The Third Rail - Social Security

Why does it need to be addressed? Everyone fretting about SS has an agenda it seems (and its not strengthening it). Their only ideas are to reduce benefits, or turn it into a means tested program, which will basically stick a knife in it (there's a reason its a third rail and untouchable, because its universal!). Look how easy it is to mess around with food stamps and other means tested programs. I've been hearing for like 30 years now how SS is ponzi scheme that will collapse at any minute, a bunch of people crying wolf.

 

Ultimately, like everything in this stupid country, it wont be addressed until there actually is a crisis. In my view the crisis (if it comes) is more likely to be intentionally self-inflicted than any inherent flaw in the idea of SS.

 

I dont think there is a crisis, but if one were to occur, that's basically when it would get addressed in our political system. Our system of government is barely equipped to pass a budget YTY, and routinely uses the threat of government shutdown to simply pass continuing resolutions to keep the lights on and checks printed. What makes you think its equipped to do thoughtful tweaks to one of the best functioning government programs devised? Like half of the government and judiciary are straight up arsonists as it stands. Why do we continually have these debates about what we should do assuming we have a functional government capable of doing these things. All we can do is pass military budgets basically unless someone has a functional supermajority.

 

Before changing the system, which I am not against for future participants, congress needs to return the massive amounts of borrowed SS money first. Only then can one determine the true degree of success of the program and mitigate deficiencies.

 

I agree on both counts. It’s a thorny issue, but it is one which could be resolved were compromise still possible in the halls of power. Unfortunately, the players are entrenched and yelling at one another.

 

Seems sensible but I will add one more thing. Actually invest the largess. No increase in benefits with the temporary surplus. Invest the money in an s and p 500 or Russell 2k type of plan.

 

Raise the retirement age to 90. Problem solved. K I D D I N G

 

Here's the thing ... anything anyone proposes here is just as realistic as the next. Lower the age to 15? Just as likely as anything else anyone comes up with here. My advice, invest in the lottery, better chances of you winning that than any major move on social security happening anytime soon.

 

According to our Treasury Secretary, Biden has no plan for SS.
But he does have principles...they've just been absent for 3 years.

 

Where is he keeping the principals? Shouldnt they be in a school somewhere?

 

They all left after his COVID policies.

 

Always gets lost that folks pay in for decades….

Now SSI and other sub systems. Remember the 60 minutes piece on all the scamming organized crime with Lawyers and Doctors on SSI (in broad daylight) grift. comment on what people’s thoughts will be after seeing this piece “half will be furious and half will go sign up.

 

Republicans are throwing around a lot of dumb ideas but I would support raising the retirement age and trimming benefits of highest earners which I think is what they are supporting. Or I would support what you are suggesting. Or a combination. At this point I’d support just about anything.

The problem is nowadays there is no such things as compromise. Compromise is viewed as losing and weakness. In 1983 the greenspan commission undertook a series benefit cuts and tax increases to keep the system solvent and it worked for 50 years. Reagan signed it into law in spite of it having significant payroll tax increases. What we need is something similar.

 

It is simple math. If nothing changes, around 2033 social security will have to cut benefits around 20-25%. That is a fact. The funding mechanism runs out and revenues will only be about 80% of costs.

So the choices are cut expenses, which is what happens if we do nothing, increase revenues, a combination of the two, or to change the law to allow social security to borrow against the general fund (increase deficits even more).

 

All that does is screw your kids/grandkids/great grandkids and their peers. Why should they pay so much more in than you? To not even solve the problem!

 

What do you suggest?

 

While I cannot completely speak for him based on some of his other posts my guess is that he probably wants to ditch Social Security in its entirety and replace it with a private pension system maybe with subsidies.