Rand Paul being stupid

[crparrothead]

Fun (or frustrating) fact.

The person with the very first SS number paid into the system for 42 years and never drew a penny.

[mcarley]

@brobbs

How is that, exactly?

When social security was first enacted, it was deliberately designed in such a way that LOTS of people would never use it, because they were likely to die before they would be eligible beneficiaries.

It was not elderly welfare; it was an insurance program (even if a shitty one).

Today, the average life expectancy is well over a decade beyond the retirement eligible age (vs 5 years at the program’s beginning).

Getting back to Parrot’s complaint–his argument is that it’s just kicking the problem down the road, but that’s only true if the ratio of workers to retirees will continue to decline. The problem being addressed in 1983 was that life expectancy had increased and the baby boomers were a huge generation. Now, there are only 3 workers per retiree. If that ratio is to keep declining, the Parrot is right. But life expectancy has maxed out and even declined. It’s not clear at all that small changes won’t fix the problem.

[crparrothead]

@mcarley

It’s not clear at all that small changes won’t fix the problem.

Major changes haven’t fixed the problem in the last 100 years, there is no reason to believe any new changes will fix it;

[H200h]

When I received my first paycheck in the Navy at 17 years of age, I noticed the withholding for Social Security and asked my executive officer about it. After explaining it to me I told him “that will never work!” Turns out I was wrong (at least up to now.)

I’ve been on SS for 16 years, Now I don’t see any problem with it.

[crparrothead]

@H200h

I’ve been on SS for 16 years, I don’t see any problem with it.

Good for you, and I truly mean that, you worked your whole life and deserve it.

But I am set to start collecting at the exact same time as it goes broke, so I would prefer to actually get what I have I coming.

[H200h]

@Bears54

I’ve been watching a lot of retirement videos on YouTube lately and it’s pretty scary how so many people haven’t planned for their own retirement.

They’re too busy enjoying their new $60,000 pickup truck, no time to think about making that extra payment on their house mortgage.

When I was selling real estate I was amazed that way over half of the people buying their retirement homes were getting mortgages.

[Bears54]

@mcarley

…It’s not clear at all that small changes won’t fix the problem.

They could end or greatly reduce the COLA, increase the retirement age for those under 40 and make other changes that will help keep it going.

[mcarley]

@Bears54

They could end or greatly reduce the COLA, increase the retirement age for those under 40 and make other changes that will help keep it going.

I doubt the cola part is on the table, though they’ve sometimes discussed using a different calculation.

[Bears54]

@mcarley

I doubt the cola part is on the table, though they’ve sometimes discussed using a different calculation.

It was added in the 1970’s, they should start reducing it every year and eliminate it all together.

[mcarley]

@Bears54

It was added in the 1970’s, they should start reducing it every year and eliminate it all together.

With even modest inflation, that would leave lots of seniors into poverty.

[crparrothead]

My suggestion is the system is revised to mirror what mcarley has.

[mcarley]

@crparrothead

My suggestion is the system is revised to mirror what mcarley has.

You still haven’t come up with where the trillions would come from to fund the retirees who haven’t paid into it.

[crparrothead]

@mcarley

You still haven’t come up with where the trillions would come from to fund the retirees who haven’t paid into it.

Isn’t that what the Trust Fund is for?

[Bears54]

@mcarley

With even modest inflation, that would leave lots of seniors into poverty.

Social security wasn’t meant to be a deluxe retirement plan, it’s to keep people who planned poorly from dying in the streets.

People who are low income will probably have to work until age 70 to get the higher monthly payment or work part-time in retirement, a lot of people do that.

[mcarley]

@crparrothead

Isn’t that what the Trust Fund is for?

If people stop paying into it, there isn’t much of a trust fund. It’s gone almost immediately.

[jimtoo]

@brobbs

Parting thought, I hope FDR is roasting in mythical hell for creating this program. He committed the federal government to promises it could not keep, and now we have this huge, unsolvable mess.

Despite growing up with parents who were, at least for a time, FDR Democrats, I am not a big of FDR. The initial idea for a social security program came from Huey Long. It was one of Long’s populist federal welfare programs and lifted by FDR when it appeared that Long was going to run against him (before Long was assassinated).

As originally written, the program may have been manageable. But during the 50s and 60s, payouts were increased, FICA tax rates grew, paying out at 62 was added, non-participant spousal benefits were added, COLA was added in 1975, wage tax limits continued to grown and the program just kept getting bigger. I think there was a chance to make major changes prospectively in 1983, but it was just made bigger and more expensive.

As parrot has said, the feds kicked the can down the road. Politically, we seem to be unable to address it. Instead, we seem to be saddled with a very expensive program that is based on old economic conditions, old demographics and old law that needs to be totally replaced or prospectively eliminated.

[crparrothead]

@mcarley

there isn’t much of a trust fund.

Fun (or frustrating) fact. There is no Trust Fund now!!

I was being a smart ass.

My second suggestion is to take SS back to the original law 2% of income and income cap of $68,000

[mcarley]

@jimtoo

Despite growing up with parents who were, at least for a time, FDR Democrats, I am not a big of FDR. The initial idea for a social security program came from Huey Long. It was one of Long’s populist federal welfare programs and lifted by FDR when it appeared that Long was going to run against him (before Long was assassinated).

As originally written, the program may have been manageable. But during the 50s and 60s, payouts were increased, FICA tax rates grew, paying out at 62 was added, non-participant spousal benefits were added, COLA was added in 1975, wage tax limits continued to grown and the program just kept getting bigger. I think there was a chance to make major changes prospectively in 1983, but it was just made bigger and more expensive.

As parrot has said, the feds kicked the can down the road. Politically, we seem to be unable to address it. Instead, we seem to be saddled with a very expensive program that is based on old economic conditions, old demographics and old law that needs to be totally replaced or prospectively eliminated.

Not to take us off topic, but I just learned something recently. My kid gets SS benefits from his mom. They’ve been going into my account, direct depoosit, since she passed and I put the $ into his college fund. But, he’s turning 18, so he still gets the $ until he graduates from hs, but now they go directly to him, not me. Not huge $, but a change in plans.

[crparrothead]

To be fair to Paul.

this makes sense

[Wintermute]

The age shouldn’t be raised. Truthfully, the age should be lowered. We want people to retire to allow the younger generation to build their careers.