Politics

[Altitude sickness]

^^^^ Just another “Conspiracy Theory” anyone with an independent thought already knew 8 years ago.

A commoner would be in prison for less.

 

[Brent in Az]

 

[John Wasmuth]

What many had figured out by the end of 2017 is finally coming to light. Hard to believe it took this long.

https://twitter.com/x/status/1940452440937263396

And odds are not a thing will be done about it and no one will be held accountable……..

 

[Ray B]

The problem with Social Security is that it resulted in a large pot of gold that could be "loaned" to other agencies to fund projects AND 2. the original concept was added to for every donor- What started out as Title 1, sending money to the states to fund their Old Age payments had Titles 2,3,4,5,6,7,8,9 added which added all the "entitlements" to it. the original idea, basically a 401K with a defined benefit has been raided, just like everything else that a politician can steal.

 

[PARA45]

And odds are not a thing will be done about it and no one will be held accountable……..

That unfortunately is the sad truth. No accountability whatsoever, and why things like this will continue to happen since no one is held accountable.

 

[Brent in Az]

That unfortunately is the sad truth. No accountability whatsoever, and why things like this will continue to happen since no one is held accountable.

A bunch of them need to be put in prison to set an example for the rest of the vermin.

 

[DillonG]

Your opinion is shared by a great many, and one that I would also have supported given the option...

The problem with it and why you will never see SS contribution as optional is twofold....

1) The program is fully dependent on the younger workforce contributions to pay for the retirees currently receiving benefits... Even if every younger worker like yourself decided to opt out and even forfeit their contributions to date, the liability would still be unfunded... When reforms actually do take place, you will likely see something in the form of what I mentioned previously where a tiered system will be in place that will pay out a much smaller percentage of benefit compared to your contributions...

2) The other issue is this... I have no actual data to back this up, but I would bet that the vast majority of younger workers lack the financial responsibility and discipline to save and invest for their own retirement... That's really the main reason SS was established in the first place... FDR believed that a government-run retirement safety net was necessary for Americans recovering from the Great Depression... In fact, the entire New Deal was based on growing the government to provide a whole host of post-depression social welfare programs which included G.O.s like the CCC, PWA, and the TVA which created tens of thousands of government jobs...

Of course, back then, the U.S. population was exponentially smaller and the demographics of the workforce where entirely different than they are now... But even then, fiscal conservatives who opposed FDR like Senator Bob Taft (not President Taft) predicted the inevitable failures of creating these types of social welfare programs...

I’m trying to combined a response to this post along with Doug and Ray. So, this might be longer than I anticipated. The first point is dead on, no denying it. The younger are now forced to pay for the elderly. Leaning into the absolute fact that young people do not plan for retirement. I am inclined to claim it is not the problem of the responsible to subsidize the irresponsible. I know this sounds heartless.

My main issue is how politicians will pander to their constituents. The MSM will provide the sympathy and support (journalism isn’t real in the West anymore). Doug and Ray make solid points about the use of SS and Medicare funds. Honestly, the social reforms needed to make the country solvent are the same reforms that would lead to the demise of many political careers. It seems that, governmentally, we are in a hell of our own making.

 

[Red Leg]

I am not making light of the deficit in the least, but a bit of macro perspective is also necessary. As I noted in a post above, our current deficit as a percentage of GDP is a bit over 6%. Believe it or not that is generally in line with the rest of the G7. Should the President and Bessent be correct, and the administration's legislative and trade strategy result in a GDP explosion that lowers our deficit as a proportion of GDP to something in the five percent range or less, then no banking entity on the planet will be concerned in the least about this nation's debt load. At that point, it is merely a domestic economic asset allocation issue.

 

[Tanks]

What’s astonishing to me is who in the U.S. thinks they will be able to survive and retire on social security alone? As of January 2025 the average social security retirement benefit is $1,976 a month.

If one has their house paid for and in a low cost area it could work.

When I start drawing it next year, when I turn 70, I will get over $5K a month. I could make it work.
However, “ I just don’t think at this age, I’m meant to live an uncomfortable life .” I need a lot more than that amount based on my retirement budget.

 

[BSO Dave]

The younger are now forced to pay for the elderly.

Technically this is the case with the way SS has been mismanaged and is currently funded. However, as many here have pointed out, it's by no fault of those retirees who are currently or will soon receive benefits... They paid into a system that promised to manage and invest on their behalf. The federal government failed them, and by that have also failed those who are currently paying for that theft and incompetence... I can understand one's inclination to have a bit of resentment, but that resentment should be focused on the federal government... Participation was not an option either for those currently receiving benefits...

I served on my Labor Union's Executive Board for over 20 years. In that time the trend was always that the younger members where most concerned with raises and benefits they could bargain in the next contract... Very few who has less than 10 years in were concerned about retirement benefits. As you can probably imagine, the opposite was true with the members who were looking at the backside of their careers... Thier priorities where mostly focused on pension and retirement benefits...

It was surprising to see how much resentment some of these younger deputies had for guys that were retired or about to retire. They felt they owed nothing to the guys who, in reality, worked, fought, and sacrificed for the benefits that these kids currently enjoyed... Age and experience changes one's perspective in everything...

I am inclined to claim it is not the problem of the responsible to subsidize the irresponsible. I know this sounds heartless.

I happen to agree....

Conservatives being labeled "heartless" is the #1 talking point for liberal progressives and the socialists who believe these social welfare programs are human rights. Their entire ideology is an emotionally based one...

My biggest issue is with government sponsored universal health care where quite often the health of an individual is a result of the lifestyle choices of those who have chronic health issues... I personally do not believe that taxpayers should be paying for the healthcare of individuals who are substance abusers, tobacco users, and the electively obese who are responsible for the lion's share of long-term health care costs... I have the same issue with perpetual welfare where we reward participants for having more children... It may be a heartless position, but emotion and virtue signaling doesn't pay my taxes...

 

[BJH65]

If one has their house paid for and in a low cost area it could work.

When I start drawing it next year, when I turn 70, I will get over $5K a month. I could make it work.
However, “ I just don’t think at this age, I’m meant to live an uncomfortable life .” I need a lot more than that amount based on my retirement budget.

I’m not sure you could live comfortably on 5k a week maybe every other day! How else could you enjoy sipping your Domaine de la Romanee-Conti Grand Cru 1945. Just kidding …..you've worked hard for your $ no reason you can’t enjoy the fruits of your labor.

 

[Brent in Az]

Record tariff revenue coming in, without inflation, and a better then expected jobs report.
Hmmmm......maybe Trumps plan is working, contrary to the Democrats hope that we end up in the trash heap of an economic Armageddon.

 

[mdwest]

Record tariff revenue coming in, without inflation, and a better then expected jobs report.
Hmmmm......maybe Trumps plan is working, contrary to the Democrats hope that we end up in the trash heap of an economic Armageddon.

and the DOW is booming.. its sitting at 44,700+ right now.. the all time record high close was 45,014.. Its very possible we'll see a new all time high within the next couple of weeks if things continue to trend the way they have been..

which should mean everyone's 401Ks, IRA, etc are booming again...

 

[Brent in Az]

Trump to speak with Putin at 10:00.
He needs to quit effing around with that guy, and tell Vlad he saved a few of the MOP's for the Kremlin.

 

[Tanks]

Record tariff revenue coming in, without inflation

I am on an overseas flight headed to Dallas right now. Just before I left last month I had an invoice from a vendor that had a line item that showed tariffs for everything that was purchased. I gave instructions to mark it up accordingly on the invoice to our clients.

In other words we passed it on plus our markup. If items cost more is it not inflation?

 

[DillonG]

Technically this is the case with the way SS has been mismanaged and is currently funded. However, as many here have pointed out, it's by no fault of those retirees who are currently or will soon receive benefits... They paid into a system that promised to manage and invest on their behalf.

I’m not trying to lay blame on anyone who is lucky enough to receive SS, or will soon. I am laying blame entirely on the federal government. It is the politician that is motivated to keep their current title. In order to do so, they must keep the largest voting block happy.

Unfortunately, our economic system has been radically changed to one of short-term pleasure and have future generations pay for the bill, with interest.

It seems that we historically have made terrible economic choices. The New Deal, taking the dollar off of the gold standard, and most recently Obamacare. I’m sure more studied individuals have other examples, but that may be my main 3. The entitlement programs at some point have to end, or be dramatically reformed. It isn’t military spending or fiscal waste/fraud/abuse that is going to reverse the country’s annual deficit.

 

[Brent in Az]

I am on an overseas flight headed to Dallas right now. Just before I left last month I had an invoice from a vendor that had a line item that showed tariffs for everything that was purchased. I gave instructions to mark it up accordingly on the invoice to our clients.

In other words we passed it on plus our markup. If items cost more is it not inflation?

CPI for June is approximately +.02%. The lowest since 2021.
Forbes is reporting that the tariffs are not making any significant material impact on inflation.
The final reports will be out on July 15th.
I'm just the messenger. All of the economic calculations are above my pay grade.

 

[DillonG]

I am on an overseas flight headed to Dallas right now. Just before I left last month I had an invoice from a vendor that had a line item that showed tariffs for everything that was purchased. I gave instructions to mark it up accordingly on the invoice to our clients.

In other words we passed it on plus our markup. If items cost more is it not inflation?

It is a form of tax or inflation. Call it what you want. I’m experiencing the same thing with purchases from our supply base. I’m not entirely opposed to the tariffs. At some point, you have to let the guy try to do his job, and negotiate with other nations. Short term pain for long term benefit certainly would be considered a win.

 

[BJH65]

It seems that we historically have made terrible economic choices. The New Deal, taking the dollar off of the gold standard, and most recently Obamacare. I’m sure more studied individuals have other examples, but that may be my main 3. The entitlement programs at some point have to end, or be dramatically reformed. It isn’t military spending or fiscal waste/fraud/abuse that is going to reverse the country’s annual deficit.

I think the various entitlement programs will be rolled into a Universal Basic Income (UBI) as AI reduces the need for human labor and creating job displacement that will affect a lot of sectors. Perhaps those who have contributed will receive a higher dispensation than those who haven’t.

 

[DillonG]

I think the various entitlement programs will be rolled into a Universal Basic Income (UBI) as AI reduces the need for human labor and creating job displacement that will affect a lot of sectors. Perhaps those who have contributed will receive a higher dispensation than those who haven’t.

I do agree that it’s possible UBI becomes normal. I’m not a fan of it. Honestly, Andrew Yang floated the idea during his campaign. I just saw his policy as a hand out to gain popularity. Perhaps he was just ahead of his time,

AI will certainly change life as we know it. My big concern is continuing to use human talent to further innovate. If everyone gets UBI, which is socialist/communist inherently, what will those motivated to work and aspire for prosperity be satisfied?