EASY SOCIAL SECURITY FIX

[mandm84]

https://www.marketwatch.com/story/dont-believe-this-myth-about-social-security-2019-04-23?siteid=yho...

[RitchieH510373]

Social Security is not going bankrupt. Here's a good article that gives the reasons why: 

https://optimizesocialsecurity.org/blog/is-social-security-going-bankrupt

[retiredtraveler]

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@RitchieH510373 wrote:

Social Security is not going bankrupt. Here's a good article that gives the reasons why: 

https://optimizesocialsecurity.org/blog/is-social-security-going-bankrupt

From your article:

"...We believe that just as in 1983, lawmakers will implement a combination of changes to close the Social Security funding gap between now and 2035. The alternative is an immediate and significant cut to benefits (about 25% cut) to a large contingent of Americans who receive Social Security benefits when the trust accounts run out. As 62.9 million Americans received benefits in 2018 and this number would be expected to grow by 2035, they would not be a happy bunch and would surely make their feelings known at the ballot box and vote for whoever promises to restore their benefits....".

Obviously you have a positive belief in our congress doing the right thing. I do not share that. I'm not in the 'we believe' fantasy group.

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[RitchieH510373]

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@retiredtraveler wrote:

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@RitchieH510373 wrote:

Social Security is not going bankrupt. Here's a good article that gives the reasons why: 

https://optimizesocialsecurity.org/blog/is-social-security-going-bankrupt

From your article:

"...We believe that just as in 1983, lawmakers will implement a combination of changes to close the Social Security funding gap between now and 2035. The alternative is an immediate and significant cut to benefits (about 25% cut) to a large contingent of Americans who receive Social Security benefits when the trust accounts run out. As 62.9 million Americans received benefits in 2018 and this number would be expected to grow by 2035, they would not be a happy bunch and would surely make their feelings known at the ballot box and vote for whoever promises to restore their benefits....".

Obviously you have a positive belief in our congress doing the right thing. I do not share that. I'm not in the 'we believe' fantasy group.

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I understand your lack of confidence in Congress. It is a natural thought given what is going on these days.

Though no one can know with certainty what will happen, the higher probability outcome is that something will be done because too many people would be immediately and substantially affected in a very obvious way. The article says currently 63 million Americans receive benefits (the number would be more in 2035) and there are also families relying on those benefits, making the number of people impacted even more. A 25% reduction in Social Security payments for people who rely predominantly on these benefits would be immediately felt and would have ripple effects across the economy as this money wouldn't get spent into the economy. This would be much, much, much worse than the government shutdowns we have seen recently (only about 3 million federal civil servants and not all were affected by the shutdowns) and those eventually got resolved within a few weeks. On top of that, the changes necessary are not that difficult to implement. It can be structured in a way that disproportionately affects younger people (not many millenials are going to march in the streets for benefits they don't really know much about and that they won't receive for many decades) and/or spreads the impact over many years.

When it comes to people receiving these benefits, this is a non-partisan issue. I'm pretty sure 99% of people who get their Social Security cut immediately and substantially would be unhappy regardless of whether they are Democrats or Republicans.

Most of the stuff Congress drags its feet on hurts only small subsections of the population and doesn't have the immediate and substantal effects that a Social Security cut would have.

Of course I could be wrong, but in that case there's not really much you can do about it anyway. Taking Social Security early before the "money runs out" guarantees you reduced benefits. Any cuts that get automatically enacted would further reduce your benefits. Even if Social Security "runs out of money", they can still make payments based on money currently coming in (that's why benefits wouldn't be cut completely, just by 25%). The program just won't have reserves to rely on.

Some of the people trying to sell the doomsday scenario have other things to sell you, like silver and gold. They make money by charging you a spread when you buy and sell their coins and bars and they have no problems accepting what they deem as "worthless fiat currency"...

[retiredtraveler]

'.....But if that happens, Social Security benefits won’t disappear. If Congress does nothing to fix the program, Social Security will rely on the taxes coming in and Americans will just get less of a benefit....".

Fine. I feel much better about this subject now. I have every confidence in our congress to fix SS.

[GailL1]

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@retiredtraveler wrote:

'.....But if that happens, Social Security benefits won’t disappear. If Congress does nothing to fix the program, Social Security will rely on the taxes coming in and Americans will just get less of a benefit....".

Fine. I feel much better about this subject now. I have every confidence in our congress to fix SS.

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Do I detect a bit of sarcasm here ????

Congress to FIX something ???

[retiredtraveler]

"....Do I detect a bit of sarcasm here ???? Congress to FIX something ???...".

Yup.