Social Security is running out of money. You may not believe that, but it's a fact. That FICA money taken from your paycheck was not saved for you in a "trust fund." Politicians misled us. They spent every penny the moment it came in.
This started as soon as they created Social Security. They assumed that FICA payments from young workers would cover the cost of sending checks to older people. After all, at the time, most Americans died before they reached 65. Now, however, people keep living longer. There just aren't enough young people to cover my Social Security checks. So Social Security is going broke. This year, the program went into the red for the first time.......
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Social Security and Fiscal Doomsday
by William Sullivan August 15, 2018
2035. That’s the optimistic date for Social Security’s impending doom, after which Social Security is expected to provide only 75-80% of expected benefits to retirees. For the record, I turn 67 (full retirement age, for me) in 2047, so I, like many Americans, have been skeptical about the program for some time.
But perhaps it’s pertinent to note that when I began following this looming doomsday in earnest, it was projected at 2038. It’s been creeping forward, with some estimates placing it as early as 2034.
But there’s an interesting thing that happens when people think about Social Security, just as that same interesting thing happens when people imagine the impending doom of municipal and state pension liabilities that are now crippling governments across the country with a roughly $5 trillion hole nationally. Somehow, Americans think, the money is there if governments are capable of properly managing the inflows from workers, capitalizing upon the underlying investments, and just delivering the outflows to beneficiaries.
Each and every of those assumptions are wrong............To Read More
Liquidating Federal Assets: A Promising Tool for Ending the U.S. Debt Crisis
But perhaps it’s pertinent to note that when I began following this looming doomsday in earnest, it was projected at 2038. It’s been creeping forward, with some estimates placing it as early as 2034.
But there’s an interesting thing that happens when people think about Social Security, just as that same interesting thing happens when people imagine the impending doom of municipal and state pension liabilities that are now crippling governments across the country with a roughly $5 trillion hole nationally. Somehow, Americans think, the money is there if governments are capable of properly managing the inflows from workers, capitalizing upon the underlying investments, and just delivering the outflows to beneficiaries.
Each and every of those assumptions are wrong............To Read More
Liquidating Federal Assets: A Promising Tool for Ending the U.S. Debt Crisis
by William F. Shughart II and Carl P. Close (Revised 4/12/17) @ Independent Institute
The national debt may be the biggest problem in decades that federal policymakers have failed to confront. Its importance is measurable not only in dollars—almost $20 trillion[1] ($61,552 per capita[2])—but also in the grave threat it poses to the American financial system and therefore to the health and well-being of private businesses and households. A default on a scheduled federal debt payment, caused by the government’s lack of funds necessary to service its debt obligations, could spark a fire sale on U.S. Treasury securities, prompt a sharp fall in the value of the dollar, and launch a rapid “flight to quality” as investors and dollar holders flee to the perceived safety of other nations’ bonds and currencies—all culminating in a U.S. financial meltdown.
This worst-case scenario is not the only concern. Even if the Treasury has overdraft protection in the form of the Federal Reserve,[3] the large debt servicing requirements exact a heavy toll on public services and economic growth.
This
My Solution?
By Rich Kozlovich
Let’s start with the cost of regulations, because they will amount to the same thing to business and the consumers, higher costs. It was estimated that it would cost the American consumer 1.75 trillion dollars to pay for the regulations imposed by the federal government. Although that number is disputed because of the way in which that figure was computed, it has to be recognized that it is high and we know it is growing. And it is the consumer that pays those costs, because as businesses costs go up prices go up. At least until the costs get so high that they go out of business because the consumer can no longer afford it.
According to Warner Todd Huston on January 16th there has been an increase of $518 Billion in Regulations Since Obama Took Office. He goes on to say that.......To Read More...
Let’s start with the cost of regulations, because they will amount to the same thing to business and the consumers, higher costs. It was estimated that it would cost the American consumer 1.75 trillion dollars to pay for the regulations imposed by the federal government. Although that number is disputed because of the way in which that figure was computed, it has to be recognized that it is high and we know it is growing. And it is the consumer that pays those costs, because as businesses costs go up prices go up. At least until the costs get so high that they go out of business because the consumer can no longer afford it.
According to Warner Todd Huston on January 16th there has been an increase of $518 Billion in Regulations Since Obama Took Office. He goes on to say that.......To Read More...
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