Originally Posted by James Brown
SS of course. There is no real trust fund, if I understand the system correctly. The young workers of today fund the retirement payments made today. If we get to the point where the economy shrinks dramatically, the whole thing fails.
SS and Medicare are both a retirement plan and welfare. Almost nobody in the US could afford the medical care Medicare provides and is more welfare than paid benefit. The costs for it far outstrip the lifetime contributions individuals make, and it isn't even close.
SS on the other hand is a bad benefit for those that have paid fully into it over their work life and welfare assistance (or whatever you want to call it) for those that have not. The returns are horrible if you look at it as a paid-in retirement plan. A 401k would provide far more benefit on contributions made over ones lifetime.
Congress likes to conflate the two as a benefit "we paid for", which is just not true. Separating subsidy from benefit would at least be intellectually be honest and maybe cause real reform at some point.
We all are socialists when we hit 65 and receive a medicare card.