Thursday, October 31, 2013

Is Social Security Really Secure?

The Rumor Mill News Reading Room 
Is Social Security Really Secure?
Posted By: Liberty_Lady [Send E-Mail]
Date: Thursday, 31-Oct-2013 07:55:44

Significant cuts to entitlement programs is being discussed again and is one of the carrots that Obama held out when they were dancing around the fiscal cliff earlier this month.
Gee, another one of those campaign promises not kept. Did Obama really think that once he was elected, everyone would just forget about the things he promised to do? It's no doubt what his handlers told him but the American people are starting to wake up.
Once again cuts to Social Security, Medicare and Medicaid are on the table. I wonder how his supporters feel about him now? It doesn't surprise me that some Republicans leaders are salivating over these cuts. They'd rather rob from the poor and give to the rich. The truth is so would some of the Democratic leaders. They are just not as honest about it.
But there seems to be a disconnect even among Republicans. According to the most recent polling by Lake Research, 82% - a clear majority of Republican voters - are opposed to these cuts. You know that the majority of Democratic voters are opposed. So why is this even on the table?
The 1% and the large corporations don't want to see their billions cut into. After all, they feel 'entitled' to most of the pie. Like Richard Eskow said in his Campaign For America's Future/OPED, "Apparently it's just easier to take the money from the middle class." I would add, it's much easier rather than to make the necessary changes that would really fix the economy. Instead they scream about the entitlements being a broken system.
Medicare and Medicaid aren't broken, they're overburdened thanks to our wonderful leaders, but they're far more efficient than private health insurance companies are. They have been operating just fine for many years. And I know since this is my field to deal with them on a regular basis. They would continue to operate just fine if this administration and Congress would leave them alone.
I was under the impression that in a democracy, the people were the ones who were supposed to make the decisions, not corporations or private billionaires. But that isn't true. He who has the money makes the rules. And changes them to suit themselves. So you can expect some serious cuts to Medicare, Social Security and Medicaid, probably next year.
Let's take a look at Social Security and Medicare as they were created. The Economic Security Act, later renamed Social Security Act was signed into law by FDR in 1935. Medicare was signed into law in 1965. Over the years changes were made to social security. In 1939 survivor benefits for retiree's spouse and children was added. In 1956 disability benefits were added. In 1935 taxes were collected for social security benefits called FCIA or Federal Insurance Contributions Act. This was code for the IRS.
The social security program, as designed in 1934, was different than Welfare in that it was a contributing program in which workers and their employers paid for the costs of the benefits - with government acting as the funds administrator. FDR directed that it was always to be 'self supporting'. It took a little tweaking but finally the system projected a $47 billion surplus by 1980 - with no general fund financing.
FDR wanted this 'insurance' program enacted after the crash of 29 and the following Great Depression of the 1930's when poverty rates among seniors rose to above 50%. The crash of 29 had wiped out retirement savings and the following bank failures added to the pain.
The Act was to provide benefits to retirees, and the unemployed, pay a lump sum benefit at death, to help widows and under-aged children. Money was also funneled to states as assistance to individuals, the unemployed, ADC - Aid to Dependent Children, Maternal and Child Welfare, public health services and the blind.
There have been some changes to Social Security over the years, but I am unable to verify a rumor that it was never supposed to be a put part of the General Fund. It has always been part of the GF for purposes of accounting.
But every time we are faced with a financial crisis due to political overspending and Federal Reserve manipulation, the fat cats in Washington (both parties behind closed doors) begin salivating over the money in Social Security, as well as significant cuts to Medicare and Medicaid. And don't think for one minute they aren't casting a hungry eye at private pensions.
Those of you who still have private pensions will be a dying breed before long if those pensions are even allowed to continue. Very few companies offer them anymore and public pensions, like police, firemen's and other civil servant pension funds, are in serious jeopardy. Keep that in mind, America's law enforcement. You are not part of the 1%. You are just the lackey's they want to use to police the rest of us. Make an intelligent choice when the time comes.
Remember when Baby Bush wanted to privitize Social Security retirement funds to become part of Wall Street Investments where it could disappear with no accountability? The average voter nixed that idea loudly and it went away - for a while. But make no mistake about it when our government is as broke as it is and slated for worse, a fund with that amount of money is like catnip to felines.
Sooner or later Congress will find some excuse or worse crisis than we are in now, to justify the robbing of Social Security and probably private pensions as well. Medicare and Medicaid will be significantly cut or eliminated too. It will be couched in patriotic terms the way turning your gold in was. But there will be no penalty for noncompliance since the government is already the administrator of the funding. You won't have an option. Doesn't it make you feel all warm and fuzzy to know that the same people who brought you the 2008 financial disaster are in charge of your Social Security, Medicaid and Medicare funds?
And don't think for one second that this government, as far in debt as we are, isn't casting a lascivious eye on the 19 trillion in private pensions. Since those pensions, for the most part, come from corporations, how long do you think they'll hold out against a government they're already in bed with?
I just heard that the average Social Security recipient was due to get a COLA - Cost of living raise this year. The smallest on record, 1.5%. I think I'll go schedule my European vacation now.

1 comment:

Newswire and Press Release said...

i think social security is secure.