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SGM Metals: Social Security Benefit program Bankrupted By Unemployment Trend?
As more Americans are forced to look to govt. assistance programs during these challenging times the insolvency of these programs are surfacing. At some point those paying into the system are outnumbered by those collecting the benefits, what then?
The 8,786,049 workers taking federal disability in September is a net increase of 18,108 from the 8,767,941 workers who took federal disability in August. Over the past 45 years, the number of American workers taking federal disability payments has increased four-fold relative to the number actually working.
In August 1967, 74,767,000 Americans were working (according to the Bureau of Labor Statistics) and 1,152,861 were taking federal disability insurance (according to the Social Security Administration)
In August 2012, 142,101,000 Americans were working and 8,767,941 were on disability--meaning there were only 16.2 people working for each person collecting disability.
According to the Bureau of Labor Statistics (BLS), a record 88,921,000 Americans were “not in the labor force” in August. These were Americans who were at least 16 years old, who were not in the military or in an institution such as a prison or a nursing home, and who did not have a job and had not actively sought one in the last four weeks.
Also in August, according to the BLS, only 63.5 percent of the civilian population (those over 16, who were not in the military or in an institution)
In 1967 the United States had approximately 65 people who were gainfully employed that were paying taxes & contributing to govt. programs such as social security for every single person who was unable to work for whatever reason (disabled, retired, handicapped, etc.) & collecting the social security benefits to support themselves. In the current configuration of our dire economic scenario we have ONLY 16.2 people working and contributing for those who are collecting the social security benefits which will only serve to bankrupt the program at a faster rate than ever before. Let that register for a moment, in the middle of the last century there were 65 contributors to the social security program for every person who was collecting the benefits the programmed promised them. Now we only have just over 16 contributors for each person who is collecting benefits! How can this program continue to perform as it was designed to if there are an ever increasing number of benefit recipients beginning to collect from the program they contributed to their whole life happening at the same time that the number of workers who contribute to the program are plummeting?
The great lie by omission (well one of them anyway) is that all of the workers over the past century who have contributed to the social security program have been pitching into a collective fund that has swollen in size during decades of high employment & is waiting for those who deserve their share to collect their benefits. The truth is that the social security fund has been used as an ATM by the politic elite over the decades & has served as a dark pool of money that has been raided when the govt. needed money to cover projects & now is a sparsely funded account that is in real trouble. This ugly truth couldn’t surface at a worse point in our nation’s history as there roughly 10,000 baby boomers retiring EVERYDAY for the next couple decades & they have all done their share to help prop up this benefit program & are now expecting to collect what was promised to them. Can you imagine working for 4 decades & contributing to this benefit program only to retire & be told that the fund is deficient to a point of not being able to return your contributions to you? These funds are assumed to be a sure thing & counted on in practically every single retiree or soon to be retiree’s post employment planning.
Let’s do some math here, if the ratio of contributors to collectors was 65/1 & within 50 yrs. has retreated to 16.2/1 as we are gaining momentum in the retiring of 10,000 baby boomers a day, what will the ratio be in 5 yrs.? 11.6/1? 7.5/1? 3.7/1? What will it be when you decide to retire or are forced out of the labor market when your employer is unable to protect their profit margin as raw material costs continue to increase & monetary inflation cripples their ability to keep full employment at their business? Wake up to the fact that this isn’t an issue that will be resolved if we trade out the current president for a new guy as this has been brewing for four decades since Nixon closed the gold window and the US dollar became a leveraged fiat piece of debt paper used to force our foreign policy on the world. The current crisis the world has been sucked into will either magically reinforce the USD as the world reserve currency (with some modification of course) and make it stronger than ever before. Or it will more than likely bring about the end of the dollar’s hegemony as the worlds reserve currency & usher in a new paradigm that shifts the economic world towards the east which will usher in the Chinese century. At some point we have to stop regurgitating the talking points provided by the corporate media & maybe it will finally be time for that now that it has been publicly admitted that NO COMMENTS OR QUOTES ARE PERMITTED TO BE PRINTED REGARDING EITHER CANDIDATE W/OUT FIRST BEING APPROVED BY EITHER PRESIDENT OBAMA OR MITT ROMNEY DIRECTLY!
NPR reported: This past week, we spoke to writer Michael Lewis about his piece in the current issue of Vanity Fair about President Obama. We were not aware at the time that Lewis had agreed to have the White House approve the president's quotes prior to publication, part of the deal that allowed him extraordinary access to the president. The revelation that Lewis had agreed to quote approval to the White House fed into an ongoing media controversy about the practice, once verboten in journalism, but now many politicians and corporate leaders are now requiring quote approval before they'll agree to be interviewed.
The common denominator here is the dollar & this point does not escape those affected most by it. If we continue to print more money to solve the problem of too much money sloshing around in the global economies how exactly will this fix the problems around the world? If we can’t put our citizens back to work since we have exported over 60% of our manufacturing capacity in order to exploit slave wages in the third world how will we get people back to work at home to assist the depleting contributors to the social security fund? We have been told the FED will simply bailout the banks EVERY MONTH to the tune of $40 BILLION while continuing the Operation Twist program that also creates $45 BILLION EVERY MONTH to buy Treasuries to keep the govt. afloat how on earth will we be able to offset the inflation that is already growing to epic proportions?