What are the consequences for Social Security in an economy where fewer and fewer workers have a job? Add in the tax burdens that come to comply for Obamacare coverage and it is difficult to see where all the needed new employment will come from to keep funding the government Ponzi scheme? Government apologists will just compose a new “Washington Two Step” routine to dance around empirical facts, but just maybe part of their next choreography will be to allow even more illegal’s pay into Social Security so that the transfer system can continue.
The essay, Another Government Ponzi Scheme Starts To Crack make an incontestable point.
“There are simply too many people cashing out at the top and not enough people paying in… even with the government’s coercion. That’s a function of demographics, but also the economic reality in which there are fewer people with quality jobs for the government to sink its fangs into. I expect both of those trends to increase and strain the system.
Actually, it’s already starting to happen.
Recently, the government announced that there would be no Social Security benefit increase next year. That’s only happened twice before in the past 40 years.”
You have not heard much of an outcry reaction with this announcement. The baby boom generation always knew it was paying for the “greatest generation” and that having large families themselves was simply not a responsible and moral decision in a society that was on a path of collapse. Well, as for the X, Y or Z Generations, much of their employment earning power is meager in comparison to that of the current crop of Social Security recipients.
Yet, from the voices of a government program never refused, like the blowhard Thom Hardmann writes in Demographics can fix Social Security the following:
“There were 20 million people in the Baby Boomer generation. Our children waited longer to start families, which created a period when there were fewer people paying into Social Security than those who are receiving benefits. However, there are 49 million people in Generation X and 76 million in Generation Y. If we just get through this short term problem, Social Security will again be very viable. We need a short term fix, but the numbers will work out in the long term.”
Here lies the denial of the mathematical reality of a population that is living longer and a work force that is being replaced by robots. This sinking ship cannot right itself with just a little help from government pumps to expel the bilge entering from a storm that cannot be avoided.
The entire parameters of how Social Security is funded require sound long term realignment.
Amazingly the political establishment supporters would have you trust that Social Security has already made a dramatic shift in accounting. If you actually believe that another shell game in bean counting has made the system solvent, then you probably think that there is no inflation in the economy that should trigger a SS increase for 2016.
“One of the most significant changes was to move away from the “pay-as-you-go” philosophy and begin accumulating surpluses each year into a trust fund. The fund has been growing for a number of years and now stands at about $2.8 trillion. Income into the program from Social Security taxes, income taxes on benefits and interest is estimated to total of $884 billion this year, while payments and administration are expected to total $859 billion, leading to another $25 billion into the trust fund. However, we are nearing the end of the surplus years.”
Such a premise could have been written by Rod Serling in an episode from the Twilight Zone. As with every good script, a little glimmer of truth seeps in, “By 2034, the available funds are expected to be completely exhausted. Without the trust fund, amounts coming into the program fund only about 79 percent of benefits.”
Folks, an entry in a government computer that an IOU exists for nearly three Trillion to fund banking transfer credits to the older generation is an outright fraud. Do not believe us, so maybe a pinnacle of the Central Banking cabal might have more credibility for those who accept the official pronouncements from on high.
“Alan Greenspan, former chairman of the Federal Reserve, said a Social Security Trust Fund does not exist and that the U.S. is “way underestimating” the size of its national debt.
“The notion that we have a trust fund is nonsense – that trust fund has no meaning whatsoever except for the fact as an all private fund to benefit programs, if it runs out of money, you can only pay out in cash flows that come in but the probability that will happen is not particularly high,” Greenspan recently told the Fiscal Summit held by the Peter G. Peterson Foundation, PJ Media reported.”
Now if this does not wake you up from a slumber, consider the added element of Americans on Disability Skyrocket.
“According to the SSA’s latest report, in 2013 disability payments were made to 10,228,364 people and that’s up 139,625 from 2012 when there were 10,088,739 disabled beneficiaries. The numbers are staggering and have climbed particularly high under the Obama Administration. Disabled beneficiaries have increased 49.7 percent from a decade ago when there were 6,830,714 beneficiaries. From 2009 when President Obama took office until now, that number has jumped 14.3 percent alone (up from 8,945,376 beneficiaries).”
Yep, to the all the Thom Hardmann’s in this country, that “short term problem” is nothing more than a desirable excuse to game the system even more so that the entire economy will be dependent upon a government check.
General revenues, translate to mean higher government deficit borrowing, is the future of a diminished purchasing value from Social Security benefits. With any luck, maybe SS will morph into a payment method for the next restructured SNAP food stamp program?
SARTRE is the pen name of James Hall, a reformed, former political operative. This pundit’s formal instruction in History, Philosophy and Political Science served as training for activism, on the staff of several politicians and in many campaigns. A believer in authentic Public Service, independent business interests were pursued in the private sector. As a small business owner and entrepreneur, several successful ventures expanded opportunities for customers and employees. Speculation in markets, and international business investments, allowed for extensive travel and a world view for commerce. He is retired and lives with his wife in a rural community. “Populism” best describes the approach to SARTRE’s perspective on Politics. Realities, suggest that American Values can be restored with an appreciation of “Pragmatic Anarchism.” Reforms will require an Existential approach. “Ideas Move the World,” and SARTRE’S intent is to stir the conscience of those who desire to bring back a common sense, moral and traditional value culture for America. Not seeking fame nor fortune, SARTRE’s only goal is to ask the questions that few will dare … Having refused the invites of an academic career because of the hypocrisy of elite’s, the search for TRUTH is the challenge that is made to all readers. It starts within yourself and is achieved only with your sincere desire to face Reality. So who is SARTRE? He is really an ordinary man just like you, who invites you to join in on this journey. Visit his website at http://batr.org.