Tuesday, August 14, 2012

Social Security Truth

This image was taken from the "Real Truth Now" Facebook page.

Social Security was never intended to replace retirement savings. It was to supplement individual savings as a "safety net." It was never designed as a stand alone retirement account.[1][2] Over the years, however, more people began to depend on it, and nothing else, and now have to adjust to a lower standard of living in their waning years.

Those who have paid into SS are indeed "entitled" to what they've put in. However, the government sold the public this bill of goods many years ago with the promise that people would get out much more than they put in... and guaranteed that. The problem is that more and more started taking out without putting in, and the government started borrowing on the cash assets to fund other programs (which is essentially illegal).

Futhermore, Social Security is most certainly going broke... it's headed to insolvency (where outgo is higher than income... that's called broke):
"But, in 2033, incoming revenues and trust fund resources will be insufficient to maintain the payment of full benefits. After that time, dedicated funds will be sufficient to cover about three-quarters of full benefits." (Timothy Geithner, Sec. of the Treasury [and tax cheat], in a PBS interview.)
© Jeff Stahler

It's important to use real facts when talking about things like this. "Real Truth Now" is a facebook group/page that rarely cites credible sources for their "real truth" data. A rule of thumb on this is that if the hyperlink/source contains the word "blog" in it, and there are no citations within the post, then it's conjecture, opinion and twisted "facts" at best.

1. http://voices.yahoo.com/the-beginning-social-security-its-purpose-2689264.html?cat=9

2. http://www.ssa.gov/history/genrev.html

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