SS benefits could be the first to go in a matter of days if the US defaults

[anonymoose]

The passing of a debt ceiling increase should and must be automatic, with no strings attached. Like we did multiple times during the Trump years.

So what’s the point of even having a debt ceiling?

 

[Truth Detector]

The US could default on its debt as soon as June 5 if the debt ceiling isn't raised by then.
Social Security, Medicaid, and SNAP could be among the first programs to go unpaid.
That means retirees who rely on those programs could be the first to experience the consequences.

Moody's Analytics, for example, has previously estimated that even a short default could cause Americans to lose millions of jobs, and a Joint Economic Committee analysis found that a failure to raise the debt ceiling could cause mortgage and private student-loan payments to surge, along with costing workers $20,000 in retirement savings.


Missed payments from those programs could quickly lead to hardship for retirees. "The maximum from SSI that you can get is $914 a month. It will be really hard to get through a month with that much money, and then those who are able to get Social Security as well get a few hundred more dollars on average. It's really hard to stretch that money through a month. So at the end of the month, people are already often struggling to get by," Kathleen Romig, the Center on Budget and Policy Priority's director of Social Security and disability policy, told Insider.


https://www.msn.com/en-us/money/ret...J?cvid=bc31f5d88a004dbb9d979cc4529f1b43&ei=32

That's a dumb lie that only dishonest low IQ leftist maggots gullibly buy.

 

[Truth Detector]

Not extended, June 5th has been calculated as when money runs out , the maga caucus is holding it hostage

You illustrate what a dumb, dishonest partisan hack you are pretending that Biden doesn't have a hand in this. Moron.

 

[Truth Detector]

It's the Republican Congress holding paying the debt hostage, not Sleepy Joe.

That's a moronic claim. Republicans have been attempting to discuss this for SIX months shit-for-brains. Biden doesn't think he has to do anything in the belief that dumb, American voters like you will blame Republicans. Apparently, he's right about idiots like you.

It takes a serious moron to believe that there is simply NOTHING to be cut and we can keep kicking the debt can down the road for the next congress and administration to deal with.

 

[Truth Detector]

Agreed. As various government agencies run out of money, they'll shut down. Social Security is one of the first since Congress keeps shorting it.

Halfwit understands nothing about Government.

 

[Truth Detector]

Social Security benefits could be the first to go in a matter of days if the US defaults — and retirees will 'really suffer' if Congress doesn't raise the debt ceiling by then


And while a default is unprecedented, meaning it's impossible to predict exactly what could happen, the think-tank Bipartisan Policy Center released an analysis illustrating which federal programs could be the first to go unpaid in the event of a default, based on daily Treasury statements. At the top of the list are Social Security, Medicare, Medicaid, and SNAP, along with Supplemental Security Income (SSI) payments — all programs that retirees heavily rely upon.

https://www.businessinsider.com/what-will-happen-to-social-security-in-default-debt-ceiling-2023-5

Another dumb leftist source. I wish you weren't retarded. Really I do.

 

[Truth Detector]

Congress does not short Social Security. SS benefits are paid by revenues from SS taxes and the shortfall is covered by redeeming some of the $2.7 trillion in government securities in the SS surplus. Congress does not add or take away from this amount.

Correct.

 

[Truth Detector]

My understanding is that Congress has used SS for a slush fund for years instead of investing the money.

WRONG and stupid as usual. Congress funds its deficit spending by giving SS Government IOUs. Much like banks and foreign governments buy. They are called Treasury funds.

In contrast to the Treasury securities sold to the public, which are only guaranteed to return face value when redeemed at maturity, the special issue debt held by the trust funds may be redeemed at face value at any time if needed to meet current obligations.

Like other Treasury securities, however, they are backed by the full faith and credit of the U.S. government.
https://www.investopedia.com/ask/answers/110614/how-social-security-trust-fund-invested.asp

 

[Truth Detector]

I’m content to let the American people decide when MTG and/or Boebart blow this thing into default.

You're actually content in your ignorance and stupidity which doesn't surprise me in the least.

 

[Guno צְבִי]

Notice how low grade answers with multiple posts to one

 

[Truth Detector]

I wonder how many people who depend on government entitlements or whose parents depend on them
nonetheless voted for Republican congressmen.

The abject stupidity that intellectually cripples so many Americans today
makes it completely impossible
to have any faith in the future of this republic.

With partition, we could let the red states go down by themselves.
Without it, the whole thing goes down, and relatively soon.

You misspelled DNC dumbass.

 

[Truth Detector]

That is somewhat of a distortion. The original SS law provided that any surplus in the SS trust fund would be placed in special treasuries and earn interest. It was basically a pay-as-you-go system with no surplus revenues. In the 1980's government realized when the baby boomers began retiring (2010-2030) SS benefits would exceed revenues and raised SS contributions to 6.2%.

Over the years it accumulated a $2.7 trillion surplus. The money was both invested (treasuries drawing interest) and borrowed since money that buy treasuries is used for general operations. The alternative would be for the government to borrow the money by selling treasuries on the open market and the trillions in surplus funds sitting there drawing no interest.

SS benefits now exceed revenues and the treasuries in the trust fund are being redeemed to cover the difference. That redemption requires more borrowing to pay the treasuries. It is part of the intergovernmental debt rather than the public debt. Congress cannot borrow from SS revenue since there is no surplus to borrow.

By about 2035 the surplus will be depleted and revenues will only cover about 70% of benefits.

So, nobody did anything improper or cause problems with SS benefits by borrowing the money. The main problems were caused by a decline in the birth rate (fewer workers per retiree), longer life span, and Congress being too generous by continuing to add new benefits and beneficiaries (spouses, widows and orphans, cost-of-living increases, early retirement at 62, etc.).

It is no different than the other $30 trillion government borrowed through selling bonds, bills, notes.

So, let's say you start a private investment company and tell your clients that if they invest in your fund today, there will be money in that fund for tomorrow and instead of actually investing it, you spend it on yourself. Now you begin taking money from new investors to pay off the old ones. But, the best part of the deal is that when the money starts running out, you charge a tax to your investors to make up the difference.

Social Security, as it is designed, is a terrible Ponzi scheme that does NOTHING in the way of providing security. It's another government grab of our money with little return. If you die too soon, it doesn't go to your children or heirs. It's just gone. Had you been allowed to invest that amount in a 401K, you would actually OWN and control it and be worth far more than what SS would ever pay out.

 

[Truth Detector]

The passing of a debt ceiling increase should and must be automatic, with no strings attached. Like we did multiple times during the Trump years.

In other words, this low IQ moron thinks the Government should have no limitations on what it spends. Dumb.

 

[Dutch Uncle]

Halfwit understands nothing about Government.

Feel free to teach me what you know, TD. It shouldn't take long. LOL

The fact remains you are bitter, hateful and would rather see the world burn down than to die yourself.

You're a selfish, stupid old man who refuses to love others more than yourself.

Get a grip before you die, dumbass. Seriously. Your soul depends upon it.

 

[Truth Detector]

Interesting that you think the Republican Party has no responsibility for our government over the past 50+ years. Is that how you approached your duties in the United States Navy, Terry? "I'm not responsible"?

I can see how an elderly, demented person might think so but not a 20 year Navy Chief Petty Officer.

Maybe it's all the Bud Light drinking that changed you?

There you go again with the dumb lies. But alas, you're a lying dumbass so that appears to be all you have.

 

[Truth Detector]

Notice how low grade answers with multiple posts to one

The only thing being noticed here is what a lying moron you are.

 

[Truth Detector]

Feel free to teach me what you know, TD. It shouldn't take long. LOL

I wish you could be taught, but alas, you lack sufficient grey matter between your ears to comprehend much of anything.

The fact remains you are bitter, hateful and would rather see the world burn down than to die yourself.

The only "facts" here is how you make stupid shit up and pretend you have any idea what the topic is.

You're a selfish, stupid old man who refuses to love others more than yourself.

You're a presumptuous delusional mental case with a misplaced case of self-importance and lack of self-awareness.

 

[T. A. Gardner]

The passing of a debt ceiling increase should and must be automatic, with no strings attached. Like we did multiple times during the Trump years.

Why? That's like saying that every time you spend to the limit on your credit cards, the credit card company has to raise your spending limit.

 

[Dutch Uncle]

I wish you could be taught, but alas, you lack sufficient grey matter between your ears to comprehend much of anything.

The only "facts" here is how you make stupid shit up and pretend you have any idea what the topic is.

You're a presumptuous delusional mental case with a misplaced case of self-importance and lack of self-awareness.

Fourth Grade level insult.

What facts do you disagree with, Trump Dummy? Are you smart enough to say? Did Daddy beat all the sense out of you?

Wow! Thanks for the big words, Trump Dummy. Are you able to support your assertions or are you all talk?

 

[T. A. Gardner]

Interesting that you think the Republican Party has no responsibility for our government over the past 50+ years. Is that how you approached your duties in the United States Navy, Terry? "I'm not responsible"?

I can see how an elderly, demented person might think so but not a 20 year Navy Chief Petty Officer.

Maybe it's all the Bud Light drinking that changed you?

I think both parties make bad decisions. But for the most part, the Democrats are the ones increasingly pushing for a permanent welfare state with heavy handed socialism. That has, at best, been a boat anchor dragging society's advancement down severely. At worst, you end up with a two-tier society of a small elite serviced by a small middle class of "Haves" and most of the public being "Have Nots."

The great social revolution of history was capitalism coupled to individual inalienable rights. The social-welfare state is a return to the previous norm of most of society being oppressed, either overtly, or through dependency on government.