This forum post is hidden because you have chosen to ignore reformcongress. Show Details
This forum post is hidden because you have submitted an abuse report against it. Show Details
In Response to RE: Union Thugs And Their Hatred by scott4321
75% of its benefits to people who will have paid in far more than those retired today have<<< And that is only through 2036 when the Trust Fund runs out. After that, there is no telling.
Let's face another truth here too. The money that is on paper in the Trust Fund really isn't there. In order to cash those debt obligations, new ones will have to be issued some where else, so no reduction in the debt. The SSA trustees is recommended both cuts in benefits and increases in workers' contributions. The Wealthy people did not cause that. THE GOVERNMENT DID. THE DEMOCRATIC PARTY DID.
Neither of those are viable options. Even eliminating the limit of ordinary income to which SS tax is subjected to won't solve it.
The only to solve it is to put the money in private accounts that the government doesn't have to pay interest on and that the government can't borrow and spend else where. Enron was bad. The Federal Government is Enron multiplied by 1 million.
The government does not, and never will have the ability to pay that money back, and they will never be able to make it viable again unless they never are allowed to borrow from it again by taking surplus revenues from the FICA tax and turning them into debt, and then spending that money which they borrowed. They're paying interest on debt that they have to borrow to pay. This isn't rocket science. SS was not designed to be what it is today, or maybe they just lied again and kept it in the drawer so that they could use "Any type of reform to blame the other Party of throwing grandma off the cliff", LIKE THE DEMOCRATIC PARTY IS DOING RIGHT NOW.
Do you truly believe that almost 38 million people would have to be dependent on it if it had been invested at rates of return 3 or 4x what the it has gained? Since 1985, almost 1$ trillion of the total growth of the OASI Trust FUnd(just this one) was from the interest paid by the government. It grew by a lower rate than the CPI increase since the 1982-1984 period, which is what the BLS uses for the base period with today's CPI. Good thing they stopped using the 1967 base, because you can multiply the CPI by 3 from what it is now if they still used it.
Social Security has growh by 100%. Consumer Prices by 127%. ATT STock, for example, grew by 664% since 1985. I haven't a stock yet that performed as bad as Social Security(38 million recipients that could be A LOT RICHER RIGHT NOW compared to maybe 250,000 people that lost everything they had. Lets put this into perespective, and I'll even thrown in WorldCom. There was a total of about $500 billion lost in wealth from those two companies. You can find any combination of 30 stocks in the stock market since 1985, and add them up using the surplus revenues to SS from that period forward including their dividends, and the value of the total fund would be 10 or 20x higher without ever requiring one dime of interest paid to it by the Federal Government. $25 Trillion x 15% tax to $50 Trillion x 15% tax would be any where from $425 billion to $950 billion. Noone would have starved, and not a single dime would had to have been borrowed to take care of those people from WorldCom and Enron that lost everything. NOT A SINGLE DIME, plus a Trillion less in interest paid, not to mention $2.5 trillion less in National Debt< at the very least than we have now.
You know what else? This Recession would not have occurred, because a whole lot more people would be able to buy a home because of the private funds would have been inheritable. There would have been much less consumer debt. And, just for devil's advocate sake, if there was a recession, it would't be taking this long to recover because consumers would have less debt to pay off before they gain some confidence back.
Just FYI, the average interest on Intragovernmental debt = 4.72% as of August this year. There is $4.5 Trillion intergovernmental debt, because they couldn't borrow it elsewhere, which means the credit rating should have been down graded A LONG TIME AGO.