Is Social Security Fully Funded?
MoveOn.org, a group allied with the “Strengthen Social Security” coalition, calls for the halt of future reforms to the Social Security program. It states that these proposed reforms are unnecessary as it deems the program to be fully-funded in Treasury bonds, although it also released a statement quoting that after 2037, the retirement system will only be able to pay out an estimated 75% in benefits as opposed to full payment of expected benefits. The faulty logic rests with the fact that the organization believes that since the system is funded with Treasury bonds, it will earn enough money to make up for the shortfall. But this isn’t exactly the case.
The arguments of the group and other like-minded factions are further weakened by explanations from the Clinton administration in 2000. The administration places the assumption of adequate funds in its place by saying that the funds aren’t backed by actual assets, but rather Treasury claims that will get financing from higher taxes or the reduction of benefits when redeemed. Any excess Social Security funds were already spent on other expenditures, and no extra money is left to buffer against future budget cuts, the administration elaborated.
The repayment system as stated by the Clinton administration bolsters the fallacy of MoveOn.org’s contentions that the funds in Social Security are wholly separate from the federal budget, necessitating that it cover its own expenses and work towards eliminating deficits without any aid from the government. While it may be safe to say that the retirement program has funds for itself for the meantime, the funding depends on the bond repayments made by the government to the Social Security trust fund; deposits that will amount to billion-dollar loans or extra taxes per year. Bond repayments through loans will cause a growing deficit that’s expected to reach over billion this year and permanent yearly deficits after 2014.
Richard Eskow of Campaign For America’s Future explains President Obama’s grand bargain which includes cuts to social security, medicare and medicaid. The Largest Online News Show in the World. Google+: www.gplus.to Facebook: www.facebook.com Twitter: twitter.com Subscribe: bit.ly FREE Movies(!): www.netflix.com Read Ana’s blog and subscribe at: www.examiner.com Read Cenk’s Blog: www.huffingtonpost.com
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onstageagain
January 26, 2012 at 7:11 pm
@moorelnda What the government is good at is collecting taxes, taking away your freedoms and killing people. It’s not good at much else. I try to ONLY ridicule people who’s efforts are sincere. Very little trouble has been caused in the world by insincere efforts. An occasional seduction maybe. There were very few insincere Stalinists or Nazis
onstageagain
January 26, 2012 at 8:00 pm
Imagine how fast Social Security would be fixed or replaced if Congressmen had to rely on it like they force everyone else to, instead of on their lucrative special pension fund, sometimes paying millions a year. Heck, imagine how they might even want to learn about real economics instead of all those fallacies once they had such incentives
moorelnda
January 26, 2012 at 8:38 pm
Worst President ever!!!!
MetaI4Brains
January 26, 2012 at 9:31 pm
Congressional benefits —- free healthcare, outrageous retirement packages, 67 paid holidays, three weeks paid vacation, unlimited paid sick days, now that’s welfare, and they have the nerve to call my social security retirement entitlements?
mattm3520
January 26, 2012 at 10:05 pm
Corporatism and private industry is running this country into the ground. We are bailing out these fat-ass companies and CEOs for what? They are just going to fucking take advantage of us again just like they have in the past. We need to have the government regulate these companies or just have socialized medicine. We don’t have to be like Cuba or Canada where it takes several months to get a check-up. We have enough money, everyone just needs to chip in. We need to stop greed.
TheIntoxicatingEgo
January 26, 2012 at 10:49 pm
there is absolutely no viable reason why Soc. Sec. should ever go bankrupt – if the government end Corporations tax breaks & bail outs, AND if they have wealthy CEOs of banks pay their appropriate tax rate, and stop asking the middle class to bail them out AND spending all our money the government gives them on million dollar raises & B.S. tropical resort “business” conventions -if the government stand for people not Banks & corporations there would be enough for universal heath care & Soc Sec
IcedCoffee81
January 26, 2012 at 11:45 pm
I understand other cuts that need to be made within medicaid but why exclude psychological services when depression is more likely to affect poorer people?
vechorik
January 27, 2012 at 12:05 am
Ron Paul’s plan will balance the budget in 3 years without raising taxes!
Social programs remain untouched as the BIG problems are resolved.
Government employees will be phased out as they quit/retire or moved to other jobs.
Learn more at /watch?v=IQAHziV3HoM
FreeTheWorker
January 27, 2012 at 12:11 am
@dumnuts1 A good argument against these people trying to take your entitlements away from you.
Except you’re wrong about socialism. You’re confusing Socialism with the Socialization of goods and services, the terms are similar but their meaning differ.
Socialization of services like public roads is what governments do. Socialism is when the workers own the work place, by each holding a share in the company and each taking home earnings according to their labor and the value of their share.
FreeTheWorker
January 27, 2012 at 12:50 am
What I don’t understand is why people who think we should protect the unborn don’t also believe that we should protect the elderly and infirmed. Well, actually I do understand it, it’s because they believe what sensationalized political cause they’re swept into without actually giving much thought to their positions outside the talking points, and so they only value life until it’s born.
Relliftnek
January 27, 2012 at 1:18 am
Medicare Costs for 2012.
Let me tell you my story about Medicare costs for next year!
Search You Tube for ” Medicare costs for 2012″.
View my “Dear Senator” video, Thanks for viewing!
dumnuts1
January 27, 2012 at 1:21 am
Tell you what — just return the money I’ve paid into Social Security over the years, with interest that only matches inflation, and I’ll call it square. I’ll take care of myself from now on. If, however, you want to keep what I paid and not give me anything because I made good decisions, lived within my means, and now have retirement savings and some equity built up — what you’re doing now is wealth redistribution. Means testing is PC-speak for wealth redistribution. That is socialism .
dumnuts1
January 27, 2012 at 1:48 am
Tell you what — just return the money I’ve paid into Social Security over the years, with interest that only matches inflation, and I’ll call it square. I’ll take care of myself from now on. If, however, you want to keep what I paid in and not give me anything because I made good decisions, lived within my means, and now have retirement savings and some equity built up — what you’re doing now is wealth redistribution. Means testing is PC-speak for wealth redistribution. That is socialism .
dumnuts1
January 27, 2012 at 2:38 am
Tell you what — just return the money I’ve paid into Social Security over the years, with interest that only matches inflation, and I’ll call it square. I’ll take care of itself from now on. If, however, you want to keep what I paid in and not give me anything because I made good decisions, lived within my means, and now have retirement savings and some equity built up — what you’re doing now is wealth redistribution. Means testing is PC-speak for wealth redistribution. That is socialism .
splendor333
January 27, 2012 at 3:21 am
The Government SPENT ALL of the MONEY WE PAID into the S. S. Trust Fund ! So, in order to continue issuing the checks people are SUPPOSED to receive NOT as a BENEFIT, but as payments to us from our own money like the principle of a Debit Card, they are borrowing it from the Fed Reserve Banks,with attached interests as Loans to US Tax-Payer’s. What a scam, cor-corrupt and deceitful way to run a country.America, we are now Welcomed to The North American Union, a new history being written.
PGMEagle
January 27, 2012 at 3:42 am
Obama 1 term president
Depotman122
January 27, 2012 at 4:17 am
While there are many reasons social security is dying one only needs to look back to the clinton admin and welfare reform. Thousands were cast off the welfare ranks and put on social security. Most of them never paid a dime into the system. Many never worked a day in their life
u812joe
January 27, 2012 at 5:06 am
Obama is hellbent on destroying the Social Security Retirement System. Workers need to wake up to the fact the money he is putting into their pockets is coming from their future retirement. The only reason Social Security is a government budget problem is because Congress made it one by spending all the Social Security surplus, $2.5 trillion.
SharriLorraine
January 27, 2012 at 5:43 am
@PinyinReader LIAR. It surely is.
MrBobztermon
January 27, 2012 at 5:45 am
lol…as the top 1% make as much as the bottom 50% we’re all ready to jump in and destroy each others lives. If they do this right (nice and slow) we’ll all be at each others throat for shitting wrong. Keep the dance up America, keep dancing for them as they slowly drain us more and more. Follow the money always !!!!
PinyinReader
January 27, 2012 at 6:28 am
@SharriLorraine Go to hell. This isn’t about race, you twit.
SharriLorraine
January 27, 2012 at 7:25 am
fucking dumb nigger
ghostfacekhila
January 27, 2012 at 8:09 am
Where are the Wimp0crats, progressive left? did they realize that the US is controlled by an imperial presidency which follows no public mandate and that has disenfranchised the whole voting population.