Social Security Scare Tactics?
One commentator in this video describes Social Security as a “multi-generational Ponzi scheme that has no end”.
Even if the SS trust fund runs out of money, the government can always print more money to send out Social Security checks.
The only question is, will the money still be worth something? The more money they put out there, the faster its value goes down. And once other countries (like China) recognize that the dollar is losing its value, they will stop buying the US government’s debt.
But even then Social Security doesn’t have to fail. A Ponzi scheme can last for a very long time if it’s supported by a government that can print new money as it sees fit.
The result might well be hyperinflation. In such a scenario, Social Security checks won’t increase every year, but every month. They just won’t buy a whole lot.
If we are to be angry, who should be the target of our wrath?
Mr. Neil Cavuto: Senior citizens are already upset about the direction of healthcare reform and just when you thought they couldn’t get angry, now millions of elderly face shrinking Social Security checks. Trustees who oversee the programs say that the payments will not rise for the first time in a generation. So do seniors have a right to be riled up? Tom, what do you think?
Tom: Absolutely, Neil. They definitely should be angry. There’s a couple of things to look at here. The cost of living adjustment (COLA) is pegged to inflation, which is negative this year. However, the basket that is used to calculate that adjustment is actually calculating things such as the price of DVDs, movie tickets, BluRay machines. They’re now looking at spending patterns that seniors are actually using and that is… there should be a separate basket that is used to calculate that adjustment. That just not there yet.
Mr. Neil Cavuto: But Jonathan, I mean, many of these little rules are going in, right? This is how we’re going to calculate. Now, the two-year thing might be a new deal, but by and large, we always knew we’re going to keep this attached pretty much to the CPI and with very little variation, it’s been working just fine, so what changes things now?
Jonathan: Well, I don’t know, if it’s been working so fine. I mean, Social Security accounts are 20 percent of federal budget. All the entitlements, Medicare, Medicaid, Social Security account for 75 percent of all federal spending. I think what’s….
Mr. Neil Cavuto: No, really, my point is that we knew this math was there and now when it turns up that it’s not generous enough, we want to change it.
Jonathan: Right, well, what it does is it pits one generation against the next, right? So those who paid into the system, of course, feel that they’re entitled to get what they deserve out of it. So we have this multi-generational Ponzi schemes essentially that have no end and if you’re frustrated about your Social Security being cut, just wait until the government gets ahold of your healthcare.
Mr. Neil Cavuto: Liz.
Liz: Yeah, I agree. Jonathan is absolutely right. You know, I feel like that people who really should be riled up are the babyboomers. Boomers should be having their own town halls. They’re not going to see this Social Security benefits like the seniors are getting and you know, Social Security, when it was built in the 30s, the life expectancy was 65, and that meant you’re like, you know, you wouldn’t get any pension benefit from Social Security. Now, you know, babyboomers are expected to work until they drop dead and they’ll take a load off of Social Security and won’t get their benefits and you know, what the seniors are expecting, I get it.
But Medicare too was built in the 60s when we didn’t have MRIs, PET scans, CAT scans, all sorts of cancer treatments. Now, the taxpayer is paying for all sorts of those kinds of treatments and also all sorts of advances in stem cell research and neurology and the like. I think the reality check has bounced a long time ago with this.
Mr. Neil Cavuto: Mike, what do you think?
Mike: You know, I bet Jonathan is one of those people that wanted to give Social Security to Wall Street geniuses, so they can lose 50 percent of the money within two years as soon as they got it. I can just hear it. Government doesn’t have a place, but here’s the point, all of this is about, it’s about the fact that the drug…
Mr. Neil Cavuto: By the way… by the way, Mike, you might be surprised to learn that Jonathan was against all the bailouts in the last administration’s rescue.
Mike: Well…
Mr. Neil Cavuto: He wouldn’t rescue his own grandmother. So I’m telling you. I’m telling you he’s been very consistent on this.
Mike: I’m not saying this…
Mr. Neil Cavuto: So that’s an unfair shot, but continue.
Mike: All right. All right. Well, the AAR people better be pleased that government is still in control of Social Security. Here’s the problem. Here’s what happened. The drug industry can charge people whatever they want and because of that, you have something called the Medicare Prescription Drug program. That’s the only thing that has been affected here because the drug industry is able to charge…
Liz: Mike, Mike. Let me ask you. Before…
Mike: Is able to charge the elderly $50 for two…
Liz: Yeah.
Mike: Wait, let me finish what I’m saying. They were able to charge the elderly $50 for a $2 pill and what that does is raise his premiums.
Liz: Right.
Mr. Neil Cavuto: It’s okay. Jonathan, let me ask you.
Jonathan: Right. Right, well, I mean, you want to blend the drug industry and this industry in this business.
Mike: Give it to Wall Street. Orchestrate it. Give it to Wall Street.
Jonathan: And give it to Wall Street. But let me ask you, Mike.
Mike: Yeah.
Jonathan: Are there any of these big entitlement programs that you love so much that aren’t broke? I mean, this isn’t me. This is CBL. This is an estimate all of those that or eat Medicare. Are there any that are not broke?
Mike: Yeah, I would say. What do you think of the VA? What do you think of the VA? What do you think… what do you think of VA? Do you think VA works?
Jonathan: Social Security, Medicare, Mediaid.
Liz: Mike, you know, Mike…
Mike: You know, maybe Social Security is broke is because your GOP took $1.6 trillion out of Social Security while you were saying give the program to Wall Street. Let the elderly invest the money with Wall Street.
Mr. Neil Cavuto: Right, okay.
Jonathan: I’m saying… all I’m saying is…
Liz: You know, Mike, you know, again, the history lesson, the Democrats let the Congress to get their needs on Social Security for the first time in the 60s.
Mr. Neil Cavuto: All right. All right. All right. I wish we have more time. Thank you for talking over one another. Let’s save a hell of a lot of time; otherwise, we’ll have moments of proverbial break.
Comments
One Response to “Social Security Scare Tactics?”
Leave a Reply
Settle Tax Debt Fast!
Get Foreclosure Help
Have been searching for information on how to earn pt money without being penalized by SS. This yr they took 2 full SS checks.. no money for 2 straight months! I worked pt becuase my retirement went to almost 0 and then SS takes my income.
Please teach us all how do we come ahead? SS is worse than the IRS.
thank you
sam gray
sgray01@hotmail.com