the 79 million baby boomers will begin retiring in 2008. At the same time, birth rates are declining.

For now, Social Security is still taking in more money than it pays out in benefits. Any money that's left over goes into the Trust Funds.

•Currently, the Trust Funds have large reserves, but by 2018 those surpluses will start turning into deficits.

•The benefits owed will be more than the taxes collected, and Social Security will have to dip into the Trust Funds to pay benefits.

•In about 30 years, there will be nearly twice as many older Americans as there are today. Those changing demographics put Social Security benefits in jeopardy.

It appears from this article that SS willl be with us for a while yet.

Larryj

redcliffsw · July 04, 2009, 08:59:43 PM

Larryj, you stated that SS is a ponzi scheme. And, there's more....

Where's the trust fund money? Huge reserves? The Fed's have
borrowed from the SS trust fund. Looks like the Fed's owe the
SS trust fund just like they owe China.

There's lots of info about this but you should take a look at this article:

http://www.heritage.org/research/socialsecurity/em940.cfm

So is the ponzi scheme looking any better?

larryJ · July 04, 2009, 09:29:37 PM

Diane, don't get me started on life insurance! It was one of my many trades in the dark ages. I couldn't sell life insurance to a dying man.

Insurance companies collect the premiums and invest those premiums in high interest accounts. If you have a whole life account, then you will reap the benefit of a tiny bit of that interest which will be returned to you at such time that the policy matures and you haven't kicked the bucket. Therefore, the insurance companies have a ton of money to pay out in case they really have to. I only lasted a few months before I got disgusted and quit. "Excuse me, sir, but would you like to buy some insurance so that if, God forbid, you should keel over tomorrow, you could leave something for the wife and kids?" (Choke, Choke, gag, gag) No, thanks.

Red, thanks for the site. Very informative.

Larryj

Anmar · July 05, 2009, 01:25:10 AM

Social Security would be much better off if Bush hadn't borrowed so much money from the program to help pay for the wars.

redcliffsw · July 05, 2009, 07:55:48 AM

Anmar, it is possible that the money was borrowed from SS to pay for
other stuff - like for programs and grants. Afterall, Federal money is not
growing on trees like we'd like to think.

larryJ · July 05, 2009, 08:07:11 AM

I spent some time this morning looking into SS history and predictions. I also read about borrowing. It was way too much information for me to process so early in the morning so I will go back. Suffice to say, Bush did propose borrowing from social security, but remember, Congress controls the purse strings. One of the sites I saw cited the Democrats saying they would not approve of any borrowing from social security, yet when the bill came to a vote, a majority of the democrats in Congress voted for borrowing.

Like I said, once I wake up a little more, I will read more.

Oh yeah, good morning, everyone.

Larryj

redcliffsw · July 05, 2009, 08:27:52 AM

Yeah, the Democrats can say and debate what they want, but in the end, both the Democrats and Republicans
are in cahoots when it comes to the money. They're looking for creative financing you might say and they seem to
find a way when they really want to spend.

Varmit · July 06, 2009, 04:34:38 AM

There has been mention of Social Security being a trust fund, and "I've paid into it so I should get it back". Let me ask ya'll something, just who do you suppose backs this trust fund? The gov't, right? And where do you suppose that backing comes from? Taxpayers. Now, if the gov't includes the taxes that are suppopsed to go towards S. S. into the general budget, and can tap into them whenever they feel like it to pay for programs such as Medicare and medicaid, both of which are unconsititutional, then it is no longer a "you get what you pay in" kind of deal. All it does is increase the burden that future generations will have to pay for. So the next time you get a raise your allowance or more coverage in programs, thank your grandchildren, they are the ones who will be paying for it.

By the way, I will not give up my yearly raise in my wages, that is money that I earned through my labor. What have you done to earn taking even more of taxpayer money?

redcliffsw · July 06, 2009, 05:24:31 AM

Well said, Billy. I'm solidly opposed to such programs by the Fed's.

Our earliest Patriots would never have suggested SS. Further, it's a
losing deal in many ways including our freedoms.

Here's a quote somebody sent me:

"It's an unusual time when half of our country works for a living and half votes for a living."

That just about says it all for now..........