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There are several possibilities. One of them is removing the cap on SS contributions. Since the employment base is smaller because of automation, one suggestion is to tax automation. Most recently, they broadened the tax base for Medicare by adding a surcharge to the capital gains tax. That happened just a couple years ago.
Yes, the government built up substantial debt over the past few decades, but if they start welshing on the debt it will bring down the whole USA, not just old people. I'm sure that when Ronald Reagan indexed SS benefits to the inflation rate, he never imagined a time when wages would not keep up with, and drive, inflation. The average monthly benefit is now about $1200, and part of that goes to pay Medicare premiums. No, old folks do not get "free" Medicare. Many people actually see their monthly check drop because premiums steadily rise.
Right now the Fed is printing over $1 trillion a year in funny money, monetizing the deficit. So far, the world is going along with this, because nobody actually plans on ever spending that money. Over half of it goes to fund our trade deficit, and ends up in sovereign wealth funds, the rest of it ends up in Wall Street basements. Eventually, tax rates are going to have to double or triple, whenever the Ponzi scheme collapses. SS is not the problem.
How about means testing and cutting the benefits of those who have other means of support? I am not a fan of this one and would rather see across the board cuts in SS payments, but wonder which of those two you'd prefer, means testing or across the board cuts.
How about parents who don't have enough savings for retirement, bleeding their children dry? Welcome to my world. Every month, it is something, that my Mother ABSOLUTELY needs $500 or more for some dire emergency...this is on top of me paying for her cell phone. Some car repair, or medical bill, or the latest one...a new heat pump/AC for the house. She exists on her small pension, that is it. No savings. No plan for major expenses that come up. Except for me, I guess that is her plan...
In some cases that may be the case, but in a macro sense it's just the opposite: retirees are bleeding the rest of us dry.
Social security and Medicare payments are bankrupting this country, and retirees are receiving payments from pension plans that are frozen to active workers, or will need the support of taxpayers to continue the payments they make now. Very few retirees ever saved enough to actually live on after retirement, so the rest of us have to carry their weight.
And to top it off, few will admit this is the case, and even fewer feel at all bad about saddling their grandchildren with debt that can never be repaid.
Thats half true.
- Social security is in theory partly funded, but the government has been stealing money from it, hence its not funded at all.
- Medicare is not fully funded because it expected a much lower increase in cost
- Various state pension plans and company plans are not funded either
Quote:
Originally Posted by Ghostly1
Suck it up and make your own way in life and if/when Medicare and Social Security are there for you when you're along in years I hope you feel really stupid!
Haha, yeah right. The people in our generations are not going to recieve anything similar what your generation recieves. Once the government run out of money, these programs will be cut heavily.
Smart youth today save up money and invest it, because the government pension programs are not going to be the same when we get old.
How about means testing and cutting the benefits of those who have other means of support? I am not a fan of this one and would rather see across the board cuts in SS payments, but wonder which of those two you'd prefer, means testing or across the board cuts.
We already have means testing, in the form of taxation of SS benefits if your income rises above minimal levels.
How about parents who don't have enough savings for retirement, bleeding their children dry? Welcome to my world. Every month, it is something, that my Mother ABSOLUTELY needs $500 or more for some dire emergency...this is on top of me paying for her cell phone. Some car repair, or medical bill, or the latest one...a new heat pump/AC for the house. She exists on her small pension, that is it. No savings. No plan for major expenses that come up. Except for me, I guess that is her plan...
That could very well be. Depending on your mother's age, she may have seen her parents take care of her grandparents and she her parents. That's the way it used to be.
That could very well be. Depending on your mother's age, she may have seen her parents take care of her grandparents and she her parents. That's the way it used to be.
Right, those parents moved in with their children. This entitlement generation seems to think they can have their cake and eat it too. Live in their own home, have their own car, even if they can't afford it. She has no desire to live with me, just as long as I pay the bills.
Haha, yeah right. The people in our generations are not going to recieve anything similar what your generation recieves. Once the government run out of money, these programs will be cut heavily.
Smart youth today save up money and invest it, because the government pension programs are not going to be the same when we get old.
So we've come full circle and are right back to pension envy. But we do agree on saving, investing and being responsible for your own future. You might be surprised to know how many of us old farts did that as well since SS was never expected to be an adequate retirement vehicle, nor is it.
Right, those parents moved in with their children. This entitlement generation seems to think they can have their cake and eat it too. Live in their own home, have their own car, even if they can't afford it. She has no desire to live with me, just as long as I pay the bills.
Jasper, thank you for sharing your story with us. You are a blessing, but you know...it doesn't seem right, does it? It doesn't seem like you should have to maintain her home and the bills, while you're taking care of your own. Aren't there any senior-help organizations that can help? You're amazing.
Right, those parents moved in with their children. This entitlement generation seems to think they can have their cake and eat it too. Live in their own home, have their own car, even if they can't afford it. She has no desire to live with me, just as long as I pay the bills.
I know of several children in your situation.
However, in nearly every one I know of, the elderly parent has signed ownership of the house over to the kid so thus the kid is not doing everything for their mother for free.
If your mother has not already done that, why not ?
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