PILOT SPIN

Spin Zone => Spin Zone => Topic started by: EppyGA - White Christian Domestic Terrorist on October 23, 2021, 06:35:51 PM

Title: Social Security
Post by: EppyGA - White Christian Domestic Terrorist on October 23, 2021, 06:35:51 PM
I believe we all know that Social Security is a failing system.  Think about this, beginning in January all SS recipients will receive an increase of 5.9%. This highlights a problem with the system itself. Of course the main failing is more are retiring than there are people working today, this is certainly exasperated by the COLA increases though. One would think, at the very least, withholding should be increased in proportion to the COLA every year to at least try to keep pace. Guessing no one ever though of that.
Title: Re: Social Security
Post by: Rush on October 23, 2021, 06:44:01 PM
They’ll just print more and more Monopoly money. The social security checks will keep coming but a loaf of bread will cost $10,000.
Title: Re: Social Security
Post by: PeterNSteinmetz on October 23, 2021, 07:10:03 PM
It always was essentially a government run Ponzi scheme. Not helped by them having raided the surplus for the general budget.

Use cryptocurrencies where the supply is fixed.
Title: Re: Social Security
Post by: Jim Logajan on October 23, 2021, 07:56:38 PM
I believe we all know that Social Security is a failing system.  Think about this, beginning in January all SS recipients will receive an increase of 5.9%. This highlights a problem with the system itself. Of course the main failing is more are retiring than there are people working today, this is certainly exasperated by the COLA increases though. One would think, at the very least, withholding should be increased in proportion to the COLA every year to at least try to keep pace. Guessing no one ever though of that.

Since wages will eventually increase with inflation the SS system will take in that much more money. Likewise, SS increases the tax limit each year in responses to inflation. In 2021 the tax limit was $142,800 and it goes up to $147,000 for 2022. So benefit inflation doesn’t cut into SS as much as one might think when only considering adjustments to benefits.

Of course inflation of goods and services could increase and taxable wages not increase, but they usually both go up though not at the same time or rate.

I think it was the loss of employees paying into the system during the height of the government shut-down of many service businesses last year that moved the  date of SS insolvency forward by a year. And even in insolvency they’ll still being paying about 75 cents on each estimated benefit dollar.
Title: Re: Social Security
Post by: Jim Logajan on October 23, 2021, 08:23:53 PM
Here’s a quick history on inflation adjustments to Social Security:
https://www.aarp.org/retirement/social-security/info-2020/colas-history.html (https://www.aarp.org/retirement/social-security/info-2020/colas-history.html)

Prior to 1975 each adjustment to benefits required a separate act of congress. But in the 70s inflation was so bad that they enacted automatic inflation adjustments.

Edit to add a better more complete history of SS COLAs:
https://www.ssa.gov/history/briefhistory3.html#colas (https://www.ssa.gov/history/briefhistory3.html#colas)
Title: Re: Social Security
Post by: Rush on October 24, 2021, 03:03:54 AM
We had dinner last night with some friends of ours who are going around the country in their RV. Out west, on long stretches of lonely open country, almost all the restaurants and small businesses were closed, only the gas stations were open. They asked someone why this was, was it covid? The answer was, no, no one is afraid of the disease. Everyone is sitting home collecting unemployment, they just don’t want to work. One couple was getting $8000 a month in benefits. I imagine the issue is employees, rather than business owners, and that was just their story, but if that’s in any way true (and it is, judging from all the “now hiring” signs around here) if it’s not fixed soon the problem of funding social security or funding anything will only be exacerbated. On the other hand, unemployment benefits are taxed. But it’s funny money just chasing itself, not real productivity.