Social Security Intro

Basics on how social security works

Category:

Education

Tags:

• united
• states
• debt
• deficit
• budget
• OASDI
• trust

[SonofDust777]

Thanks Mr. Sal. Educating on us about the economy is extremely helpful right now. It's great to just hear the facts and letting us (the people) make up our own minds.

[arabidopsis1]

Thanks for the very informative video,

[JoSigurd92]

@kiyushot that's almost too stupid to reply to. Take a look a the number of persons in the baby boomer generation, then the size of generation X and Y. Did you notice the baby boomer generation is ENORMOUS in comparison? Now, when that MASSIVE generation retires, what do you think happens? The next generation is small in comparison, and SIMPLE logic dictates we're going to have a big problem regarding what Khan explained in the video. Did you even watch it, or are you just trolling?

[kiyushot]

@JoSigurd92 So the baby boomers are the only employees? No new employees to take their place? Is this it? Will there be insufficient employees to work in the US industries? 

[JoSigurd92]

@kiyushot With the baby boomers retiring, I don't see how that's a possibility.

[kiyushot]

All wrong if we manage to have more current workers than people receiving Social Security?

[Chaos511]

@MrBigEnchilada 1.It being mandatory has nothing to do with it. In fact it makes it worse if it is really a ponzi scheme.

2. That's wrong. First, demographic trends break the system, as shown by Sal, with the populayion going older money coming in lowers and money coming out increses. Second, the money from the trust fund is "invested" into buying Government bonds and is re-supplied with taxes, in a way that demands ever-increasing taxes to sustain itself. So yes, it is a ponzi scheme.

[CheckM8King2]

The money the participants put into the independent 'Trust Fund' rather than into the

general operating fund, and therefore, would only be used to fund the Social Security

Retirement Program, and no other Government program, and, under Lyndon Johnson the money was moved to The General Fund and spent to fund other programs.

[MrBigEnchilada]

social security is not a ponzi scheme because:

1. its mandatory, ponzi schemes are not

2. you should be able to get your money back as long as the government doesnt waste it on their budget, in a ponzi scheme it's theoretically impossible to pay all investors.

[dlstb]

@goyomarquez Actually, the US gov't is not in control of the monetary supply. A private bank called the Federal Reserve controls the monetary supply and the Congress and President have no control over it. They gave up this control when they wrote a bill granting this private bank a monopoly over the US dollar in 1913. Since then, any action by Congress to control the monetary supply has been only to keep up the appearance of normality in this corrupt system.

[dlstb]

@PressForFreedom I like your comment except for the part about the gov't having spent the money on things like wars. While technically true, the fact is that once the excess money was converted into gov't bonds it became a loan to the general fund in the treasury and went toward any and every expense imaginable. Now, if they also borrowed against the trust fund as an asset, that is an illegal accounting error because you cannot borrow using your debt as collateral. It doesn't make sense.

[dlstb]

@gobberpooper not essentially, literally. And in 2018 when the monthly proceeds match the liabilities they will have to raise either the FICA witholding or raise regular taxes. This is because the trust fund only invested in gov't bonds or loans to the gov't. So your parents paid into an account and they got immediate benefits of higher taxation with the promise that you would also give them a retirement and pay back all the extra tax money that they spent. It is generational theft.