Social Security Entitlements

       

It makes me mad when I hear about Social Security benefits being lumped in with all the other entitlements.  I personally, and my past employers paid for this benefit.  If this money had been deposited in any bank drawing prime interest compounded annually, it could buy an annuity when I retired with a benefit 2 to 3 times my current Social Security benefit. 

What happened to the money?  The government “borrowed” it to finance the growth in government spending.  Of course, the government gave IOUs to the Social Security account.  What do you think those IOUs are worth?

The government hopes to pay Social Security benefits with current Social Security deposits from those people still working.  I think that is what is described as a Ponzi scheme.  Isn’t that illegal?  I think people have gone to jail for that.  I guess it doesn’t apply to the government. 

We are getting screwed with the return on our money, and all increases in benefits are based on inflation and not on the cost of living.  When living expenses increase on items seniors must buy like gas and food, these items are removed from the index determining inflation. 

Since there was no inflation, according to the government, Social Security benefits were frozen for three years in spite of a huge increase in the cost of living for seniors.  Gasoline, home heating, food, health care, and insurance all increased, but benefits stayed the same. 

This is not a new problem.  Many people have known something had to be done to save Social Security and other entitlements for years, but politicians don’t want to deal with the problem.  They would rather ignore the problem, leave it to future generations, and hope there is not a total collapse. 

President Clinton and Newt Gingrich worked on a solution, but Clinton lost his political clout over the Lewinsky incident and it never happened.   Marla and I attended a breakfast for seniors where President George W. Bush and Iowa Senator Charles Grassley presented possible solutions to reform Social Security.  Unfortunately, they were never able to sell it to Congress.  People like Congressman Paul Ryan propose reforms to entitlements and are misquoted and called extremists. 

Will there be a Social Security benefit for future generations?  Many young people do not expect it to be around when they retire.  This is sad since they are paying into the program.  All entitlements, including Social Security must be reformed if they are to survive.  What to we have to do to get our elected officials to stop the B.S. and do their job?