My question that I cant seem to understand is how is SS an entitlement ?? People paid into the system for years and are now getting that money back? How is that entitlement? If people never paid into the system in a form of a tax every paycheck for 40 years, I would agree. But to me it seems that old people are getting screwed.
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Oh man you just poked the bear. The basic concept is that it's not a "dollar in, dollar out" system. It's possible to never pay in a dime and yet still be entitled to receive social security payments. You pay in your FICA tax depending on how much you make, and then when you're old enough, you receive the fixed benefit, which doesn't correlate to the amount you paid in over your life. Not to mention that it's not as though social security takes the money you pay in an ear marks it for you - as soon as you pay it in, those funds are paid out to the folks currently on the dole - those receiving the entitlement.
This is the fundamental flaw in social security - it's a shared fund, not an individual account. So since there are more people collecting benefits (old people) than folks that are actively paying into the fund (young people), the fund is on the way toward being empty. This distinction is at the heart of social security reform - changing from an unsustainable shared system to a more capitalist and sustainable system based on individual accounts.
Of course all the lefties freak out and bitch and moan, because that might actually be fair and sustainable.
Also, your point about "old people getting screwed" is ludicrous. It's the YOUNG PEOPLE getting screwed as we pay into the system for our whole lives to support the old folks currently receiving benefits and draining the coffers. When it comes time for us to collect benefits, there's going to be nothing left, even though we've paid in for our entire lives. That's pretty much the definition of getting screwed.
Capt, you beat me to the punch and hit everything on point. Well said brother.
Agreed.
Regards
My point on old people being screwed is if we were to take it away now.. They paid in to it and then would receive nothing. The only people who wouldnt have paid into it are the losers who collect from the government.... Largely (white trash and dark people) .... Still not seeing how an entitlement when you paid into it... It would be like me paying for a new car every year for 40 years and then never getting it. I am not entitled to the car. I paid for the car... I completly agree young people are screwed. However, SS is not going to be bearan bc of old people but because we took money from it to pay for wars and other stupid things politicians do.... Regardless of party.
this is such an oversimplified analysis. It would more accurately be like saying everyone paid a variable amount between 15k and 80k over the course of their careers and when they turn 65 they get a beamer 7 series. Your only entitled to the car if you paid the actual amount the car is worth. Since social security is spewing money down the drain, its quiet clear that not everyone paid for what they're getting.
SS IS going bearan bc of old people. Our deficit problem might be compounded because of "wars and other stupid things politicians do", but one of the stupid things is social security.
SS will never ever be touched for any one currently over the age of 55.
Old people vote, write letters, call congressmen, actually show up to town hall meetings, and bitch to their elected officials. There is no way in hell a polititian could survive by even mentioning cutting benefits from old people currently receiving them.
The current debate going on is how to reform SS for those under 55 or 50 or even 45. Whenever some DNC person gets on TV and tells you the GOP wants to shot grandma and then steal her SS check it is complete BS. SS and Medicare benefits for the elderly are the ultimate sacred cows in Washington and they will never be touched.
SS is not going bearen bc of old people...There never was any money in SS to begin with because it was used on other things.
CaptK - . The amount you pay in is directly correlated to the benefit you recieve, meaning the more you pay the more your benefit will be once you hit a certain age (depending on when you were born). Additionally, FICA taxes are capped at $106,800 (in 2011). Meaning whether you make $110,000 or $1,000,000 you're paying the same. (self-employed 10.4% of $106,800 or an employee 4.2% of $106,800 and employer pays 6.4%).
Additionally, if you earn more there is an added benefit in the fact that your wife may receive up to 50% of your benefit (100% when you die) assuming you have been married for 10 years even if she never worked.
I am not defending SS, just providing some facts.
Chicago, that is exactly what I mean.. It is not an entitlement.. You pay for it..... Unemployment benefits are another thing as they give the incentive to people to not work and be unproductive but SS is not an entitlement.
SS is an entitlement, where in the Constitution does it say that the government must provide for old people? Since it is not stated there it was created by congress and there for is an entitlement. It does not matter that people paid into it, the fact that people feel they are "entitled" to this money makes it an entitlement as well.
What is truely ironic is that the government hammers private sector people when they run a ponzi scheme, yet the largest single thing in the United States is a ponzi scheme.
I think what OP means by entitlement is a transfer of wealth from one party to another (e.g. foodstamps). If SS money was kept in segregated bank accounts, where each individual put money into their own vault and cashed out when they hit 65, it wouldn't be an entitlement.
Agree with CaptK. It was broken from the start. Google "Ida May Fuller"
SS is just a large Ponzi scheme.
How about you learn what you're talking about before asking a stupid question
It's "barren" not "bearen". jesus.
"What is truely ironic is that the government hammers private sector people when they run a ponzi scheme, yet the largest single thing in the United States is a ponzi scheme."
Yup.
not everyone paid into it for 40 years, the paychecks you get aren't related to what you paid into it.
A beach whale whos too fat to work never pays into the system but gets the same amount as someone who earns more than the max. SS salary.
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