Food For Thought
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The Real Social Security Facts
and What You're Not Being Told

February 5th, 2005
by columnist
David Lawrence Dewey
"Reading provides knowledge...
knowledge leads to answers."
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IMPORTANT UPDATE - - - July 15, 2011

A DL DEWEY Exclusive
In Depth Special Report Report

After reading this article, you can post your comments on the message board.
Click on Message Boards above, select: Putting Americans Back To Work and post your comments.

Putting People Back To Work
Will Resolve Deficit and Save Social Security
The Facts You Need To Know America
David Lawrence Dewey - July 15, 2011 © copyrighted

Also Make sure you read my column from 2004....
The Truth About The Job Loss In America - More Job LossesTo Follow - February, 2004.
I reported in 2004 and warned what would be happening over next 4-5 years. I warned of the mortgage loan meltdown and why it would happen and how to protect yourself then from losing much of your retirement funds. I also presented the facts as to why we where losing jobs in America that had been here for 75 years.

My fellow Americans, I don't know about you, but I have grown tired of the dis-information that both political parties continue to dish out to the un-informed public concerning Social Security.

Let me make one thing very clear, Social Security IS NOT headed for bankruptcy. There are NO weapons of mass destruction this time that will cause Social Security to go bankrupt.

The 2012 and 2042 dates that President Bush used in his State of the Union message is not only incorrect, but old data from 2003 according to official Social Security and Congressional Budget Office data.

Futhermore, it is not Social Security and the privatization of Social Securtity that needs to take place. It is Medicare and especially MEDICAID reform that has to take place and the only way to do this is the creation of a National Health Insurance Program for those that do not have or cannot get health insurance.

Neither political party wants to address the real issues of the Social Security crisis which is Medicare and Medicaid.

I'll explain why in more detail later.

The following information is the current and correct facts issued by both the Social Security and Congressional Budget Office in a new report released in January, 2005:

Social Security IS SOLVENT at least through the year 2052, paying 100% of benefits to upcoming retirees. After that date, payroll taxes collected would still be sufficient to cover 78% of benefits being paid.

Source: Congressional Budget Office Report on Long Term Projections Social Security 1-31-05. This is a .pdf file.\doc6064/01-31-Long-Term_Projections.pdf

There is no crisis as being portrayed, however, there is a serious challenge by our elected officials to "tweak" and "correct" the Social Security Trust funds to avert this 22% reduction in benefits after 2052. This can easily be accomplished by various means if both parties would simply stop making this a political game for their own benefit and concentrate that it is an issue for the welfare of all retirees. The lies and disinformation that are being propogated from both parties need to stop.

Over the last several weeks, I have received hundreds of emails on this matter from all ages that are completely in the dark of the real and true facts concerning Social Security. I have found that many Americans, expecially the younger generations don't even know the year Social Security was started.

So, before the cold hard "real" facts are presented of what you need to believe in and not what you're being told to believe, below is a short history and explanation of the Social Security program and the "real" facts and data.

So that you know that the following information and data is "true", links to the appropriate government agency is provided dislosing this information.

From time to time as you read, I will also give my opinion of solutions to correct certain problems.

One thing you need to know and understand because this has a huge impact on this problem.

The Social Security Trust Funds were kept separate, not included in the Government's General Funds or accounting, nor included in the Budget prior to 1968. In 1968, President Johnson, to finance the Viet Name war issued an Executive Order, (without Congress's approval), moving the Social Trust Funds into the General Funds of the Government.

Ever since, the government has been "spending" these retirement dollars, putting I.O.U.'s in place of the actual cash. I stress cash, because that it was it is when it deducted from a paycheck, and the employer matches the social security contribution.

When you hear that the Federal Deficit has reached an all time high, it's actually even more than you think. To arrive at the "true" and "correct" total of the U.S. Deficit, the total assets, cash of the Social Security Trust funds need to be SUBTRACTED to the reported deficit. The assets of the Social Security Trust Funds are added into the Budget as a postive cash flow which offsets the "true" Federal Deficit.

In other words, plain and simple, the politicians in Washington have been lieing to you since 1968 about the "true" Federal debt of the U.S. Government. If your bank did something like this to your accounts, would you put up with it? I don't think so.

Here is the current "true" facts of the "true" Federal Deficit.

It is being reported that the U.S. has a $7.6 trillion dollar deficit. National Debt.

However, $1.7 trillion dollars of Social Security Trust Fund monies are added in as an asset into the Budget.

In reality, there is not a $7.6 trillion deficit, we actually have an additional $1.7 trillion dollar deficit debt on top of that. Add the $1.7 trillion to the already $7.6 trillion and the actual U.S. Debt is a whopping - $9.3 trillion dollar debt, the largest in U.S. history.

The Social Security Trust Fund assets and I stress this, should not be added in as a asset in the accounting and budget of the U.S. Government. These funds are NOT the government's money, it is the retirees. The Social Security Trust Funds, (CASH), are no different than a 401K retirement plan that one cannot touch until one retires. The Government should not be including this into the budget, nor spending the money, plain and simple.

Americans need to raise this issue with their elected officials in Washington immediately to force the proper accounting of the Social Security Trust Funds. The Social Security Trust Fund Assets or balances need to be removed from the U.S. General Fund and Budget balances. It is not the governments money. By adding it in, it "hides" from real "debt" that politicans are creating.

Now that you now the "true facts" about the "true" are the "true facts" concerning Social Security.

When Was Social Security Started?
Who Are The Board Of Trustees?

The Old-Age and Survivors Insurance (OASI) Trust Fund was created pursuant to section 201 of the Social Security Act Amendments of 1939. These amendments also establised a Board of Trustees. OASI became effective on January 1, 1940, and superseded the old-age reserve account established under the Social Security Act of 1935. Trustees The Board of Trustees currently consists of 6 members, 4 of whom automatically serve by virtue of their positions in the Federal Government. These 4 are the:

Secretary of the Treasury (the Managing Trustee),
Secretary of Labor,
Secretary of Health and Human Services, and
Commissioner of Social Security

The other 2 members are appointed by the President, and confirmed by the Senate, as required by the "Social Security Amendments of 1983." These 2 members serve 4-year terms.

How Are The Social Security Trust Funds Invested?
Types of Securities Held by the Social Security Trust Funds

* At the end of 2004, nearly $1.7 trillion dollars of Social Security Turst Funds were held in these investments.

The trust funds hold special issues (SI) sold only to the trust funds. These SI securities are of two types: short-term certificates of indebtedness and long-term bonds. The certificates of indebtedness are issued on a daily basis for the investment of receipts not required to meet current expenditures, and they mature on the next June 30 following the date of issue. Special-issue bonds, on the other hand, are normally acquired only when special issues of either type mature on June 30. In addition, the DI Trust Fund holds a very small amount of marketable bonds (bonds available to the public).

All securities held by the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds are issued by the Federal government. Almost all of these securities are special issues—securities issued only to the trust funds. Those securities available to the public are called public, or marketable, issues.

Special-issue investments bear interest rates determined by a formula. The current formula sets the rate applicable in a given month to the average market yield on marketable interest-bearing securities of the Federal government which are not due or callable until after 4 years from the date the rate is determined. This formula became effective with the October 1960 rate. The rate is determined on the last business day of the month preceding the month of issue. Tables of such monthly interest rates provide rates back to 1937—the beginning of the Social Security program.

Interest on special-issue investments is paid semi-annually, at the end of June and the end of December. Because the trust funds hold no cash, investments are redeemed each month to pay for benefits and administrative expenses. When investments are redeemed, interest is paid. The amount of interest paid is used to offset the amount of investment redemptions.

Although new investments for each trust fund carry the same interest rate, amounts of income and outgo differ between funds, resulting in a different investment portfolio for each trust fund. An effective interest rate provides a measure of the rate of return on an investment portfolio. The effective interest rate is calculated by dividing interest earned on investments during a calendar year by the average level of investments during the year. A table of such effective rates provides rates back to 1940 by trust fund.

What Has Been The Total Collections and Payments
Of The Social Security Trust Funds Since 1937?

*The following just shows amount since 1977 to 2004.
Click on the link above for prior years.

* Note that the balance in the Social Secuirty Trust Funds as of Dec. 2004 is $1.6 Trillion, 635 Billion Dollars.

Old-Age, Survivors, and Disability Insurance Trust Funds, Fiscal Years 1977-2004
[In millions]
Net increase
during year 1
Amount at
end of year
1977 $81,170 $85,068 -$3,898 $39,615
1978 89,595 93,861 -4,265 35,350
1979 102,090 104,073 -1,983 33,367
1980 117,428 118,548 -1,121 32,246
1981 134,565 139,585 -5,019 27,226
1982 148,028 155,964 -7,936 19,290
1983 170,280 170,058 12,660 31,950
1984 178,461 178,199 262 32,212
1985 197,865 188,504 7,538 39,750
1986 215,461 198,730 6,117 45,867
1987 226,893 207,323 19,570 65,437
1988 258,090 219,290 38,800 104,237
1989 284,936 232,491 52,445 156,682
1990 306,822 248,605 58,217 214,900
1991 322,611 269,096 53,515 268,415
1992 338,270 287,524 50,746 319,161
1993 351,354 304,566 46,788 365,949
1994 376,307 319,551 56,757 422,706
1995 396,276 335,830 60,446 483,152
1996 416,064 349,654 66,410 549,562
1997 446,553 365,238 81,316 630,878
1998 478,608 379,291 99,318 730,195
1999 514,731 390,019 124,712 854,908
2000 561,251 409,404 151,847 1,006,754
2001 595,913 432,926 162,987 1,169,741
2002 614,977 455,910 159,067 1,328,808
2003 630,253 474,721 155,532 1,484,340
2004 646,628 495,525 151,103 1,635,443
1 The annual net increase in the funds is the change in the assets from the end of one year to the end of the next. In 1982 (fiscal year 1983), the Old-Age and Survivors Insurance Trust Fund borrowed money from the Hospital Insurance Trust Fund, and repaid the borrowed amounts in 1985 and 1986. For each of these years, the net increase in the funds is equal to total receipts less total expenditures, plus amounts borrowed or less amounts repaid.
Fiscal year 1977 was the first fiscal year to begin on October 1.

What Has Been The Effective Interest Rate Earned
On The Social Security Trust Funds Since 1937?

Social Security Interest Rates The effective rates in the graph are for the combined OASI and DI Trust Funds. For comparison, the annual average of the monthly special-issue rates are also shown. The rates shown are for 1967 and later. Clicking on the graph will reveal the same type of data going back to 1940.

How Much Has Been "Estimated" To Be Paid Into
and Paid Out of The Social Security Trust Funds
By Taxpayers and Employers in 2004 and Prior Years?
* This data is available by year by keying in year at above link. These were "estimates" to be used for projections. Please see note the *actual listed which is from the actual report above.

2004 - $553 billion, 747 million, 472 thousand and 346 dollars.
2003 - $553 billion, 306 million, 352 thousand and 941 dollars.
2002 - $533 billion, 561 million, 864 thousand and 91 dollars.
2001 - $519 billion, 585 million, 697 thousand and 219 dollars.
2000 - $494 billion, 485 million, 63 thousand and 433 dollars.

Total last five years "estimated" to be collected:
$2 trillion, $100 billion, 938 million, 977 thousand and 294 dollars.

Total last five years "estimated" to be paid out:
$2 trillion, 95 billion, 214 million dollars

Actual collected: $3 trillion, 49 billion, 22 million dollars last five years.
Actual paid out to beneficiaries: $2 trillion, 268 billion, 486 million dollars.
Actual Net Gain In Assets Last Five Years: $780 billion, 536 thousand dollars.
Actual Assets of Social Security Trust Funds 2004 = $1 trillion, 635 billion, 453 million dollars.

As you can see, the estimate that budget officials came up five years ago fell far short of what was actually collected in taxes, an average of $156 billion MORE a year was collected.

However, note the "estimated" paid out was not that far off.

This descrepancy of "estimated" collected versus "actual collected" begs to ask the question concerning the accuracy of the estimated projections that have been made as to the viability of the trust funds. Is someone "fudging" the figures to justify and or make it appear that there is a "huge" crisis?

One thing is clear, this is not to discount the fact that the Soecial Security Trust Funds need "minor" fixing to correct problems that will start to occur in 2052, not 2042 as reported by the President. This also shows that the system IS NOT going bankrupt. This "fear" tool is being directed towards the younger generation to gain their support by this Adminstration to, as it states, "prevent the funds from going "bankrupt". That statement is simply not true.

This isn't the first time that President Bush has harped and used the "scare" tactic about Social Security.

In 1978, during President Bush's run for Congress in Texas, according to Gary Ott, who was then a reporter for the Plainview Daily Herald, Bush stopped by the paper's little office maybe five or six times. According to Ott, "he'd sit down at my desk; he was a fun guy. He was very outgoing, very friendly, and we would argue politics since I was a liberal. We'd argue over Carter policies." ush criticized energy policy, federal land use policy, subsidized housing, and the Occupational Safety and Health Administration ("a misuse of power," he said), and he warned that Social Security would go bust in ten years unless people were given a chance to invest the money themselves. None of this really distinguished him from Hance, though, so in the end Bush simply argued that a Republican could better represent the district: "If you want a chance in the way Congress has been run, send someone who will be independent from those who will run the Congress."

Note the part about "run the Congress". Another words, Bush believes he can "run the Congress." And the "scare" tactic about Social Security going broke in ten years in 1978 that Bush peddled didn't hold water then and it doesn't hold water now. For more details, read this 1999 article,

Futhermore, President George H.W. Bush, the present President Bush's father, spent the money from the general revenue fund account faster than it could be collected. In its place, this cold hard cash was replaced with non-marketable special issue government securities.

President Clinton continued this practice. Every cent of the Social Security surplus that flowed in under both Bush Senior and Clinton was spent. And it has continued with the present President Bush. Interesting is that this misuse of Social Security funds became a major campaign issue in 2000, and both George W. Bush and Al Gore pledged to end the looting. But the looting hasn't stopped. They both lied.

President Bush repeatedly promised not to touch the Social Security money. Finally, in his first State of the Union address, delivered on February 27, 2001, Bush said, "To make sure the retirement savings of America's seniors are not diverted to any other program, my budget protects all $2.6 trillion of the Social Security surplus for Social Security, and for Social Security alone."

That has not happened! The money has been spent!

George W. Bush has violated both the pledge and federal law to protect the Trust Funds when he spent every dollar of the $509 billion in Social Security surplus that was generated during his first term. President Bush continues to violate his pledge, and the law, each and every day as he spends the approximately $400 million in Social Security surplus that becomes available on a daily basis to finance the Iraq war and rebuilding efforts. This is occuring when 45 million Americans have no health insurance and many social programs like child care for single working mothers have been shut down because this present adminstration has cuts funds to such programs.

Bottom line, this "bankruptcy" scare of the Social Security Trust Funds is an attempt to draw attention away from the main problem...and that is the looting by both Bush, Clinton and now Bush again of the Social Security Trust Funds. There is no "cash" there. The cold hard cash that Americans worked for, that was deducted from their paychecks and sent in to the government to be placed in a Trust Fund for safe keeping for theri retirement has been spent It actually is not there. Let me repeat, the cash is not there, only I.O.U.'s. from the Federal Government. Hello America, what wrong with this picture? Wake up!

What Have The Social Security Trust Funds Earned Since 1937?

Privatization of the Social Security Trust Funds it not the way to go. The funds have been earning a decent interest rate since its inception. From 1937 thru 1939, the funds averaged a 3% return. Not bad for those years. From 1940 to 1960 they averaged a low of 1.875%, ( war years 43-46 ), to as much as 4% during those years. From 1961 to 1968, an average of 6%. Remember in 1968 is when President Johnson through Executive Order combined the Social Security Trust Funds with the General Fund to pay for the Viet Nam war.

In 1969, an average 6% to 7.25% return was seen. From 1970 thru 1978, an average of 7.25% to 8.65% return was seen. From 1979 , it jumped to 9% and 10% average return. In 1980, it climbed from 10% to 12.125%. During the 1980's, the average return ranged from 8.0% to 12.125%.

During the 1990's, the return ranged from 7.0% to 9.3%.

In 2001, the average earnings rate started to decline.

In 2000, it was a 6.9% return. In 2001, it was 6.7%. In 2002, it was 6.4%, In 2003 , it was 6.0%. In 2004, it was 5.7%.

One problem has been the "high" adminstrative costs of the program. Why are the politicians not modernizing and streamlining the operation?

The reason for the fall in the rate of investment earnings the Social Security Trust Funds have made since 2000, has been due to a poor economy since 2000. Over 2 million permanent jobs have been lost to overseas outsourcing. This is 2 million in taxpayers who are no longer paying at all or not at much into social security as they did because the average wage earnings for these 2 million who have had to find other jobs has decreased 18%. They've had to take lesser paying jobs.

It it estimated that out of these 2 million jobs that were lost to out sourcing, only 90% have found new jobs. This represenrts 10% or 200,000 people who are no longer paying into Social Security.

So, the problems concerning the Social Security Trust Funds are much more than what you are being led to believe.

The adminstration can state that 2 million jobs have been added to the economy over the last five years, but if we have lost 2 million higher paying jobs to out sourcing overseas....what has been the net gain in jobs for the economy, ZERO. The problem is very simple. There ARE less people paying into Social Security because there has been NO real increase in JOBS in this country ! The Social Security problem verifies this.

The solution is simple....
The country need to increase its' overall work force and STOP outsourcing jobs overseas !

This has nothing to do with Republicans or Democrats, because frankly, they are all guilty of allowing this to occur. There has been NOTHING good that has come out of the outsourcing of over 2 million jobs over the last four years.

Additional Findings 1937 - 1997

Collected Social Securtity Taxes: 4 trillion, 880 billion dollars
Interest Earned In Trust Funds: 302 billion, 100 hundred million
Average Interest Yield for 60 years on funds: 5.460%
Payments received on taxed benefits - 1966-1997: 64 billion 828 million
Payments received or paid to the General Fund: 13 billion, 997 million dollars
Transferred to the Railroad Retirement Trusts: 64 billion, 693 million dollars
Adminstrative Expenses: 43 billion, 155 million
Benefits Paid: 4 trillion, 563 billion dollars

Trust Funds have been poorly managed.

If funds collected had earned an average rate of return of 7.00% for the sixty years instead of the poor return of 5.460%.
( this could have been accomplished by investing in other securities, housing loans, stocks, etc.)
An additional 371 billion dollars would have been earned in interest income.

At these levels of earnings, this would have created an additional surplus of 100 billion per year, allowing for current collections and paying benefits with cost of living adjustments.

This would have brought the current amount in the funds to approximately:
1 trillion, 283 million dollars in ten years.

Interest Income on 1 trillion 283 billion dollars at 7.00% would be approximately:
66 billion 333 million dollars annually instead of the poorly managed 40 billion per year that was seen in 1997.

This interest income would account for 20.98% of the current benefits paid at 1997 benefits paid of 316 billion, 257 million dollars.

Adding additional earnings that could have been made, with the surplus, would have brought the funds in another ten years to: 1 trillion, 961 billion dollars in surplus.

Interest income on this surplus amount at 7.00% would amount to 137 billion, 280 million annually, or 43% of the benefits paid instead of present earnings of only 12.72% of benefits paid.

The interest earnings projected above at 7.00% is a low conservative amount of return. This return would have been much higher if the funds had been invested in a much diversified investment portfolio and the fact the the Government has been "spending" the Social Security finds since 1968 and putting I.O.U.'s in place of the "cash". A return of only 5.460% for sixty years is what the trust funds have actually earned which by any definition is not represented of the higher returns that have been seen in investment markets, the Dow, or other investment areas during those 60 years.

Write your Senators and Congressmen today to take the social security funds out of the General Fund, and that the funds need to be managed and invested more wisely

Is This The Huge Problem...
That NEITHER Party Want To Talk About?


Because talking about this and disclosing these totals will force Congress once and for all to take up the "real" issue of a uniform medical care coverage plan for all citizens and that ALL would have to pay something for it, even if it was only $20.00 a month if that is all they could afford.

In 1965, changes to the Social Security Act established the Medicare Program to provide medical and mental health services for individuals and families with low incomes, ( includes immigrants who do not have legal residency). It includes all states, however, it also includes the terrotorities of Puerto Rico, Guam, North Mariana Islands, American Samoa and Virgin Islands.

The funding for this program would come in the form of "grant funding" from the Medicare Trust Funds. "Grant" meaning never to be paid back!

By 1980, 28.6 million persons were receiving benefits.

In 1995, there were more than 36 million persons receiving Medicaid services with a total of $159.5 billion dollars paid out in 1995 for Medicaid. Medicaid cash outlays reached $148 billion annually or 36% of total Medicare disbursements. Total actual Medicare expenditures is only $286 billion, not the $403 billion that has reported. These totals are never reported separately so you can see what the actual costs of Medicaid is. It is too keep you in the dark!

In 2001, more than 41.4 million persons are receiving benefits at a cost of over $162 billion annually, or approximately 40% of the Medicare expenditures.

And it will get worse because of the influx of illegal immigrants into this country who do not have residency.

This explains the difference between Medicare and Medicaid

In the State of the Concord Coliation 2001 Report to the President, it was stated that by 2040, 80% of Federal outlays would be going to Social Security, Medicare and Medicaid. These same warnings have been coming from the Congressional Budget Office since President Nixson's presidency, however they've been ignored."

In 1997, there were those in Congress that tried to get Medicaid reform, but the Republican controlled Congress refused to address the matter.

Financial Statements, 2003

And the expenditures of going to sky rocket in the years to come. By 2015, it is estimated that Medicare/Medicaid will reach an all time high of $1.2 trillion dollars a year, 42% of this, $480 billion a year will be for Medicaid persons receiving benefits. This is what has been "liquidating" the Social Security Funds and is causing them not to be fully self sustaining.

The Time For Health Care Reform Is Now
Not Social Security Reform!

Congress needs to address a National Health Care program for all and take Medicaid spending out of the Social Security Medicare funding.

This explains who qualifies for Medicaid

Who Administers Medicaid? - Centers for Medicare and Medicaid Services

Have illegal immigrants who do not have permanent residency also put a strain on Medicaid, which is paid out of the Medicare funds? Yes and this is wrong. Medical care for illegal immigrants should not be paid out of the Medicare Social Security Trust Funds.

Why did we allow out politicians to start this practice? We are the only ones to blame. But we can do something about it by writing our Congressman to stop this practice NOW ! Payment for medical care of illegal immigrants should be paid out of the General Fund and accounted for separately. I can tell you the reason why our politicians have not done this. They don't want you to know how much of your tax dollars are being paid out for medical care of illegal immigrants. How much was it last year? No one really knows? Now let me ask this question?

How do you feel about not knowing how much of the Medicare runfs are paying for illegal immgrant healthcare under Medicaid, especially when over 45 milion Americans are without health insurance of any type? I think it is time to replace every politician in Washington this next election in 2006.

The Solutions -

First and foremost, every politician in Washington need to start telling the truth about this issue. They need to present the "real facts" without distortion. The facts are. The Social Security Trust Funds are viable through 2052. After that a 22% reduction in benefits would have to take place for it to remain solvent. I question these projections as being high because as you can see with the data provided earlier, the projected collected social security taxes have been low in comparison to what actually has been collected. So, someone in Washington needs to have an true and accurate accounting done to come up with more accurate estimates in my opinion.

Second, the U.S. must increase its overall work force. Yes, part of the problem is the huge increase in baby boomers who will be retiring in the next few years, but the other problem is as stated, the outsourcing of jobs. The U.S. cannot sit here over the next fifty years and basically have a ZERO net gain in jobs, because that is what has happened the last five years. A ZERO net gain in people actually working and paying Social Security taxes.

The annual increase adjustment needs to be looked at carefully. Presently, Social Security receipents receive an increase each year. This needs to be changed. If this was cut in half over the next fifty years, by doing this one simple adjustment would extend the fund approximately another 30-35 years, or to 2072 without any other adjustments.

There are several other things that can be looked at. Some are:

1: Raising the retirement age.

2: Raising the payroll tax each year to adjust to inflation and the GPI index. This would be a small increase of less than 1/4 of 1% a year.

3: Investing part of the funds into city/county bonds for water/sewerstreet improvements.

4: Investing part of the funds in (1) or (2) long term growth Grade AA bond markets, but not the stock market.

5: Investing a small part of the Social Security Trust Funds for home mortgages. The money would be "loaned" to either Fanny Mae or HUD.

6: Changing the calculation method used in calculating the retirement benefit. Change to an overall calculation of what is invested, total dollars contributed by employee and employeer time the net earnings percentage each year the funds have earned. This amount would be "added" to the individuals account annually. As the balance grows from year to year, the reitrement benefit would be calculated on a surviror benefit of 20 years, or the average death index.

7: Changing the Board of Trustees of the Social Security Trust Funds. Should members of any President's Cabinet be the Trustees? I don't think so. The Trusteees need to be private individuals appointed by Congress. These are Trust Funds for the people and should be governed by private citizens, not Cabinet Members.

8: Take Medicaid funding out of Medicare. Expenditures for Medicaid not to be paid out of Medicare Trust funds.

9: Congress must address a National Health Insurance Plan for all Americans. We can no longer ignor this very serious problem!

10: We need to close the borders to Mexico. American can no longer pay for the health care of their immigrants coming over the border.

One thing needs to occur. Politicians must begin to be truthful about the facts and what truly needs to be done and not make this into a political agenda like so many of the radio talk show hosts are doing. And be careful of the information that these radio talk show hosts are giving you. It is not accurate. In this article, you've seen the "real" facts as recorded by the various government agencies.

This Should Not Be Done

The privatization of the Social Security funds with so called personal accounts should not be done for many reasons. Too many lower income people who cannot "save", depend on this for their retirement. "Saving" in a personal savings account under Social Security with exposure to bond and stock market risk would put in jeopardy this lifeline for these lower income people. Nearly 40% of American workers cannot "save". The live paycheck to paycheck. With the recent episodes like ENRON and WORLDCOM who "sold" bonds that became worthless on the market, this explains why this should not occur.

Most importantly, there are those looking at over $1 trillion in fees that could be made from this privatization. The bond sellers and stock market managers are watering at the mouth over this.

Over the course of 50 years, fees could be in excess of $1 trillion dollars that such agents would make in the administration of these accounts. This is $1 trillion that could be put towards streaming the overall Social Security operations to reduce the high and outdated operations cost. The suggestion of privatization Social Security is not a sound fiscal decision. To me, this is nothing but a "political payoff" to those that contributed heavily to candidates who were running for office.

If Social Security is privatized there are other issues that cannot, must not be pushed aside.

What will happen to the widows with 2-4 children when there husbands die at an early age? Presently under the system, those children and the wife would receive survivor benefits until each child reaches the age of 18, and in some cases they can collect it until they are 21 if in college.

In addition, presently, there is disability insurance that a percentage of the social security taxes goes towards. What happens if a single mother of 2 gets severely injured in a car accident and can no longer work? Under the present system, she would be entitled for benefits as long as she is disabled. Or what about the father that gets severely injured and cannot work. If provisions are not kept for these people, you will see such growth of the homeless this country has never seen. If that what this society has become? Uncaring?

I am asking these hards questions because these are the other questions that this society must not only look at, but must also simply accept. When a society no longer cares for the widows or orphaned children like those that the presente Social Security program take care of, that is when the society becomes a non-caring selfish society.

The Social Security issue is not an issue that you as an American can afford to sit back and take a back seat on. You must let your voice be heard in Washington. You need to contact your elected officials and say NO to privatization of the Social Security Funds. Tell them instead to correct the wasteful billions spent in outdated operations. Tell them to have the funds managed better open to other types of investments like AA city and state bonds investments. And most importantly, tell them you want the Social Security Trust Funds taken out of the General Funds and not to be included as an asset in the Federal Budget so that the "true" deficit is seen.

The projections that are being given of what it will cost to "start" this privatization would be an initial $750 billion. By the time all accounts are converted over, ( not those retiring within the next 20 years), but in ten years will cost an estimated $2 trillion dollars.

What I find amazing is...this $2 trillion is nearly, ( prinicipal + interest ), of how much the U.S. Government owes the Social Security Trust Funds in cold hard cash. Instead, the government has been spending the cash since 1968 and putting I.O.U.'s in its place. Presently, this administration is spending every day the $500 million a day that are Social Security Trust Funds. The reason case you have not figured it out...the U.S. Government is BANKRUPT, not Social Security. The U.S. Government has no "actual" cash reserves, is actually runs in the "red" every day and this is why the government has to use the Social Security cash to keep the government running. Hello...what's wrong with this picture I ask you?

Does the present Social Security System need cleaning up and correcting? Yes, that is a given. But not the way that is administration is suggesting.

The plan is to start with setting aside up to $1,000.00 of younger generations Social Security taxes into a private account. The truth is, this account will not earn any more than the average rate of return that the Social Security Trust Funds have earned over the last 60 years after broker fees and adminstration fees. The difference is that bond and stock brokers will be making anywhere from 1.5% to 2.3% in administration and commission fees off those private accounts, anothers words, $15.00 to $23.00 per $1,000.00 account..... times how many hundreds of millions of acounts? I think you know understand, or at least you should, who this is really going to benefit from these private accounts. It sure is not going to be the "little" guy, the younger generations of 20 and 30 somethings. I guess it's pay back time for another corporate segment that has contributed heavily to political parties. Don't trust either party to solve this issue properly. You are going to have to force both sides to start telling the truth with the "real" facts and to find the permanent "correct" solutions to fix Social Security. Not ones to make trillions for "buddies".

If you sit back and do nothing, I don't want to hear anyone crying over this in ten years with:
"How did we let this happen".

Hello America - It Is Your Dime - However In This Matter - It Is Your Trillions

One last very important news update that could effect the civil liberties of all.

A new bill that has been introduced in the HOUSE would put Homeland Security above the law.

On January 26, 2005, Rep. Sensenbrenner introduced the REAL ID Act of 2005 (H.R. 418).

In the name of homeland security, it includes a number of items changing immigration laws, use of drivers' licenses, etc.

But -- most overlooked -- is Section 102 of this bill. It would empower the Secretary of Homeland Security to suspend any and all laws in order to ensure the "expeditious" construction of a set of barriers and roads south of San Diego, to keep illegal immigrants out. It also would prohibit ANY judicial review of the Secretary of Homeland Security's decision to suspend any law.

Quote from the HR418 BILL:

"NO JUDICIAL REVIEW- Notwithstanding any other provision of law (statutory or nonstatutory), no court shall have jurisdiction-- to hear any cause or claim arising from any action undertaken, or any decision made, by the Secretary of Homeland Security."

While the law the bill references mentions barriers and roads "near San Diego," it does not appear to be (technically speaking) limited to that area -- but to any barriers or roads "in the vicinity of the United States border."

Both of these issues needs your attention immediately.

Do yourself a favor.

Go to the links above pertaining to the "real" facts about Social Security and go the HR418 BILL and read this deceptive bill to take your civil liberties away without due process. And then contact your elected House of Representative as soon as possible in Washington and say "NO" to HR418 and "NO" to the Social Security Privatization and to REFORM Medicaid and start the CREATION of a National Health Insurance Program for those without insurance which would include these people. That way, expenditures for the General Operation of the United States Government will no longer be paid out of Social Security Trust Funds, real Health Reform will be started in this country, including Medicare.

In addition, something MUST BE DONE about truly increasing the number of jobs in this country to increase the amount of Social Security being paid in by more workers. We cannot sit here and continue with a ZERO net gain in jobs and keep losing jobs that this country has had for decades. That is the real problem and make your politicians in Washington accountable for what the real problems are - not what you are being told.

Here is a link to find your House of Representative by state and contact information for their office.

Be Careful and Have A Nice Day!

~ David Lawrence Dewey

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David Lawrence Dewey
February 5th, 2005