Tag Archives: Social Security

Under Obama’s socialist policies, youth “Misery Index” reaches record high

Young people usually only get one side of every issue - because we don't tell them the other side
Young people usually only get one side of every issue – because we don’t tell them the other side

Obama added $10 trillion to the national debt in his 8 years, doubling it from $10 trillion to $20 trillion. That will be placed on the backs of the next generation of younger Americans. But it turns out that they have many other problems as well.

This is from the College Fix.

Excerpt:

In the last two presidential elections, young voters served as a key demographic that helped catapult Barack Obama to the White House. What has he done for millennials in return? According to a new analysis, made them more miserable than ever.

Young America’s Foundation on Wednesday released its annual Youth Misery Index, calculated by adding youth unemployment, student loan debt, and national debt (per capita) numbers.

Today the youth unemployment rate exceeds 16 percent, and the average student in the class of 2015 graduated with a record $35,000 in student loan debt; national debt per capita, “a remarkable burden that will fall squarely on the shoulders of millennials,” is just under $59,000, the foundation reports.

With that, the index has spiked to a record high of 109.9 this year, up from 106.5 last January, and 83.5 in 2009 when President Obama took office, the foundation reports.

What about entitlement programs?

Business Daily reports on a Social Security problem:

The Social Security Trust Fund just suffered its first annual decline since Congress shored up the retirement program in 1983.

The unexpected $3 billion decline is an indication of the precarious state of Social Security’s finances. Since 2010, the program has been paying out more in benefits than it gets in tax revenue, but the trust fund, which earns about $95 billion a year in interest, had kept growing, though a little less each year.

[…]Under current policies, the CBO says the trust fund will be gone by 2029.

If nothing were done before that point, it would take an across-the-board 29% benefit cut — including on the oldest retirees and the disabled — to bring program costs in line with revenues.

Since we aborted the next generation of workers, we can’t afford to keep paying out benefits at the current rate. There are more people retiring than entering the work force. I hope they start to invest early, but what I am seeing is that they want to take out loans and travel the world for fun and thrills.

Obama doubled the national debt in 8 years
Obama doubled the national debt in 8 years

Anyway, on to the next problem, trillion dollar deficits. They’re back!

Investors Business Daily explains:

The federal budget deficit is back on the rise — by an expected $105 billion this year — the Congressional Budget Office said Tuesday, the first increase since fiscal 2009. Deficits topping $1 trillion will be back before you know it — three years sooner than expected.

[…]The CBO said the rise was primarily due to the year-end budget deal that extended, and in some cases expanded, corporate and individual tax cuts, as well as busting spending caps. The deficit-to-GDP ratio is expected to grow to 2.9% in fiscal 2016 from 2.5% last year. That would also be the first increase since 2009, with the trend getting worse in the years ahead.

From 2016 to 2025, the CBO expects cumulative deficits of $8.5 trillion — $1.5 trillion more than it predicted in August.

This is the budget deal that establishment Republicans like Paul Ryan supported. Rubio didn’t show up to vote against the Ryan deal. I assume that Rubio was OK with the spending bill passing, and these trillion dollar deficits returning. Cruz showed up to vote against the deal, of course.

And finally, the last problem – Obamacare is making health care more expensive than ever for the middle class.

Investors Business Daily again:

People making just $36,000 a year can easily end up spending 22% of it on health costs, even if they are enrolled in a subsidized ObamaCare insurance plan, according to a report from the Robert Wood Johnson Foundation and the Urban Institute.

[…]Individuals earning between 300% and 400% of the poverty level — which works out to roughly between $35,000 and $47,000 — will pay close to a median of 10% of their income on insurance premiums. (This group is eligible for ObamaCare insurance subsidies but at far lower levels than poorer people.)

And because ObamaCare plans typically come with high deductibles and copays, they’ll spend another 5% on out-of-pocket costs. For a worker making $36,000, the combined costs add up to $5,220.

The report found, however, that these costs could easily double. One in 10 people in this income group will end up devoting 22% of their incomes to insurance and out-of-pocket costs.

Even those in the lowest income group could get hit with big bills. One in 10 of those who make less than 200% of the poverty level will face health costs that eat up 18.5% of their income.

Obama likes to paint a rosy picture of the economy in his state of the union, but the real truth is not so rosy. Young people shouldn’t have voted for him, they are not going to live as prosperously as their elders did under Reagan and George W. Bush.

New study: record high 30.3 percent of millenials live with a parent

Those on the left assure us that the secret to creating more jobs is making it easier for more people to go to college. We have to keep taxing job creators and workers, they say, so that we can pay for more people to get a college indoctrination. I mean education! Well, we have been trying that approach for some time – tax the private sector, make it cheaper for people to go to college. And the result is that we now have a record high number of young adults with college degrees, and a record high number of young adults living in poverty and a record high number of young adults living at home.

The article from Campus Reform tells us where we are now.

They write:

An all-time high of 30.3 percent of millennials are living with a parent, according to data released from the U.S. Census Bureau’s study, “Young Adults: Then and Now.”

The study, released Dec., 4, 2014, and tracks the young adult population from the 1980, 1990, and 2000 Censuses and the 2009-2013 American Community Survey, gathering data about salary, education level, transportation habits, and more than 40 other topics.

Millennials are living at home, and more are living in poverty with lower rates of employment than their predecessors.

According to the report, millennials are more likely to live at home than any other generation of young adults. In 1980, 22.9 percent of young adults lived with a parent, while in 1990 the percentage increased to 24.2 percent. In 2000, the percentage decreased to 23.2 percent, but by 2013 it hit a record-level by jumping more than 7 percentage points.

Millennials are living at home, and more are living in poverty with lower rates of employment than their predecessors. According to the study, one in five young adults live in poverty, up from one in seven in 1980. Currently, the study claims 65 percent of millennials are employed compared to the 1980 number of 69 percent.

Yet, 22 percent of young adults have a college degree, compared to only 16 percent in 1980.

The troubling thing about this for me is how much millenials keep voting, again and again, for higher taxes and more regulations. On the one hand, they want to vote against evil corporations. Tax them more! Regulate them, to save the planet! Then, a split-second later, they go and ask these corporations that they’ve been taught to bash for work. There is work for them, all right – in other countries with lower taxes and less regulation.

Anyway, we want to be positive, so again, I’m going to provide people with useful information.

First, study STEM programs:

  1. Petroleum Engineering – Starting Salary: $103,000 / Mid-Career Salary: $160,000
  2. Actuarial Mathematics – Starting Salary: $58,700 / Mid-Career Salary: $120,000
  3. Nuclear Engineering – Starting Salary: $67,600 / Mid-Career Salary: $117,000
  4. Chemical Engineering – Starting Salary: $68,200 / Mid-Career Salary: $115,000
  5. Aerospace Engineering – Starting Salary: $62,800 / Mid-Career Salary: $109,000
  6. Electrical Engineering – Starting Salary: $64,300 / Mid-Career Salary: $106,000
  7. Computer Engineering – Starting Salary: $65,300 / Mid-Career Salary: $106,000
  8. Computer Science – Starting Salary: $59,800 / Mid-Career Salary: $102,000
  9. Physics – Starting Salary: $53,100 / Mid-Career Salary: $101,000
  10. Mechanical Engineering – Starting Salary: $60,900 / Mid-Career Salary: $99,700

And you should also start investing early, and keep investing:

The good news is there are now more millionaires than ever. But when it comes to retirement, is a million dollars enough?

“If they want to be financially independent, retire at 65 and be able to have an income of $40,000 a year in retirement for 30 years, then it’s likely that they’re going to need a million dollars to retire to generate that lifestyle,” said Bruce Allen, an independent wealth advisor.

Living comfortably on $40,000 a year in retirement, which would require a $1 million nest egg by the time you reach the retirement age, will depend on your expenses, investment returns and health-care costs.

[…]Many retirees make it work with less. According to Census data, the median household income for those 65 and older is $34,000, but that’s almost half the $66,000 for ages 55 to 64. In order to preserve that preretirement standard of living, financial experts say you’ll need more than a million dollars.

And the last piece of advice I would be this – if you are a young person, you should be looking into understanding how to save and invest, and you should be reading unbiased financial news. It’s not enough to hope that the government is going to bail you out. In all likelihood, the government will be coming to you in 15 years, looking for you to bail them out of their obligations to pay the pensions and health care costs of retirees. You should not take pride in being ignorant of economics and politics. This is your problem. Wishing and hoping that things will be OK will not make these challenges go away. Just because your friends, your favorite musicians, your favorite authors, your co-workers, etc. are not talking about these issues to you, it does not mean that these challenges don’t apply to you. They do apply to you. And just getting good grades now is NOT a guarantee that you will be OK later. You’re going to be expected to do more with less in a way that your parents never had to do. They are leaving you a worse financial world than they received.

Will the Social Security and Medicare programs be there for young Americans?

Of course not, and the voting in Democrats that they seem to like to do is making it worse.

Here’s an article from the Daily Signal to tell about it.

Chart first:

Social Security insolvent in 2024
Social Security insolvent in 2024

And now the story:

Social Security’s trustees projected in 1983 that the recently enacted Social Security reforms would keep the program active for at least the next 75 years, through 2058. However, according to research by Rachel Greszler, a senior policy analyst, and James M. Roberts, research fellow for economic freedom and growth at The Heritage Foundation, that approach date has accelerated.

“If the trend since 1983 continues, the program will become insolvent in 2024—34 years earlier than originally projected,” Roberts writes.

Now you might think that the way Democrats appeal to younger voters, that they are taking care of this problem for them.

Well, here’s an article from Investors Business Daily.

Excerpt:

The White House recently conceded that President Obama’s executive order effectively legalizing an estimated 5 million undocumented immigrants means that newly legalized workers will contribute to Social Security and Medicare and be eligible for benefits.

Does the president have any idea how much money his action could cost the country — i.e., taxpayers?

[…]The Social Security and Medicare Trust Fund trustees estimate the two program’s combined long-term unfunded liabilities — the estimated amount the government will have to pay in benefits above what it expects to receive — at about $49 trillion. Obama’s amnesty action greatly exacerbates the problem, because retirees get back far more than they pay in.

[…]Because the U.S. pays hundreds of thousands of dollars in retirement benefits, on average, for each new retiree, whether part of Obama’s amnesty program or not, the president has just vastly worsened the long-term financial condition of the country’s two primary retirement safety nets.

But Obama’s newly legalized workers will impose even heavier losses than Steuerle’s examples.

Most workers pay into the programs for their working careers, between 40 and 50 years. But millions of Obama’s newly legalized are working-age adults with children, so many could be in their 40s or older.

Thus they could pay FICA taxes for the next, say, 15 or 20 years — less than half the average American worker — and be eligible for the full array of Social Security and Medicare benefits.

In addition, most will be lower-income workers. The U.S. Bureau of Labor Statistics estimates that foreign-born, full-time workers earn about 80% of native-born Americans ($33,500 vs. $41,900).

Social Security is a social insurance program and is structured to provide disproportionately more benefits for lower-income workers. Medicare pays the same regardless of how much a worker pays in.

To be sure, these new workers’ entry will likely help the trust funds initially, because most will be paying in rather than taking out.

Under current rules, workers must pay FICA taxes for 40 quarters (10 years total) before being fully eligible for the programs. But within a few decades the oldest will start retiring.

Given the demographic unknowns, estimating the amnesty’s financial cost to our retirement programs — and so to U.S. taxpayers — can only be approximate.

But using a basic simulation model, we believe the government will receive about $500 billion in payroll tax revenue (including Part B and drug premiums), and expect it to pay out some $2 trillion in benefits over several decades.

Yeah, so they are actually making it worse. But hey, at least we have redefined marriage, right?

As if that were not enough, there’s this lovely story from CNS News.

Excerpt:

The Daily Treasury Statement that was released Wednesday afternoon as Americans were preparing to celebrate Thanksgiving revealed that the U.S. Treasury has been forced to issue $1,040,965,000,000 in new debt since fiscal 2015 started just eight weeks ago in order to raise the money to pay off Treasury securities that were maturing and to cover new deficit spending by the government.

The only way the Treasury could handle the $942,103,000,000 in old debt that matured during the period plus finance the new deficit spending the government engaged in was to roll over the old debt into new debt and issue enough additional new debt to cover the new deficit spending.

This mode of financing the federal government resembles what the Securities and Exchange Commission calls a Ponzi scheme. “A Ponzi scheme,” says the Securities and Exchange Commission, “is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors,” says the Securities and Exchange Commission.

“With little or no legitimate earnings, the schemes require a consistent flow of money from new investors to continue,” explains the SEC. “Ponzi schemes tend to collapse when it becomes difficult to recruit new investors or when a large number of investors ask to cash out.”

Now you might ask yourself – are young people aware of these things? Of course not. What they learn in university is how to escape their repressive religious backgrounds by experimenting with risky, irresponsible sexual behavior. They are not aware of the situation, and when they vote, they vote like they were picking candidates on American Idol. I guess I can understand why young people act stupidly. They are concerned with what the culture tells them to be concerned about, and that’s legal baby-killing, redefining marriage to separate kids from their mom or dad, police shooting people who commit crimes, a nonexistent gender pay gap and global warming. What is appalling to me is when their parents vote Democrat… which is basically voting to have a higher standard of living for themselves, then passing the bill onto to their kids. It’s especially amazing when married women do this to their own kids. What are they thinking?

Amnesty executive action: illegal immigrants will get Social Security and Medicare

Washington Examiner reports.

Excerpt:

A new clash over retirement benefits has come to a head following President Obama’s decision to unilaterally protect up to 5 million illegal immigrants from deportation.

The White House now acknowledges that many of the illegal immigrants spared from deportation under Obama’s sweeping executive action will become eligible for Social Security and Medicare benefits once they reach retirement age.

[…]However, Obama was less eager to wade into the debate about what to do with newly protected immigrants now paying into Social Security. He didn’t address the matter while outlining his immigration plan in a prime-time address to the nation, but White House aides later confirmed GOP suspicions about how Obama’s unilateral move would affect retirement benefits.

Analysts said that Republicans would use the admission to argue the president is misleading the public about the details of his immigration action.

“It is a bit of surprise,” said Michael Tanner, a senior fellow at the Cato Institute who focuses on entitlement programs. “For a long time, there was an argument made by the administration that [undocumented immigrants] would not be eligible for such benefits. It does seem to be a contradiction.”

Indeed. But that’s not all.

Fox News reports.

Excerpt:

Businesses reportedly will have a $3,000-per-employee incentive to hire illegal immigrants over native-born workers under President Obama’s sweeping action on illegal immigration.

Because of a kink in ObamaCare, businesses will not face a penalty for not providing illegal immigrants health care, The Washington Times reports. Illegal immigrants are ineligible for public benefits such as buying insurance on ObamaCare’s health exchanges.

Congressional aides condemned the loophole saying it puts illegal immigrants ahead of Americans in the job hunt.

“If it is true that the president’s actions give employers a $3,000 incentive to hire those who came here illegally, he has added insult to injury,” Rep. Lamar Smith, Texas Republican told The Washington Times. “The president’s actions would have just moved those who came here illegally to the front of the line, ahead of unemployed and underemployed Americans.”

When stories like this come out, I think back to the elections, when many young Americans who were in college and voting for Obama because he was so cool will have to get the bill for this. Right now, we don’t have to raise taxes to pay for any of this, because Pelosi/Reid/Obama keep adding the spending to the national debt. Pelosi/Reid took over the House and Senate in 2007 when the debt was 8.5 trillion. Since 2007, we’ve added over NINE TRILLION dollars to the national debt – more than doubling it. It’s the young people who keep voting for this massive spending and waste, and thankfully, it’s the young people who will be most impacted by it. There is a price to pay for voting stupidly.

CBO report: Social Security to be bankrupt by 2030

From Investors Business Daily.

Full text, because this matters:

The $2.8 trillion Social Security Trust Fund is on track to be totally spent by 2030, the Congressional Budget Office said Tuesday.

That’s one year earlier than projected in 2013 and a decade earlier than the CBO estimated as recently as 2011.

The CBO delivered the warning in a gloomy long-term budget outlook that shows federal debt reaching 106% of GDP in 25 years, up from 74% now.

The rising debt would come despite revenue rising by 1.8 percent as share of GDP (from 17.6% to 19.4%)from 2014 to 2039 and despite spending other than health entitlements, Social Security and debt service shrinking by 2.5% of GDP (9.3% to 6.8%).

The challenge: Health care spending will rise by 3.1 percent of GDP (4.9% to 8%) and Social Security 1.4 points of GDP (4.9% to 6.3%), which will in turn push interest on the debt up to 4.7% of GDP from 1.3%.

Social Security’s cliff, now just 16 years away, is one that Washington would be crazy to approach. At that point, incoming revenue would be enough to pay less than 75% of scheduled benefits for all beneficiaries, whether just reaching retirement or 100 years old.

Up until the point of exhaustion, the trust fund provides legal authority — though no resources — for the government to pay all benefits despite Social Security’s burgeoning cash-flow deficit, which the CBO expects to reach $320 billion in 2024 alone.

The rapid deterioration in Social Security’s finances has a number of contributing factors. The drawn-out recovery from the deep recession and the extended period of low interest rates have sapped revenue and lowered the interest that Treasury pays to the trust fund based on program surpluses from 1984 to 2009.

On top of that, the CBO expects the underinvestment and long-term unemployment associated with the less-than-stellar recovery to have a lasting impact, boosting the natural rate of unemployment.

In February, the CBO significantly reined in its economic optimism, slashing its projection of the total amount of wages and salaries over the 2015-2023 period by about $3.2 trillion, or 3.6%.

Among the factors that the budget scorekeeper cited was ObamaCare’s work-diminishing effect, which the CBO now estimates to be three times as large as it supposed in 2010.

The CBO said that ObamaCare would reduce employment by 2 million full-time-equivalent workers in 2017, rising to 2.5 million in 2014.

This reduction would result in a decline in aggregate employee compensation averaging 1% from 2017 through 2024, or $1.05 trillion.

An IBD analysis pegged the revenue hit to Social Security from ObamaCare work disincentives at about $120 billion through 2024.

The reduced payroll-tax contributions into Social Security would, over time, result in modestly lower benefits for those who choose less work, but the cost savings from reduced benefits would offset only a portion of the lost revenue.

The nature of Affordable Care Act subsidies — they rise as income falls and decline as income rises — will make work “less attractive” by “creating an implicit tax on additional earnings,” the CBO said.

The work disincentive will lead some people to choose to work less, in part because subsidized health care will enable them to get by with less work.

In addition, the CBO expects ObamaCare to depress wages for lower earners when employers, over time, pass along the cost of the law’s employer-insurance mandate by holding back on wage increases. Lower wages, in turn, will provide another reason for some people to opt for less work, the CBO says.

While the CBO expects compensation to be lower “almost entirely” because people will choose to supply less work, the CBO also expects that some employers “will respond to the penalty by hiring fewer people at or just above the minimum wage.”

Another important factor clouding Social Security’s future: A greater share of earnings goes to those with income above the maximum subject to payroll taxes ($117,000 in 2014).

As a result, while rising longevity and the retirement of baby boomers will make benefits grow faster than the economy, Social Security’s tax revenue is expected only to keep pace with economic growth.

Look. I think there’s practical wisdom in this CBO report for Christians. We have to take into account data like this when making our life plans. And it’s not only Social Security we need to be scared of, Medicare is even MORE insolvent than Social Security. If you are under 40, these programs are not going to be there for you. You have to make other plans. You can’t be running your life plan as if these threats do not exist, because they do. Now I want to talk about how a defensive plan can be better than an offensive plan.

The neutral zone trap

Think of ice hockey and the neutral zone trap defense:

The defending team sets up so four players-usually both wings and both defense-remain in the neutral zone, while the center forechecks into the offensive zone. The center’s job is to block the passing lanes from the puck carrier, forcing him to carry the puck forward into the neutral zone. Once the puck carrier reaches the neutral zone, the center stays toward the center of the ice, forcing the puck carrier along the boards. Two of the other defending team’s players collapse in on the puck carrier, forcing him to dump the puck into their zone, forcing a turnover.

This plan allowed the New Jersey Devils to win the Stanley Cup against the high-powered Detroit Red Wings in 1995:

The following season, shortened by 34 games because of a lockout ordered by NHL owners, the Devils entered the playoffs as the No. 8 seed in the conference, with only a 22-18-8 record. In the West, the Detroit Red Wings looked invincible, cruising to the Stanley Cup Finals behind a galaxy of offensive stars.

But that’s when Lemaire went to work, putting his Devils through daily lessons in the trap, preaching constantly about being in the right defensive position at all times. It was hard, but it worked. The Devils upset three higher seeded Eastern teams to get to the Stanley Cup Finals, but remained prohibitive underdogs against the Red Wings.

Many predicted a sweep – and that’s what happened. What nobody predicted was that it would be the Devils who did the sweeping, thanks to a stifling trap that limited Detroit to seven goals in four games.

“They frustrated the heck out of us,” former Red Wings defenseman Mike Ramsey told the St. Paul (Minn.) Pioneer Press. “You weren’t trying to beat one guy. You were trying to beat four. They had enough talent and size where they didn’t have to play that way. But they knew what they were doing. Every player was on the same page.”

When coaches across the NHL saw how Lemaire was able to totally shut down such a great offensive team, the trap began to be copied by almost everyone. Roger Neilson had implemented a form of the trap with the expansion Florida Panthers from 1993-95, and his successor, Doug MacLean, took it even further. The neutral zone became almost impossible to navigate against the Panthers in the 1996 playoffs, and Florida suddenly found itself in the Stanley Cup Finals against the offensive-minded Avalanche. Criticized by the media about the trap, MacLean responded, “I like boring”.

Yes, and he likes winning,too. Sometimes people who appear to be risk-averse seem “scared” to others… but what matters is the scoreboard.

I hate to see young people making life plans while ignoring real life obstacles. The national debt, the demographic crisis, fertility (for women), etc. are real problems. Let’s take these threats into account when we are planning our lives. It’s just unwise to think that we can do whatever we want and then count on God to bail us out. We need to be practical. We live in challenging times, and we need to have prosperity and stability in order to protect our faith from external threats which are so often the root of despair and apostasy. The score on the scoreboard is not related to who took the biggest chances and felt the most excitement, it’s related to who actually scored. I feel excited when I win.