Social Insecurity

If you are one of those people who like to scream "I PAY MY BILLS!" and your sum total income is from Social Security or disability, you don't pay your bills. Taxpayers do. If you use any part of the Social Security program to pay any of your bills, again, taxpayers are paying your bills for you.

Now before some of you get excited and jump my case about Social Security and Medicare being something you paid for, get this:

https://www.forbes.com/sites/patrickwwatson/2018/07/09/you-havent-earned-your-social-security-its-welfare/

https://www.fool.com/retirement/2017/03/27/the-average-american-pays-this-much-in-social-secu.aspx

Still don't agree? Then explain why 24 percent of the federal budget goes to Social Security programs. https://www.cbpp.org/research/federal-budget/policy-basics-where-do-our-federal-tax-dollars-go That's money the federal government is borrowing, BTW.

CRUNCHY

Lets get crunchy with some datat. Running the Motley Fool numbers:

$712 a year paid into Medicare.

Person retires in 45 years.

$32,040 paid into Medicare.

$32,000 average hip replacement cost.https://www.lendingpoint.com/blog/hip-replacement-surgery-what-it-costs-and-how-to-pay-for-it/

One hip replacement wipes out everything you "invested" into the Social Security Medicare program. After that, you are tapping what others put into the system.

If you paid for the benefits you receive, then quit taxing the rest of us. The reality is, those on various Social Security programs have made slaves of the rest of us. How do you explain it if I am wrong?

Gettin' crunchy again.

$2,463 (average) paid into Social Security.

Person retires in 45 years.

$110,835 paid into Social Security (Disability numbers are far worse).
$17,650 average annual benefits paid out.

In 10 years, you tap the system for $176,500.

Again, you are tapping what others put into the system. No? If Social Security taxes stopped right now, the system could stagger along for a couple of years, maybe. Then it would be out of money completely. It must continue to have an influx of funds to stay around. Can you say Ponzi Scheme?

https://www.fool.com/retirement/2016/06/20/what-would-happen-if-social-security-were-dismantl.aspx

https://www.fool.com/retirement/2018/07/17/heres-what-would-happen-if-congress-paid-back-all.aspx

Note - this link contains an error of fact. "In reality, only American citizens who've earned the prerequisite 40 lifetime work credits are able to collect a benefit." You can collect Social Security with fewer credits, especially if you apply for the disability side.

INVESTING

Investing Social Securit proceeds? Yes. https://www.cbpp.org/research/social-security/policy-basics-understanding-the-social-security-trust-funds However, "Starting in 2020, Social Security will begin to draw down trust fund reserves to help pay for benefits." There's a reason politicians with sense are proposing hikes to Social Security taxes or cuts to benefits.

Further, that investment is considered extremely secure, but it doesn't have great returns.

This webpage does the math. 

http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histretSP.html

In short, everything you paid into the Social Security system and all the proceeds from the investments are STILL wiped out in short order. One hip replacement, your Medicare contribution is gone. Medicines, doctor visits and more quickly wipe out the returns on investment.

And on the topic of investing, where does the Social Security Administration invest that money? Into Treasury Securities. https://www.cbpp.org/research/social-security/policy-basics-understanding-the-social-security-trust-funds Yes, SS earns interest on these investments.

Who pays the interest? Taxpayers. https://www.investopedia.com/terms/t/treasurybond.asp "Treasury bonds are part of the larger category of government bonds, a type of bond issued by a national government with a commitment to pay period interest payments known as coupon payments as well as the principal upon maturity." Someone will now say "GOVERNMENT PAYS THAT INTEREST!" And where, precisely, oh Sage of Our Times, do you think government gets the money to pay the interest?

Taxpayers.

DISABILITY

The next time I hear someone under the age of 60 who collects disability and says "It's my money because I paid into the system," I will have to walk away. My study of the Stoics is pushing me away from angry reactions; angry is all my fault and no one can make me mad but me.

However, coping with monumental stupidity is something I am still learning. Those on disability probably - I have not researched this, just running on what I see - are an even greater drain on the Medicare part of Social Security.

In short, you ain't paid enough to cover what you are taking. You are pulling from taxpayers like me who are supporting the system. You may be paying all your bills, but you are using my money to do it.

Don't believe me? Cool. You crunch the numbers and prove me wrong.