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For 2012 recipients, social security taxes paid now exceed future benefits

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Based on a study by the Urban Institute, AP writer Stephen Ohlemacher has announced a surprise for couples who started collecting their Social Security last year: They won’t be getting all their money back. In fact, under the assumptions by the think tank, they won’t even come close.

Ohlemacher said that a couple who retired after both spouses earned average wages (each earning $43,500 annually) and paid Social Security taxes of nearly $600,000 over their working years, will receive only $556,000 in benefits if they live out their normal life expectancies. That’s a shortfall of $42,000. And if they happen to die sooner, the difference will be larger.

But buried in the Urban Institute’s study is this basic assumption: that the retiring couple could have earned two percent after inflation on those taxes if they had saved the money outside of Social Security. Despite the poor returns on investments over the last decade, real returns on capital over the past 40 years have approached six percent a year, which puts today’s value of their $600,000 paid in taxes at well over $1 million. Put another way: The couple who retired last year is enjoying a much lower standard of living than they would have if they hadn’t been forced to pay into Social Security.

And this is just as it was designed: Social Security is a wealth transfer system that was flawed from the very beginning.

But initial beneficiaries, such as Ida May Fuller, made out handsomely. Ida May was the first beneficiary of Social Security, receiving her first monthly check in the amount of $22.54, on January 1, 1940. Prior to her retirement she worked as a legal secretary during which time her total contributions to Social Security were $24.75. So she nearly broke even the first month.

Read more from this story HERE.

The Economics of Abortion: Hundreds of Billions of Dollars Lost

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As we all know, there are so many effects that abortion has on our society and the whole world. What seems to be overlooked is how abortion can hurt the economy. People make the mistake that abortion is solely a moral issue, and therefore cannot be related to the effects of the economy.

In the United States, we have a national debt nearing $16 trillion, which has surpassed the nation’s annual GDP. In other words, our federal government is spending beyond our means. Since abortion was legalized in 1973 by Roe v. Wade, over 50 million babies have died, with over 3,000 killed on a daily basis.

It’s horrible enough that these innocent babies are murdered, but can you imagine how many more contributions those 50 million lives would have made? Perhaps one of those aborted could have found a way to cure AIDS, cancer, or asthma, just to name a few. Plus, with more people contributing to society through work, we would have a higher GDP, which would greatly help reduce the burden of our government spending, which spends about $4 billion daily. Much progress could be made to shore up the social security of the 10,000 individuals who retire every day.

According to the Bureau of Labor Statistics, Social Security Administration, Guttmacher Institute, and National Center for Health Statistics, if abortion had never been legalized in 1973, more than 17 million people would be employed, resulting in an additional $400 billion from those workers, with $11 billion contributed to Medicare and $47 million contributed to Social Security. Although it is important to also reduce government spending, these added incomes would nevertheless help the country.

It doesn’t take a world-renowned economist to figure out that when you’re decreasing the youth from abortion and with all the baby-boomers retiring, Social Security is going to eventually run out if we continue with abortions and the amount of spending by the federal government. Even though Social Security cannot last forever with the amount of federal spending today, not having abortion would help Social Security last longer, assuming that the amount of federal spending is the same.

Read more from this story HERE.

Photo credit: utsfl

Congressman: Only ‘theft’ would detour Social Security checks

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Did Barack Obama have one of those unwelcome political moments when the harsh reality of truth accidentally spills out when he said he couldn’t assure Social Security recipients that their checks would be mailed in August unless he got the debt ceiling increase he wanted?

Possibly.

Because, the facts are that although there is a specific Social Security trust fund in which Social Security taxes are tabulated, and the government reports there is a $2.7 trillion balance in that account, the taxes go into and the retirement and disability checks come straight out of the nation’s general fund.

That circumstance has prompted U.S. Rep. Bill Posey, R-Fla., to propose, along with half a dozen other House members, legislation that would make certain the payments to senior citizens are made in a timely manner.

The president’s comment came during an appearance recently on CBS.

Read More at WorldNetDaily By Bob Unruh, WorldNetDaily