To Be or not to be any Social Security?
There is a movement among groups, Political Parties and individuals who are pushing for reductions in Social Security benefits or saying it is an obsolete program costing taxpayers to much money. Reform is needed, or in some minds that program needs to be put out of its misery. It has outlived its time. Has it or has a new generation of people, have no concept of what the Social Security benefits provide them after working until a retirement age paying into the program earns them. Without that program benefits at the traditional age of 65 for retirement, would this new generation have provided those benefits on their through savings, and investments. Keep in mind there is a tax associated to savings, and investments, not to mention private retirement accounts through your employment. How many of that new generation would have worked the same job for say 45 years to gain those work-related benefits and discover they underestimated the benefits. What is more reliable a job that may not last 45 years because the company closed its doors, went bankrupt, and no pension fund left. Did you manage to build a nest egg in savings for 45 years, did you managed to pay off your mortgage on a house? Or are you one of millions of others who worked steadily from job to job, maybe not bought a house but continue to rent. So many variables in 45 years from divorce, widowhood, disability, the economy going up and down, and politics. The kind of politics and administrative changes in Washington D.C. we see every four to eight years.
The Social Security Administration is 88 years old, founded in 1935 by the Franklin D. Roosevelt administration to assure that those retiring at age 65 would have invested a set percentage of there wages into a government retirement program tax, where the government invested that percentage to grow the fund to insure you had a set amount of retirement funds to live on. Medicare came later to insure you had some medical insurance. These benefits where in addition to any private pension funds, personal savings and investments. It ensured that every American worker who paid into the program could live a reasonable comfortable life after they retired or could no longer work. I would admit after 88 years the program has seen many changes in increased benefits and reduction of benefits depending on which political party and administration is in the oval office. Has these variables helped the program remain solvent as intended by Franklin D. Roosevelt. The program has dealt with inflation and recessions swinging back and forth, and the threat of a political axe job when those in congress and the oval office have a different political point of view then those who voted them into office.
Who is behind this political axe job today? Is it the wealthy who see the tax a burden on them? Is it the extreme wealthy who have no need for Social Security funds? Is it the middle class who need it evidentially. Is it the low-income and poverty level worker who needs the benefits the most when the time comes. A persons income be it very high, high, medium and low is charged the same percentage of tax with an income cap built in. Those percentages change from time to time based on inflation, recession and politics. A point system called a work credit score based on earnings made during those years you worked, determines your final eligibility when you retire. You must earn a certain work credit score by the time you retire to receive Social Security benefits. Fail to reach that score of 40 points or more, you cannot receive the benefits you paid in. The score determines if you earned enough income in relationship to how long you have worked one job or several jobs throughout your life. For those who were dealing with high unemployment, low total earnings say for 45 years earn a lower score less than 40 work credits can and will disqualify them for benefits. In reality a person who only earned a total $22,000 in taxable income over a 30 years earned a score of 29 points. That person is disqualified to receive social security benefits because they paid into the program only $1,114 in Social Security taxes, and $214 in Medicare taxes. That individual work history was affected by emotional disabilities and physical disabilities since birth that effected their inability to hold a job. That person survived on Welfare. That person eventually at age 48 received SSI. When he reached the age 65 expecting he had earned Social Security benefits to replace that SSI, learned they were ineligible for those benefits. This is a stark reminder that unless you have earned that work credit score above 40 what you invested into the program (taxes) earns you no benefits or interest on the benefits you paid in. In this persons case, that 1,114 dollars was supposedly earning the Social Security administration a gain from investments from that tax money the taxpayer paid over a 30-year period. So, in this situation who got the benefits of that investment gain. It would appear the person or persons who earned the 40-work credit score did. This is just a real example of how the Social Security investment of the tax paid in, do not benefit the low wage earner or person whose work history is flawed.
Many ask today what happens to the Social Security tax paid in when in fact it is not tied to the name of the beneficiary who paid those taxes, as would be with an interest-bearing savings bank account. The holder of that savings account owns that money and earned that interest based on the investment the bank makes for the holder of that account. Using the money to earn interest from lending loans to others and paying interest to the money used from that savings account. It is what keeps a bank generally solvent. Some asks what happens in the case of a single person who never married and passes away say at 60 after working for 40 years for the same company and paying in SSA taxes for 40 years and earning their 40+ points. Does his unused benefits go into limbo, does it get re-distributed to other beneficiaries in the program or does it leave SSA to support other government programs. It is certain or should be, that the SSA has invested those 40 years of the person taxes. Which would raise the question why is the SSA telling us they are facing bankruptcy in the very near future? Just how many unused 88 years of benefits due to a person passing on before they can retire fail to prevent bankruptcy when you consider the total deathrate of such individuals from say age 18 to 60 never living to gain those benefits in 88 years, if they are a single individuals with no children or legal spouse to claim those benefits. I doubt the benefits can be claimed by a cousin.
It would appear it is fact that Franklin D. Roosevelts Social Security Administration has in the last 88 years developed some problems. That does not mean it should be scrapped. Nor does it mean the extreme rich have no responsibility to pay their fair share in taxes and say why do they need it. Yet some actually get the retirement benefit they earned on their millions of income when they retire still having millions in assets. That does not mean it should be scrapped either. So many point of views from so many groups, individuals, and political arena’s who only see, read, and hear the word ‘TAX’ and cringe as if it is poison they have to take. Is it selfishness, is it creed, is it misinformation, is it a new generation of people who are easily mislead, unfamiliar to government facts, or a lack of a proper education on government programs, tax programs, and how government worked in the past and present. Is it possible that our younger generations are going to be lead down the wrong path in believing the SSA benefits are not needed, when it fails to exist, so they fail to provide for their retirement without the tools and knowledge to set up their own retirement funds. I am reminded of the fable of the Ant and the Grasshopper where the Grasshopper fiddled and danced all day and the Ant prepared for the future with hard work and putting aside for his retirement. Fortunately, when the Grasshopper realized his folly and was going hungry, had no shelter from the storm. The ant didn’t let him die for his folly but provided him food and shelter. Nor did the Ant like some Ants today eat the Grasshopper to fatten his own belly. Is our government politics and leaders (some), the ant who eats the Grasshopper or the ant who gave the Grasshopper food, shelter and his dignity when the Grasshopper retires. I was that individual who discovered he didn’t earn his work credit score. SSI continues to be my source of survival at age 72 based on my disabilities since birth. Its not the pot of gold I dreamed of as a youth, nor what some Ants in politics think ($11,136.00 yearly income) is still too much.
I am Robert D. Vergeson, and I have been writing for Medium.com since 2019. This is my 72nd posting on Medium.com. I also write and publish eBook’s under my penname Rowlen Delaware Vanderstone III available at Smashword.com, some 47 eBooks to date in the genre of Non-fiction, Fiction, Mysteries, Sci-Fi Fantasy, Teen adventures, Essays, Plays and Poetry.
