Social Security
A bit of history, and my thoughts on the subject......
The Social Security Act was proposed by Franklin D. Roosevelt and passed by Congress in 1935. The intent was for working people to pay into the fund and at retirement have a "nest egg". No one — whether they are a citizen, immigrant, or illegalalien — is eligible to collect Social Security benefits unless he (or someone else, such as a parent or spouse) has paid into the system.
The Social Security Trust Fund was established in 1939 to receive monies collected for Social Security through payroll taxes. The monies in this fund are managed by the Department of the Treasury. However, it is difficult to say whether the Social Security Trust Fund can truly be called "independent".
The Social Security Act specifically states that the monies in the fund may only "be invested in securities backed by the full faith and credit of the Federal government," i.e. treasury bills, treasury notes, and treasury bonds, as well as special issue bonds. So, basically, the government can "invest" Social Security funds by lending them to itself, then spend that money on programs not related to Social Security (such as defense, foreign aid, education). The government "pays back" this money when the Social Security program redeems the bonds, but critics of the program say Social Security will eventually fall into deficit by 2018. As the Social Security and Medicare Trustees themselves noted in their 2005 annual report, the Treasury won't have the necessary cash on hand to redeem the bonds and pay back the fund.
We all know that there needs to be better management and oversight of the Social Security Trust Fund. It should start with common sense, which seems to be lacking today. Here are a few things that I see as a start:
1. We need to encourage the creation of good paying jobs to put more people to work. More working people means more money being paid into the Social Security system.
2. Better oversight on the "investment" of these funds. Stop "loans" to the government that they have no way of paying back. If the money is properly invested and used only for the purpose it was intended, then the Social Security Trust Fund should not go into deficit.
3. Get tough on those who are stealing money from the Medicare program. We need to ensure that money is not paid out without ensuring the service was provided. All Medicare recipients should have to verify they received the medical service before money is paid out for it. And they should not have a service unless it is necessary and recommended by their physician.
4. Social Security Disability - I do believe that someone who is disabled should be able to receive benefits. However, this program also needs better oversight. If someone is able to do some form of work we should train them to do it, and perhaps only end up paying out partial disability payments. The majority of people prefer to feel productive.
I'm sure there are many good solutions that will maintain the solvency of the Social Security Trust Fund, and the original intent of the Social Security Act. No matter what is done, any step to keep the Trust secure is a step in the right direction. Personally, I don't think telling senior citizens that they do not get a minimal cost of living increase is acceptable when the cost of living is increasing almost daily.
The Social Security Act was proposed by Franklin D. Roosevelt and passed by Congress in 1935. The intent was for working people to pay into the fund and at retirement have a "nest egg". No one — whether they are a citizen, immigrant, or illegal
The Social Security Trust Fund was established in 1939 to receive monies collected for Social Security through payroll taxes. The monies in this fund are managed by the Department of the Treasury. However, it is difficult to say whether the Social Security Trust Fund can truly be called "independent".
The Social Security Act specifically states that the monies in the fund may only "be invested in securities backed by the full faith and credit of the Federal government," i.e. treasury bills, treasury notes, and treasury bonds, as well as special issue bonds. So, basically, the government can "invest" Social Security funds by lending them to itself, then spend that money on programs not related to Social Security (such as defense, foreign aid, education). The government "pays back" this money when the Social Security program redeems the bonds, but critics of the program say Social Security will eventually fall into deficit by 2018. As the Social Security and Medicare Trustees themselves noted in their 2005 annual report, the Treasury won't have the necessary cash on hand to redeem the bonds and pay back the fund.
We all know that there needs to be better management and oversight of the Social Security Trust Fund. It should start with common sense, which seems to be lacking today. Here are a few things that I see as a start:
1. We need to encourage the creation of good paying jobs to put more people to work. More working people means more money being paid into the Social Security system.
2. Better oversight on the "investment" of these funds. Stop "loans" to the government that they have no way of paying back. If the money is properly invested and used only for the purpose it was intended, then the Social Security Trust Fund should not go into deficit.
3. Get tough on those who are stealing money from the Medicare program. We need to ensure that money is not paid out without ensuring the service was provided. All Medicare recipients should have to verify they received the medical service before money is paid out for it. And they should not have a service unless it is necessary and recommended by their physician.
4. Social Security Disability - I do believe that someone who is disabled should be able to receive benefits. However, this program also needs better oversight. If someone is able to do some form of work we should train them to do it, and perhaps only end up paying out partial disability payments. The majority of people prefer to feel productive.
I'm sure there are many good solutions that will maintain the solvency of the Social Security Trust Fund, and the original intent of the Social Security Act. No matter what is done, any step to keep the Trust secure is a step in the right direction. Personally, I don't think telling senior citizens that they do not get a minimal cost of living increase is acceptable when the cost of living is increasing almost daily.
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