Anybody receiving SS now or who hopes to receive SS in the future should resist the Republicans' deceptive privatization schemes with every fiber of his/her being. In 2005 the SS budget surplus was $171.8 Billion, up from $156 Billion the year before. The SS trust fund now stands at over $2.0 trillion as a result of surpluses during the Clinton-Gore economic miracle of the 1990's and continuing to the present day.
Republican Party propoganda for privatization is based upon extremely pessimistic projections of what might happen 17, 25, or 40 years from now. Over the past 10 years or so, only the set of optimistic projections by the SS trustees have been accurate. Given the Bush administration's consistent failure to predict budget deficits accurately even 1 year in advance, no voter should place any credibility in any SS privatization scheme concocted by BushCo.
The cost of administering SS is almost exactly 1.0% of the amount paid out. Mutual funds have expenses of 0.5% to 3% per year. Add on the administrative expense of maintaining private accounts, you will understand why any privatization scheme will be MUCH MORE EXPENSIVE than our existing SS system, whether calculated on a yearly basis or on the amount of payout to SS recipients.
SS has not missed paying a check in its entire existence. Why monkey around with SS when it has a perfect record? The stock market's record is less than perfect as exemplified by the downtturns of 2001-2004, 1987, 1929-1937, ad infinitum. The only threat to SS is the Republicans' screwy rationale for converting the system into private accounts.
There was no Clinton\Gore miracle. They merely rode the horse they inherited from REAGAN, (mainly) and Bush Sr.
At least they didn't mess it up like little Bush did. If you want to point a finger, point it at the Carlyle Group. If you don't know who that is--look it up! Check out the Bd. of Dir.'s and what other Co's they are associated with.
"The SS trust fund now stands at over $2.0 trillion."
That may be a fact; however congress has looted the trust fund and all that is in there is a pile of IOUs that will have to be paid by our children & grandchildren. Unfortunately that money will be needed when there are 2 to 3 retirees for each employed person. It won't be a pretty picture.
The retirement system needs to wrestled from the grip of the govt. mismanagement.
The screwy thing about Governmental accounting is that you can have a huge Fund balance but the money has been robbed, "borrowed" by other Gov't agencies or areas for their funding. So, how much money is really there is fictional on paper. However the liability to meet the requirements still exists. To meet the obligations very well may require printing more money.
This means that meeting the social security obligation's could put an incredible strain on the economy. It could also lower the buying power of the benefits through inflation. Or, Congress could could lower the benefits, (I don't think so), while they increase their salaries.
Thank you very much loyal memebers of Congress and Presidential administration!
The general fund of Soc. Sec. should be untouchable. This is my only comment on this off topic issue. There is no humor in this.
It's people like me who will pay. The amount of people retiring in the upcoming years will be major. I don't even think about SS as I am currently operating under the perception I will get nothing. I have already taken things into my own hands.....I feel for people my age who do not.