Is Social Security Broke?

May 13, 2011

Today the Social Security and Medicare trustees Report was released in Washington D.C at the Treasury Department.  The 6 trustees all discussed where Social Security and Medicare benefits were heading and the information is not good. We have to ask the question, “Is social security broke?

According to the report since the economic recession hit this country there is less money in the fund with more individuals receiving funds as they retire.  Charles Blahous one of the public trustees stated deficits in Social Security will continue to eradicate the funds as revenues continue to decline.  The insurance funds will exhaust  themselves by 2018 if there is no increase in taxes or cuts in benefits.

Our representatives on Capital Hill continue to say there is nothing wrong with Social Security at this time. They continue to tell the citizens there is nothing to worry about, but according to this report we need to address this problem just as we must address the national debt problem which had been swept under the rug for so many years while Congress continued to spend what they didn’t have.

Many citizens have and will rely on this fund as their only source of income upon retirement, we must not ignore the reality that the fund is broke and needs to be fixed. Billions of dollars have been paid into these funds and the citizens deserve their benefits once they do retire.

What’s Wrong With Wisconsin?

February 22, 2011

For the past few days every question we have received from the concerned public is “What’s wrong with Wisconsin”?  The concerns are towards the new Governor, Scott  Walker  wants to end collective bargaining for several government unions. They are up in arms because that is just wrong according to many of the individuals we talked with.  They deserve to be represented by unions many of the voices I heard stated.

One individual was a teacher from Nevada where we have Governor Sandoval who  is working to reduce spending within our school system across the state.  These cuts are needed according to him to balance the budget at any cost. This teacher said his pay will freeze at the level he is currently being paid for a period of three years. No raises for continuing his education up to and including his masters.

As he talked you could see he was upset with the Governor and the cuts. I told him I understand his being upset that his wages would be froze under the new bill if passed. I then stated as a private sector employee my wages have been frozen for the past three years.  I too have not received a raise for any of my hard work since they cut any and all raises because of the economic crisis we are experiencing. I asked him what is the difference between my wages being frozen or his being frozen.

He could not answer the question as he looked at me.  He struggled to find something to say that would appease me and finally after several seconds of silence he stated but he was going for his masters and that alone qualifies him for the additional salary. Now don’t get me wrong, I agree teachers should be paid more so long as they represent the wishes of the people paying their salaries, me and you not some union taking dues so they can spend them on political campaigns to elect officials that will continue to give them what they want so they can get re-elected.

In Wisconsin the Governor said he would not compromise on the issues.  The news has indicated no collective bargaining for several government unions excluding fire department and the police.  The Governor states that is misinformation as the bill doesn’t touch the collective bargaining rights of  individuals.  He also added the members would be paying 5.8% of their retirement costs up from 0%.  Along with that they will also pay 12% of health care costs up from 6% and all this is to balance the budget.

So what’s wrong with Wisconsin trying to control spending by initiating a few new programs that you will find in the private sector at almost every company one could imagine.  As a  private sector employee how much to you think they have to  pay for their benefits? Then look at retirement funds,  if they are lucky enough to have money to put into a 401K  how much does the employer match? Nothing like those in the public sector.   Do you think paying for retirement and insurance is a bad thing. If it is then maybe we as private citizens should be up in arms about the money we pay to have our benefits and retirement fund.