Social Security Restoration

Now that the President has outlined his priorities the Republican led congress is prepared to go on the attack. Social Security is one of the first governmental programs that will face an uncertain future with this President and Congress. Many economists argue that one of the best ways to stimulate the economy is to put more money in more people's pockets. But, with the Republican mindset lately what they propose is draconian cuts in the programs that affect millions of Americans. Social Security is going to be one of the first programs that will face a curtail test. Will it survive and allow our seniors to be able to keep pace with the rising cost of living? Good question. But like so many other initiatives the President has laid out, these plans have yet to be realized. And, with congress the way it is more doom and gloom will most likely be the reality for our seniors and the disabled. What will it take to secure Social Security now and for the future? National Economic Reform's Ten Articles of Confederation when implemented will effectively ensure our seniors and the disabled will have the financial means for them and for generations to come.

The idea of how to restore and secure Social Security for generations to come is not a new concept, but to actually achieve the results needed will take bold and decisive action. What has happened to the United States over the course of the past 40 years is a lesson of how to undermine the majority of United States citizens ability to prosper and to achieve the peace of mind that should be automatic by being an American. Sure, technology has far surpassed the majority of citizens' ability to use and understand what has been created for the betterment of all. But, in actuality what really has transpired is an almost total collapse of our founding principals of Liberty, Justice, Morality, and Education. Today, the United States is facing critical mass sort of speaking in the direction this country will undertake for the next century. Do we turn and embrace new, bold and decisive actions that will propel the United States into a beacon of hope other countries will want and strive to emulate or do we continue on this self destructive path toward ambiguity and obscurity?

National Economic Reform with it's ten articles of confederations is a direct path toward creating that beacon of hope for generations to come. Restoring Social Security is an internal part of securing the future. To start; this country must determine now how to restore, and create employment opportunities with real living wages for all. There are a lot of factions in determining how to achieve this objective. First is to ensure that Education Reform { another internal part of National Economic Reform } we must address the need to educate our youth on the skills and trades that are necessary for the types of employment opportunities that are now and will be the focus of the economic systems here and in other parts of the world. Next, the United States must address our trade agreements of the past and to restructure them so that corporations will be encouraged to employee Americans in factories here in the United States instead of exporting these jobs. Our trade deficit [another internal part of National Economic Reform] is one of the areas in which this country is failing Americans. Restoring our manufacturing base in the United States is crucial for the national security that only comes when the United States has a strong and growing middle class. The biggest hurdle is NAFTA. The United States must now focus on equal trade agreements instead of free trade with higher tariffs on imported goods from certain countries like China, India, and even Mexico. This will aid in the elimination of most of our trade deficit while at the same time restore balance in our economy by more job creation.

To further restore Social Security ir is apparent that this country needs Universal Health Care [ another internal part of National Economic Reform ] to offset the high cost of healthcare coverage companies now offer to their employees. To increase wages for all and to contribute more to Social Security funding Universal Heath Care will now free up funds so that companies that deduct health insurance from employees wages will be now additional disposable income.

The more people that are employed with real living wages, the more there are to contribute toward restoring and securing Social Security for all. In essence the realization and fulfillment of the "Williams Theory Of Economic Evolution." The United States Congress must change the current policy on early retirement so that more people applying for early retirement at age 62 could still work without any income restrictions that would their incomes. This would be a win win situation because these workers will contribute more toward the over-all social security retirement fund while at the same time contributing more toward their own retirement when they actually do retire. It was last fall that Social Security recipients got their first cost of living raise in their monthly benefit checks since 2009. A minuscule appeasement at best. In fact that raise only amounted to a little over $10.00. When factored in the rising cost of everything else with so many relying on their monthly checks just to get by makes the government look like Ebonezer Scrooge. If that's not bad enough our illustrious "Wizards" in Washington base this adjustment on false assumptions in relation to the actual cost of living today. It is as though they are stuck back in the sixties when it comes to the Consumer Price Index, which measures inflation.

The CPI looks at a number of different types of goods and services that the Bureau of Labor Statistics thinks {there again relying on very false assumptions} what the average household spends and what goods and services they actually buy. The biggest category in the CPI is housing, which makes up roughly 40% of the index. Food and transportation each contribute a little over 15%. The remaining amount is spread across recreational activities, education, health care, and other goods and services. But there again the cost of all these continue to not only fluctuate but increase on a daily basis.

What all this means for most retirees is that the majority often don't fit the CPI profile of so many people who are about to retire or have retired. Many retirees have already paid off their mortgages, and despite still having to cover utility costs, property taxes, maintenance and upkeep, their spending on their housing needs still falls well short of that 40%. To make matters worse is the fact that declining home prices have only benefited those who didn't own homes prior to 2008. This is when the sub-prime mortgage crisis hit. Far from getting any benefit, retirees who own their homes have taken massive losses in their finances. Compounding this financial debacle is that medical care, prescription drugs and other health related expenses place an ever-increasing drain on many retirees' finances. Hospital costs have risen at nearly twice the rate of overall inflation in the past 12 months, and over the longer run, health care has seen huge price increases that are straining government programs like Medicare and Medicaid to the breaking point. Yet, medical costs make up only 7% of the CPI. A far cry from the estimated $230,000-$250,000 that retirees can expect to pay for health-care expenses over the course of their retirement years.

Just when things were bad enough our so called "Wizards" of finance in Washington still are looking to reduce cost-of-living increases in Social Security benefits that are linked to inflation. When that so-called "super committee" met to discuss ways to cut the federal budget, one proposal suggested using what's known as the "chain-weighted" CPI to calculate cost-of-living increases. According to estimates, using the chain-weighted CPI would save $200 billion over 10 years. That $200 billion would come from lower annual raises for retirees' Social Security benefit checks. All the while the cost of living continues to escalate much faster than the information gathered by our bureaucrats in substantiating what they deem fitting expenditures for any Social Security adjustments. But, for now, that proposal doesn't look like it'll become reality anytime soon, or does it? If the Republicans win this battle we can expect more cost cutting that would leave our senior population very vulnerable. This apparent posturing was just the latest in a series of arguments about whether the CPI overstates or understates inflation. As the federal budget becomes an increasingly important issue, you can expect to see more attempts to use the CPI as a way to rein in spending in an opaque but very detrimental way for retirees.

Now, with all the other talk floating around in Washington about Social Security's eminent demise {the year when there will be no money left in the Social Security account} again our most benevolent legislatures keep lamenting about other contingencies and proposals to keep Social Security solvent. This is to counter the blundering and plundering that has been done to one of the most essential safety nets that our aging population has. Now, what is touted as a key element Washington is proposing that the retirement age from 65 be raised to 70 or even 72. Those who want to retire early will have to wait to reach age 65 instead of today early retirement is at 62. That is if these proposals become reality. What they fail to realize is that Social Security as intended depends on wages, lots of wage earners. This means the more people earning more money the more funding flows into the Social Security Retirement fund. What the United States is facing today is an unacceptable unemployment rate. For those still working, wages have decreased when taking into account the cost of living. The baby boomers who are retiring are feeling the strain of limited and fixed incomes now more then ever. Finally for the past 30 years middle class wage jobs have all but vanished. This is the harsh reality facing the solvency of Social Security.

To increase the age limit from 65 to 70 and for early retirement from 62 to 65 won't even come close to solving this crisis. The solvency of Social Security is but a link in the chain of major flaws that continue to drag the United States economy down. The failure to grasp the ramifications of not implementing a single payer Universal Health Care initiative that eliminates the outdated and fraud riddled Medicare and Medicaid programs we have now continues to not only undermine Social Security but our whole economy as well. This is just part of the solution for reviving Social Security. The big picture for rejuvenating the United States economy to the point where this country has a majority of the population working with middle class wage jobs with a ratio of 15% low income level, a 70% receiving middle class wages, 25% in the high income bracket which leaves a 5% poverty rate can be attained by implementing National Economic Reform. Ten articles of confederation that detail and outline the direction this country must follow. We have to remember that nations who tax and spend the most are the ones that thrive while the nations that tax and spend the least most certainly fail. A solvent well funded Social Security is essential for the health and stability of this nation.