Congress Must Stop Treating Social Security as Orphan Stock

Friday, May 4, 2012, AM | Leave Comment

According to thefreedictionary.com, Orphan Stock is a stock that is not often tracked by analysts. This may be because it is not very well known or because it belongs to an industry that is generally performing poorly. As a result these stocks have low demand and often a low price whereas Social Security (SS) has high demand but low price.

Silence is Golden but Why the Silence?

For all practical purposes, Social Security and Medicare Programs have become financial orphans the likes of which has not been seen in recent memory.

The legislative and the executive branches of the government are completely mum about Social Security. Not a single politician talks about it these days.

I bet it will resurface during the debates this year but only till the election is over. Then it will be put on the shelf as an orphan stock for another 4 years. And the cycle will just keep going.

Social Security Administration’s annual report…

Social Security Administration (SSA) has published its annual report for 2012 about the status of the Social Security and Medicare Programs. It does not look bad now but if Congress didn’t do anything to make it better, it will run out of money sooner than expected.

Some experts evaluate, if nothing is done, Social Security will be having humongous problems by 2035.

It’s up to the President to present the bill and Congress to act on it. However, both major parties seem to be at odds with one another. It’s unfortunate that the folks who were elected by none other than the American people can be so arrogant at best and financially ruinous at worst.

Look what they have done to my boy – The Godfather.

The truth of the matter is lawmakers should not delay addressing the long-run financial challenges facing Social Security and Medicare. That’s what the SSA’s own assessment indicates.

I hope I am wrong but there can never be any solution to this problem as long as the folks who have been elected by the people stay in cubicles in their own aisle and not forwarding their friendly hands in mutual respect and understanding to the opposing side.

The opposing side seem to be lepers…

Having lived in the States for more than 40 years, the hand of potential compromise has stayed in each individual pocket. They are afraid they will get the disease of the other side who seem to be lepers that cannot be touched.

In the spirit of bipartisanship which has always remained downhill, both major political parties must take action sooner rather than later. So more options and more time will be available to phase in changes so that the seemingly unseen public has adequate time to prepare.

Mind you no law passed is absolutely perfect. There can be no law that will please every single individual in the land. In case of Social Security and Medicare programs, there will be positive as well as negative effects on folks around the country.

Therefore, earlier action will also help elected officials minimize adverse impacts on vulnerable populations, especially lower-income workers and people already dependent on program benefits.

U.S. Population is getting older, not younger

In some developing and underdeveloped countries, the population is getting younger. The birth rate is quite high and family planning is almost non existent.

The life expectancy in some of those countries is half of that in the United States, give and take a couple of years.

In the United States, the reverse is true. Population in general is aging and living longer. That means the birth rate is way below the line where the equal number of babies born and the number of folks retiring meet.

In the underdeveloped nations, the resources are hard to come by with the overwhelming number of babies coming into existence.

In the United States, there is a two-fold problem. One, where more babies are born to folks who cannot afford and support them. Two, the problem of caring for them when they retire. Social Security checks are their only source of income.

Social Security & Medicare expenditures

According to SSA, Social Security and Medicare Programs are two of the largest Federal expenditures, accounting for 36% of the total expenses in 2011. No wonder some folks want to curb or taking it away from the Government and putting in private hands.

Social Security has two parts to it. One the principal amount and second the interest collected on it.

According to SSA,
Social Security’s expenditures exceeded non-interest income (principal) in 2010 and 2011, the first such occurrences since 1983, and the Trustees estimate that these expenditures will remain greater than non-interest income throughout the 75-year projection period.

In a Nutshell
O Ye, Who are supposedly representing the American people! When you leave home every day for your office, leave your bickering and nagging at home.

You must realize that people of this great nation have sent you into these offices.

If you cannot do anything positive about Social Security and Medicare Programs, you ought not run for the office again.

The American people keep sending the same people to Congressional offices. They don’t realize that in the interest of the bigger national goodness, they must not elect the same folks again if they have not done their job right.

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