Saturday, September 10, 2011

Social Security is not a ponzi's an insurance program

Social Security is a government program that ensures each worker against death and disability.

That means all working americans and their families are benefitting from the security of the insurance protections of Social Security right now!

Only a cynic or an uninformed person would claim that if the family doesn't collect from the insurance policy because  a tragedy didn't happen , the program is a fraud!

The most publicized part of social security is the retirement annuity.
Republicans lie about Social Security not being around for those in their 20's and 30's.

The facts are:

After 2037 the trust fund will be exhausted if no changes are made. After that time, Social Security will be able pay three-fourths of its scheduled benefits using its annual tax revenue. Alarmists who claim that Social Security won’t be around when today’s young workers retire either misunderstand or misrepresent the projections.

The important part is that even with no changes.  Based on current law:

Social Security would pay 3/4 of scheduled benefits!

Remember this can be 3/4 to all recepients.  It can be 100% to the most needy, 50% to the well off, or some combination or formula.

Contrast those facts with a Ponzi scheme! Where there is a need for more and more investors to keep the scam going.  When eventually everyone gets nothing.  Social Security is a government transfer program that is  healthy, but like everything else:

Social Security is a vital program that needs updating.  This can be:

more money subject to FICA tax
different indexing of cola adjustments
raising retirement age for some/all
small benefit reductions

But the essence of it being an insurance program is sound and Americans should know that.

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