Schiff Speaks: End Social Security, Insured Bank Accounts and More

Accumulated assets: (4.00 / 1)

1. Partially paid for Subaru
2. Full tank of gas
3. Rapidly diminishing debit account
4. 135 pair of shoes (men just don't understand)

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by: Sue @ Mon Nov 30, 2009 at 14:54:54 PM CST

Thanks for the laugh (0.00 / 0)

I thank God every day that the shoe size of a woman doesn't usually change after they're 15 years old or so.

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by: ctkeith @ Mon Nov 30, 2009 at 19:17:36 PM CST

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Schiff doesn't have a chance, but he'll be entertaining. (0.00 / 0)

He's pro-choice, pro-gay marriage, pro-legalization of marijuana.  He probably won't be on Jim DeMint's or Fox News' holiday card list.  

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by: jeffs @ Mon Nov 30, 2009 at 17:04:17 PM CST

At least give me my money back (0.00 / 0)

My generation OVERPAID social security and it was loaned to the U.S. Government.

I assume Mr. Schiff would support property rights for corporations and the rich.  Social Security is a promise made, a property right to my generation.  In turn I would make that promise to successive generations.

My generation did not create Social Security, it was created by the "Greatest Generation" who actually reaped much more than they sowed from it.

I am in favor of Social Security, yet would be OK if a law were passed that Social Security funds could not be spent on golf. Just as long as my loans could not be used to finance wars and weapon systems.

because Connecticut voters count: http://www.CTVotersCount.org

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by: BlastFromGlast @ Mon Nov 30, 2009 at 19:23:26 PM CST

Well yes...it is a sham... (0.00 / 0)

Do I know that for sure? No. But as a 30-something, I have absolutely no faith that Social Security will be there for me or my family when it is 'due.' Sad thing is that I don't know of a single person my age who believes SS will be there for them either (anyone care to disagree?). Yet we just keep on paying while remaining mostly quiet. In fact, my current and previous financial planner agree that my family should not even include our anticipated social security in our retirement planning.

But...we can't just pull the rug out from the folks who are relying on it now or will be very soon.

So, MLN'ers, anyone care to weigh in whether they expect SS to be there for them when they decide to begin collecting and please add your age (ish).

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by: famillionaire @ Tue Dec 01, 2009 at 07:50:42 AM CST

I can't tell you how many (0.00 / 0)

Republicans I know who are today collecting their SS bemnefits that made the exact same argument 30 years ago.

Everyone here,no matter their age,will collect their SS benefits if they are lucky enough to live to the age when they are eligible for a very simple reason.People who collect SS VOTE in HUGE numbers and all politician fear them.

 

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by: ctkeith @ Tue Dec 01, 2009 at 10:22:34 AM CST

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Keith is right (0.00 / 0)

Social security isn't going away. It will be there for you. There are several relatively easy fixes that can solve the financial problems it will face in the future:

1. Increase taxes

Right now, employees pay a 6.2% Social Security tax on income up to $106,800 (the "income cap"). To generate more revenue, Congress could increase the rate at which income is taxed, raise the income cap, or add a new tax on income above $250,000.

More likely is a modest increase in either the payroll tax rate (from it's current rate of 6.2%) or the income cap (from $106,800). Raising the cap is popular among Social Security reformers but would increase the tax burden on the upper middle class, since more of their income would be subject to the tax. Raising the payroll tax rate would disproportionately affect lower-income workers and should be avoided if possible.

2. Change future benefits

Altering the way benefits are calculated could be a powerful tonic for Social Security's fiscal ailments. "Financing current benefits isn't such a big problem," says Rudolph G. Penner of the Urban Institute. "The problem is financing our promise of ever-increasing benefits."  

The system is very generous to high income earners - so some kind of cap wouldn't be terribly burdensome - maybe a few less rounds of golf.

3. Raise the retirement age

The retirement age is already rising gradually-from 65 to 67 by 2027. Proposals are circulating to accelerate the jump to 67 by 2020. Early retirement at a reduced rate is still an option. Requiring people to work or wait a little longer before collecting full Social Security isn't such a horrible idea.

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by: Jon Kantrowitz @ Tue Dec 01, 2009 at 10:58:41 AM CST

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Remove the salary cap so that Bill Gates pays into SS every day not just on Jan. 2 (0.00 / 0)

Removing the salary cap will solve almost 90% of SS's future funding problems.  The other way is to increase the number of workers to the SS tax pool.  Current unemployment rate is hurting SS.

Raising the SS retirement eligibility age is not humane, especially since people like me -- 48 years old -- were laid off last year and have little hope of finding a good paying job.  Currently, I have my old job back, thanks to the business group I once supported, but at a reduced rate.  The Systems group, which is the programmers group, wants to send my duties to India because they are cheaper, however, they are incompetent and work 10.5 hours ahead of us on the East Coast which makes meetings difficult.

To help reduce unemployment, reduce the SS retirement eligibility age to 55.  That could open up more jobs for younger and middled age people.

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by: Larkspur @ Wed Dec 02, 2009 at 08:22:50 AM CST

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The printing presses (0.00 / 0)

But if Bernanke continues running the printing presses, the currency has less buying power.  So we may all get our SS checks... but if $1200 pays nothing more than your heating bill... there's still a big problem.

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by: Tim White @ Thu Dec 03, 2009 at 06:53:25 AM CST

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There's no sign of inflation (0.00 / 0)

in the economy - and nobody in the financial world expects any in the forseeable future - which is why government bonds just sold for record low yields.

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by: Jon Kantrowitz @ Thu Dec 03, 2009 at 15:49:21 PM CST

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I can't knowledgably debate economics (0.00 / 0)

But since the discussion was happening, I thought "the printing presses" should at least be mentioned as part of the dialogue.  And with regard to Bernanke's talk of "pulling back" the bailout money (and avoiding inflation)... wasn't it March when he saw "greenshoots"?

But now I'm getting way OT...

One last note though... go Bernie Sanders!  Threatening a "hold" on Bernanke.  I think I may donate to Senator Bernie.

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by: Tim White @ Thu Dec 03, 2009 at 23:27:58 PM CST

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I Wrote That Up (0.00 / 0)

on my site.

I'm actually coming around to your way of thinking on this.

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by: Jon Kantrowitz @ Fri Dec 04, 2009 at 08:52:06 AM CST

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I always knew that someday... (0.00 / 0)

you (and perhaps even other MLNers) would realize that Bernie Sanders can make a good point sometimes.

j/k!  I read your post on Audit the Fed.  While I believe it makes a lot of sense... I also look at the fact that three anti-bailout votes (Sanders, Feingold, Demint) support the audit.

And yeah... on many issues I don't look at party affiliation.  As soon as I hear there's bipartisan support for anything related to Wall Street, I disregard party affiliation.

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by: Tim White @ Fri Dec 04, 2009 at 19:51:33 PM CST

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Keep Reading (0.00 / 0)

Let me know if you find anything else you can agree with.

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by: Jon Kantrowitz @ Sat Dec 05, 2009 at 06:05:28 AM CST

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Poignant Fact (0.00 / 0)

And one of the many reasons that our political discourse would be far, far greater when politicians utilized projections or statistics the full reports (INCLUDING detailed methodology) were made public to be checked.  I'm a numbers person, but I still dream of the day when a debate around revenues or disbursements someone just says, "you forgot to carry the zero" to a surprised "oh". Debate over...next.

End pipe dream.

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by: GrandOleVipers @ Tue Dec 01, 2009 at 11:52:27 AM CST

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