For the well-being of Americans, Democrats in Congress must unite to protect and expand Social Security

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One response to “For the well-being of Americans, Democrats in Congress must unite to protect and expand Social Security”

1. 

   November 14, 2020

   BC Shelby

   …Mr. Reagan was correct in that Social Security is a self sustaining trust, one that Mr. Trump would have undermined by eliminating the source of it’ funding, the payroll deduction. Another Republican, President Eisenhower, defended Social Security as well. Today however the Republican mantra is eviscerate and/or privatise it, in the latter case, effectively tuning SS into a “401k” by tying funding to investments the government would make. So, year by year even month by month benefits could fluctuate either downwards or upwards, as they would be dependent on market swings. Sadly, the only real benefactors would be the fund managers in charge of the investments who get their percentage. 401k’s often don’t perform well and in some cases can lose value when a major investment they are tied to tanks (like what happened to Disney employees a few years ago).

   Regarding Mr. Trump’s plan, in an article I read, Steve Mnuchin outlined that Social Security funding would be moved to the nation’s general fund. A very bad idea as doing so would make the programme highly vulnerable to budget cuts, competition from other agencies (including the “War Department”), and deficit reduction measures. Without the payroll deduction and Mr. Mnuchin’s solution, the trust would run out of money by 2022 while the majority of the Boomer generation is still retiring.

   Another matter that the Dems need to be aware of is a measure authored by Mitt Romney (yeah that guy who only recently became ca critic of Mr. Trump), floating around in the Senate called the TRUST act. What this act would do is fast track cuts to Social Security, Medicare, Medicaid, and other social programmes seniors depend on (such as low income housing and SNAP/EBT) in closed door sessions (the classic “smoke filled rooms”). He already attempted to tack it in to Mr. McConnell’s pitiful relief bill (that would have done more for corporations than citizens) which surprisingly and fortunately failed in a Senate vote a few months ago.

   No, we need Dems to stand behind Mr. Biden to protect and expand Social Security. A major portion of seniors are living in poverty and that should not be. Some politicians and pundits will argue about why people don’t have savings, but for many close to retirement savings, 401k’s, and such evaporated during the previous recession that in many areas lasted through 2013, and 6-7 years was not enough time to rebuild those accounts to have any meaningful balance. Furthermore many workers are in stagnant low wage jobs that require working two even three jobs just to make it by month to month. They have little if anything left over for retirement savings so Social Security is the only retirement income they have to look forward to as in the private sector, company pensions have become a thing of the past (save for a few occupations like railroads, government, and the military).

   Living Cost Adjustments also need a different basis for calculation that more accurately reflects expenses seniors face today. The largest are housing, medications, and treatments/services that are not covered by Medicare the latter which often require expensive supplemental plans (in addition to the Medicare Premium). Even the “generous” 2.8% adjustment we received in 2019 wasn’t enough. For myself, a rent increase took that away, and a second such increase this year left me 10$ a short per month (and I’m in federally subsidised low income housing). For most recipients, increases in the basic Medicare premium tends to wipe out any gains so it is almost impossible to get ahead.

   The simplest way to fund expanding Social Security and Medicare is remove the caps on earnings for income deductions. Those of us struggling to get by on our monthly benefits are in a sense supporting those at the top who are well insulated against economic instability.

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