Social Security ~ Bridge to Eternity

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Social Security ~ Bridge to Eternity

Friday, January 7th, 2005

(Updated on 1/30/05 by Grandma Bee)

The attacks on Social Security are nothing new. The Republican Party has been trying to gut it from the beginning. Their philosophy is that everyone should be self made millionaires to enjoy retirement. The Republican leadership doesn’t understand that most Americans feel blessed to have a family and home. For the most of us wealth is out of the question, but does that mean we should be punished with poverty? I don’t believe that President Bush sees the harm that he would bring to older America and I don’t think he is evil, just wrong!

“George Bush, himself, projected in 1978, when he was running for Congress, that the trust fund would be broke by 1988. His math was quite a bit off, as it is now.” The Mississippi Press

If W was wrong then, wrong about WMD, and wrong about so many other things, why should we believe that he is right now?

This is a good summation of the Social Security issue from

 

Fast facts about Social Security

UNION-TRIBUNE

January 30, 2005



History: President Franklin D. Roosevelt signed the Social Security Act into law Aug. 14, 1935.

Tax: A tax on wages pays pension benefits for retirees.

Original wage tax: 1 percent

Today: 12.4 percent – 6.2 percent from employers and 6.2 percent from employees. Income above $90,000 is not taxed.

Benefits:The first monthly benefit check – paid to Ida May Fuller of Ludlow, Vt., in January 1940 – was for $22.54.

Average monthly benefit for retired worker now: $955. Social Security also provides payments to surviving spouses, dependent children and Americans with disabilities.

Recipients today: Almost 48 million people

Trust fund:Payroll tax annual revenue usually exceeded benefit costs, so Social Security built up a $1.7 trillion surplus. The money is invested in Treasury bonds – in other words, loaned to the federal government, which pays interest.

The problem: In 1940, there were 42 workers paying taxes for every retiree drawing benefits. Today, there are 3.3 workers per retiree. By 2050, it will be about 2-to-1.

Red ink: Benefit costs will exceed annual revenue from payroll taxes starting in 2018, according to Social Security's actuaries, based on cautious economic projections. That will force Social Security to start cashing in its Treasury bonds. By 2042, the bonds will be gone, the actuaries project. At that point, payroll taxes will cover 73 percent of benefit costs. That would require benefits to be cut by $600 per month per married couple, on average.

-Knight Ridder News Service

 

Here are a few articles about the subject that are worth reading;

 

AARP: Don't mess with Social Security
Chicago Tribune (subscription) – Chicago,IL,USA
As the debate begins in Congress, the pressing question is whose support he needs will be running for re financial challenges–just not the way Bush envisions.
See all stories on this topic

Social Security plan has public anxious
Fort Wayne Journal Gazette – Fort Wayne,IN,USA
If the Social Security system is running out of heading toward bankruptcy as Bush said — how does Congress uses the surpluses Social Security generates from

Wall Street firms cautious on Social Security
Chicago Sun-Times – Chicago,IL,USA
been a curious silence on Wall Street since President Bush proposed that However Congress structures privatization, the companies running the private
See all stories on this topic

Doubts over US social security reform
Financial Times – UK
one of President George W. Bush's top priorities for in winning round the people and the Congress. personal social security accounts without running up ruinous