Re: The N95 shortage America can't seem to fix

gfretwell · 2020-10-29T06:58:43+00:00

There will be a day when this "welfare for the old" society has it'sday or reckoning but I hope I am dead before it happens. Lots ofthings that were fiscally sound when the baby boom bubble wasgainfully employed are not sustainable when we are all retired. Thatis true no matter what your investment vehicle is.When the baby boomers draw down their 401ks and liquidate their otherequities, that is money coming out of the market that is not comingback. We are already seeing the problem in Social Security/Medicare.It is a program that traditionally made the government flush withcash since it's inception but now it is upside down and the reality ofthe trust fund lie is raising it's ugly head. That money was neverinvested, it was simply spent. The government is having to make goodon that lie now from the general fund at a time when they are alreadyrunning a trillion dollar deficit every year. Then there is the wealthgap. The average baby boomer is much richer than their youngercounterparts, yet we are the ones who get the discounts, favorable taxtreatments and generous handouts from the government. The only question is how long it is going to take for the kids todecide to throw momma from the gravy train and start voting that way. Like I said, with any luck I will not live long enough to see that. You can insert your covid conspiracy here Maybe they should call it "Logan's Run Disease". ;-)

Oct 29, 2020 Last reply: 5 years ago 23 Replies

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trader_4 5 years ago

The interest comes from general revenue, just like all govt expenditures on interest on the debt. Interest has nothing to do with drawing down the trust fund.

Not starting, I've been clear about all the above every time you bring this up again.

Totally separate issue. You claimed that the trust fund is being drawn down. AFAIK, that won't start until next year. You claimed that when that happens, the govt has to make up for it out of general revenues. That is false too. As explained many times now, the Treasury just redeems SS Trust Fund securities and sells new ones to investors to replace it. It's swapping one debt instrument for another.

Do we have to go through this again too? Where were you when shyster Trump and the Republicans were passing their reckless tax cut? We didn't hear you objecting then, that it would add to the debt, that it's wrong, that we can't keep kicking the can down the road. On the other hand I was here pointing it out.

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trader_4 5 years ago

Correct, thanks for verifying that SS has not started to draw down the trust fund. But it's still wrong, income tax on benefits is just like any other income tax, it doesn't go into the trust fund.

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Anonymous 5 years ago

On 11/12/20 8:50 AM, trader_4 wrote: <snip>

Not so. See

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where it says: Prior to 1993, "all of the revenue raised from taxing Social Security benefits was credited to the Old-Age, Survivors, and Disability Insurance Trust Funds".

Since 1993, "The additional revenue generated by increasing the maximum taxable proportion of benefits above the second threshold from 50 percent to 85 percent is credited to the Medicare Hospital Insurance Trust Fund", (aka Medicare Part A).

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