Social Security has been part of our culture since its introduction as a “Trust Fund” by President FDR in 1935, as a way of protecting the financial status of retired workers after age 65 with retirement benefits and has become a “social” program attempting to circumvent disasters of future economic depressions.
Brief Synopsis of The Social Security Act:
- The original Social Security Act created retirement benefits only for the retired worker, who became eligible at age 65
- In 1939, Congress passed amendments to extend benefits to spouses and minor children of retired and deceased workers
- Disability insurance arrived in 1954, which included the families of disabled workers
- In 1972, Congress passed legislation to create an annual cost-of-living (COLA) adjustment. Prior to that time, benefit increases were subject to the whims of Congress and happened only intermittently https://www.forbes.com/sites/dianeomdahl/2022/11/22/heres-what-youll-pay-for-medicare-in-2023/?sh=67f1f15b52cf
- The 1975 Social Security Trustee’s report estimated that the survivors’ benefits, and Disability Insurance Trust Funds would be depleted by 1979
- In 1977, Congress enacted amendments to deal with the impending financial problems by increasing the payroll tax, increasing the amount of income eligible for the payroll tax, and reducing benefits.
- By the early 1980’s it became obvious that the Social Security Trust Fund would not be sustainable to supply the retirement benefits it promised.
Social Security (SS) in the United States was meant to be “pay-as-you-go”, meaning each generation of current workers pays for the benefits of the current retirees. However, SS has become a Ponzi Scheme, since the SS Trust Fund is now accessible to the Federal General Fund, making present retirement benefits contingent on future workers deposits.
Parts of the following are not my words but is a reporting of the “Historical Lessons on Your Social Security Card” that have been published, explaining the eventual demise of Social Security (SS).
Something to Ponder:
Original Social Security Cards up until the 1980s expressly stated the SS number on the card. This number was never intended to be used for identification purposes. However, since nearly everyone in the United States has a number, it became convenient to use it anyway and the message, “NOT FOR IDENTIFICATION” was removed.
In 1935, Franklin Roosevelt, a Democrat, introduced the Social Security (FICA) Program, where he promised:
1) That participation in the Program would be completely voluntary.
No longer Voluntary
2) That the participants would only have to pay 1% of the first $1,400 of their annual incomes into the Program.
Now 7.65% on the first $90,000
3) That the money the participants elected to put into the Program would be deductible from their income for tax purposes each year.
No longer tax deductible
4) That the money the participants put in went to the Independent ‘Trust Fund’ rather than into the General Operating Fund, and therefore, would only be used to fund the Social Security Retirement Program, and no other Government program.
Under Lyndon Johnson, a democrat, the money was moved to The General Fund and spent
5) That the annuity payments to the retirees would never be taxed as income.
Under Clinton & Gore, democrats, up to 85% of your Social Security can be taxed
You may be interested in the following:
Q: Which Political Party took Social Security from the Independent ‘Trust Fund’ and put it into the General Fund so that Congress could spend it?
A: It was Lyndon Johnson and the Democratically controlled House and Senate.
Q: Which Political Party eliminated the income tax deduction for Social Security (FICA) withholding?
A: The Democratic Party.
Q: Which Political Party started taxing Social Security annuities?
A: The Democratic Party with Al Gore casting the ‘tie-breaking’ deciding vote as President of the Senate, while he was Vice President.
Q: Which Political Party decided to start giving annuity payments to immigrants?
A: Jimmy Carter and the Democratic Party. Immigrants moved into this country, and at age 65, began to receive Social Security payments. The Democratic Party gave these payments to them, even though they never paid a dime into it.
After violating the original contract (FICA), the Democrats turn around and tell you that the Republicans want to take your Social Security away. The worst part about it is uninformed citizens believe it.
Recipients of Social Security benefits today are not just retirees, they are disabled workers, spouses and young children of deceased or disabled workers, and the spouses and survivors of retirees.
The size of the Social Security Trust Fund for retirement and survivors’ benefits peaked in 2011 and is now in decline, since there are more benefits being paid out than there are participants putting in.
Alan Greenspan, former chair of the Federal Reserve decided to raise the retirement age from 65 to 67, while increasing the SS tax rates on the wealthy. This move would not solve the problem but would create a short-term surplus for the next few decades in anticipation of the inevitable drain from the coming baby boomer retirement. The combined employee / employer tax rate is 12.4%, requiring the employer to match the workers contribution, adding additional revenue to the General Fund without employer benefits. Wow, what a deal !!!
In 2000, there were 4 workers contributing toward SS retired beneficiary. By 2014 the number was 3.5 and by 2015 the number of contributing workers had fallen to 2.6. The SS Trustee’s Report predicts the Social Security trust fund is currently expected to be depleted by 2034. https://www.cnbc.com/2021/08/31/social-security-trust-funds-set-to-be-depleted-sooner-than-expected.html It is a realistic possibility that future retirees will have contributed into the SS system their entire working life, yet not receive any of their promised “Trust Fund” retirement money, but will receive “Federal Reserve Notes”, Fiat money printed and backed “With the Full Faith of the US Government”
You really hit the spot with this one Sal. I hope you don’t mind but I will forward it to some friends
absolutely…. the information is there for you to share