What's happened to all the manufacturing jobs?

Then why are benefits paid out of tax revenues ??

 

Prove they are. Be specific. Are you talking about payroll taxes? If so, that's what they are for.

But let's review:

I said Medicare and Medicaid "are fully paid for as is evidenced by the trillions of dollars worth of Treasury securities in the Trust Fund, -fully paid for."

You said "They are not fully paid for. The money has been borrowed by the federal government and is paid back from tax revenues as needed adding to the annual deficit and the national debt."

To which I replied "I have even used the analogy, -which is a perfect analogy, -of you buying a T-bill for your portfolio. NO DIFFERENCE. That is what the SSA does and that is how the Treasuries get into the Trust Fund! "

Now you ask "Then why are benefits paid out of tax revenues ??"



So first you say the Trust Funds Treasuries are not fully paid for and "the money has been borrowed by the federal government and is paid back from tax revenues as needed".

Now when you're cornered you switch to "the benefits are paid out of tax revenues".

Which is it? -or are you just trying to weasel your way out again?

 

Read the link I provided. The money in the trust funds is gone/spent. To pay the demands of the beneficiaries tax payer revenues must be used which adds to the national debt. It's very simple to understand.

 

Obama is a libcommie; all he did was put 12 million in Medicaid welfare!! Trump will replace with capitalism that will reduce costs 80% and add 10-20 years to our life expectancies. Imagine people shopping with their own money and doctors competing on basis of price and quality. Its a no brainer. Sadly, liberals don't have the brains to understand capitalism so we drift downward.

 

FICA withholding covers the cost of SS and Medicare!

All excess monies go into the general fund in return for interest-bearing bonds.

 

There are no trust funds brimming with cash! The excess cash from FICA withholding is BORROWED by the government's general fund and the government in return gives SS interest-bearing bonds. It is these bonds that are held by SS to be cashed in whenever they desire. There is no cash in the SS trust fund...

 

Not entirely. Interest on the non tradable treasuries is now being used and by 2020 these treasuries will have to be sold. The SS system reserves will become fully depleted by ~ 2034. Medicare is in much worse shape.

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The money was used to purchase special treasury bonds from the Treasury. The Treasury has the money and the SS/Medicare system has the bonds.

 

You know nothing. None of that is true. None of it. I'll take time for just one point of your nonsense: there is $2.8 trillion in Treasury securities in theTrust Fund. Those Treasuries have a face value of $2.8 trillion. So any claim that the "money in the trust funds is gone/spent" is a total BS lie without any shred of truth to it.

 

You look so childish when you call people names like that. And it is also revealing. It proves you really have no idea of what you speak because a liberal and a communist are diametrically opposed. A liberal advocates and defends capitalism while a communist works to overturn it.

Are predictions of what you hope will happen all you have? You must know they're worthless, right?

Well, I just showed you don't have the brains to post the truth about the things you mentioned.

 

Then we have seventeen years to eliminate the cap on FICA income.

It was not "used". That makes it sound like it was an option, -a choice. It's the law. Revenue coming into the Trust Fund must, by law, be invested in the safest most stable investment in the world, -Treasuries.

So then you know those bonds were fully paid for and have value. Good. And you know the problem is that the government spends lots of money. Good. So why do you keep faulting S.S.?

 

Dah!!! liberals off-shored them to places like China and Mexico. You honestly didn't know about the 1000's and 1000's of new factories in those places??

Here's the clever part: liberals ship the jobs off shore with idiotic policies like highest taxes in world then claim we need treasonous socialism to get them back rather than simple tax cuts!! Everything is an excuse for socialism if you are a liberal.

 

BIG BRAGGART

Don't know about your "liberals", seems like a nomenclature to hang the blame on someone.

Anyway, the reason all those jobs left for the Far East is because Americans loved shopping at outlets for cheap goods - and the Far East is where they came from.

The asininity of this last election is that the people who lost their jobs as a result of the Great Recession voted for Trump because they thought he would bring them back. They aint comin' back. Not from the Far East.

The economy has been adding jobs all by itself for two years know - don't know where you've been. See here: The Employment-to-population ratio. Did you notice how jobs have increased in every year since 2014 - long before Donald Dork decided to run for PotUS?

So, the country did not need him to reignite job-creation, but these same voters who had lost their jobs swallowed his "Make America Great Again" hook, line and sinker. (In fact, when you look at the numbers, they actually helped him get elected in those states that most mattered to the Electoral College.)

So, despite the fact that he actually lost the popular-vote election, you've got yourself the BigBraggart you all deserve. (And it seems he's still shoveling y'all the same BS.)

Yes, I'm one of those posters on this forum who thinks that Unfairly low Upper-taxation should skyrocket. We could use the additional tax-dollars to train the people who need new skills to find decent work in America. They may have all voted for Trump, but it's by retraining (and not his magic) that they will find better jobs at better salaries.

And those who will need retraining to find a decent job at decent pay are a very, very many for that E-to-R Ratio in the above infographic to return to where it was before it tumbled in 2008 at 63% of the total population ...

 

Here is an interesting read.

http://www.nam.org/Newsroom/Top-20-Facts-About-Manufacturing/

 

Those bonds are IOU's.

 

MIAMI BEACH

That the world wants to keep because the US pays interest on time.

For as long as that continues to happen, those "debt-notes remain operative"; that is, the government of one of the largest functional market-economies in the world finds the money with which to pay the interest.

The dysfunctional myopia of Rightists is to think that Government Debt is like Household Debt - i.e. a debt-collector is going to show up to possess the house. Uh-uh - that aint the way National Debt works anywhere in the world.

At worst, if push comes to shove, America stops working because an atomic-war has happened or the ice-age has frozen over Miami Beach.

Till then, let's not really worry about it ...

 

Those bonds cannot be traded. And they are IOU's. The money has been spent. Our kids have to pay the debt back.

 

So what? They are just debt-instruments that are either sustained (by interest payments) or liquidated wholly.

And American debt is pretty darn good nowadays so there is no "hanging sword" over the economy's neck ...

 

And the debt must be paid by US taxpayers.

 

ENTIRELY!

FICA withholding funds SS and Medicare and when SS needs to cash in those bonds they do.

Nothing is in bad shape? You ASSUME that there will be no changes to funding SS and Medicare and government will just let it go into default??

Extra FICA withholding is not used to 'purchase' bonds...it is your government who BORROWS this cash from FICA monies and gives them bonds in return...

 

This is so stupid...you make it sound as if there are liberal and conservative businesses in the USA and that ONLY the liberal businesses outsource...100% ridiculous!

 

They are not IOU's...they are interest-bearing bonds...

 

Where does the money come from to pay off the bonds ??

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Which are interest paying IOU's. The following was written in 2004.

http://www.heritage.org/social-secu...w-the-social-security-trust-fund-really-works

 

The money comes from the general fund. The money in the general fund comes from taxation, excise taxes, sales of US goods, from excess FICA, etc.

When you buy treasuries for yourself do you consider them an IOU from the US government?

The issue here is no department of the US government is allowed to accumulate billion$ or trillion$ in a cash fund. Since FICA withholding cannot be an exact amount equaling the precise payouts, there might be excess FICA withholding cash. All cash goes into the general fund! But since FICA withholding is not a general tax, and since FICA withholding is earmarked solely for SS, Medicare, etc., the government created special treasuries to be traded to SS in return for the excess cash.

If it was an IOU as you say, there would be no special treasuries...just an entry in the ledger...

 

Why did they not invest in the stock market and get an ~ 5% return.

 

The answer is obvious; They might also get a 5% loss...