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Liberal Utopia Inching Closer: Social Security Expected to Run Out of Money Sooner Than Expected

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Social security

If the novel coronavirus did nothing else, it gave Liberals a blanketed excuse for their horrendous policies. According to an annual government report, the Social Security trust fund most Americans rely on for retirement will be out of money in as soon as 12 years.

CNBC reports the 12-year prediction is “one year sooner than expected” and “the outlooks, aggravated by the Covid pandemic, also threatens to shrink retirement payments and increase health-care costs for older Americans.” Essentially, everything Democrats were already accomplishing, sans their lucky COVID-19 excuse.

The “financial outlook for Social Security and Medicare, two of the nation’s preeminent safety net programs, has deteriorated over the past year as Covid hastened retirements and caused a contraction in the size of the U.S. labor force” reports CNBC. Again, the result of Democratic policies and horrific government overreach under the guise of saving the world from the coronavirus.

CNBC reports:

The Treasury Department oversees two Social Security funds: The Old-Age and Survivors Insurance and the Disability Insurance Trust Funds. Those programs are designed to provide a source of income respectively to former workers who have retired at the end of their careers or to those who cannot work due to a disability.

Officials said that the Old-Age and Survivors trust fund is now able to pay scheduled benefits until 2033, one year earlier than reported last year. The Disability Insurance fund is estimated to be adequately funded through 2057, eight years earlier than in the report published in 2020.
Though the two funds are separate under law, the Treasury Department said the hypothetical combined funds would be able to pay scheduled benefits on a timely basis until 2034.

Senior administration officials said in a press briefing Tuesday afternoon that a spike in deaths among retirement-age Americans in 2020 helped keep the programs’ costs lower than projected. They added that the ultimate, long-term impact of the coronavirus is less clear as costs and revenues return to their extended forecasts.

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3 Comments

3 Comments

  1. Mia

    September 6, 2021 at 10:41 am

    Why do they act as if this is free money when WE pay into it abd its OURS already?? Vote Dems OUT!

  2. Linda L Belthius

    September 15, 2021 at 3:36 pm

    Just waiting for my age group to die off. My children and Grandchildren are going to pay the price for the Dems arrogance…

  3. 2tellthetruth

    September 16, 2021 at 10:49 am

    #VOTETHEMOUT! I VAPE AND HAVE FOR 11 YEARS. NOW THEY WANT TO TAX NICOTINE LIQUID, SO IT’S TOO EXPENSIVE TO QUIT SMOKING! UNLESS BIG PHARMA PROFITS YOU CAN’T QUIT SMOKING THIS WAY UNLESS YOU PAY 60% VAT TAX. IT’S THE SAME GAME, THE SAME PLAYERS! DEMOCRATS THINK THEY ARE ENTITLED TO OUR MONEY, LIVES AND EVEN OUR COMINGS AND GOINGS.

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Economy

Biden’s Fed Chairman: Solving Inflation ‘Highly Likely To Involve Some Pain’ For Americans

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On Wednesday, Federal Reserve Chairman Jerome Powell said that solving the inflation crisis is “highly likely” to cause pain to Americans but that it would be less painful than not addressing inflation.

During the European Central Bank forum, host Francine Laqua asked Powell, “If you’re speaking out to the American people to try and help them understand how long it will take for, you know, monetary policy to go back to something that resembles normalcy … what would you tell them?

“I would say that we fully understand and appreciate … the pain people are going through dealing with higher inflation, that we have the tools to address that and the resolve to use them, and that we are committed to and will succeed in getting inflation down to two percent,” he responded.

“The process is likely, highly likely to involve some pain, but the worst pain would be from failing to address this high inflation and allowing it to become persistent,” Powell added.

Powell’s comments come as inflation has reached the highest rate in more than 40 years with prices rising 8.6% from May 2021 to May 2022, according to a new report from the Bureau of Labor Statistics.

In order to bring down inflation, the Federal Reserve increased the interest rate by 0.75% earlier this month – the highest increase since 1994 – and warned of additional increases in the interest rate in the future.

“The three-quarter-point hike brings the federal funds rate to between 1.5% and 1.75%. The federal funds rate dictates what it costs for banks to borrow money from each other. And, generally, higher interest rates mean it’s more expensive for consumers to get a mortgage, obtain a loan to buy a vehicle and to carry a balance on a credit card,” NBC News reported. “The expected effect of these changes is that consumers will spend less and the heightened demand for goods — one of the drivers of inflation — will slow down.”

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Economy

Biden’s Fed Chairman: ‘We Now Understand Better How Little We Understand About Inflation’

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Joe Biden

On Wednesday, Federal Reserve Chairman Jerome Powell defended the Biden administration’s failure to predict the current inflation crisis, saying that the record high inflation levels helped the Biden administration “understand how little we understand about inflation.”

During the European Central Bank forum, host Francine Laqua asked panelists, “Hindsight is a beautiful thing, I know…but going forward…how do we need to look at inflation differently? So, for example, in the U.S. — the stimulus. Did we circulate the impact this would have on inflation?”

“I think we now understand better how little we understand about inflation,” Powell responded.

“That’s not very reassuring,” the host noted.

“No, honestly, this was unpredicted. I was looking at the time of our June meeting one year ago, of the 35 people who filed with a survey of professional forecasters, 34 of them had inflation below four percent for the last year. And of course, it was way above four percent,” Powell said.

It should be noted that many economists outside of the Biden administration did predict the inflation crisis. Larry Summers, who served as Treasury Secretary under the Obama administration, warned in May 2021 that President Biden’s $1.9 trillion American Rescue Plan would greatly increase inflation rates. Summers said that the bill had “very substantial risks on the inflation side.”

Additionally, in June 2021 Larry Summers told PBS’s “Firing Line with Margaret Hoover” that the Biden administration’s policies had driven inflation.

“If you looked at how the economy was coming into this year, we had total wages and salaries coming to people were 20 or 30 billion dollars a month lower because many of them had to be home because of COVID and the economy was slowed,” Summers said. “But we put in a stimulus that was putting into the economy more than 200 billion dollars a month. And so when you take a hole and you overfill it, you’re likely to have problems.”

“And I think we know that inflation’s like a lot of other things, it’s a lot easier to prevent than it is to cure,” Summers continued. “And I think the credibility of policymakers, including those at the Fed, is much easier to preserve than it is to restore.”

He later added, “The main risk is that our economy’s going to overheat. And then once it overheats, it’s going to be hard to put out the fire without doing a lot of damage and causing a lot of problems. And so I’d like to see us shift towards a policy concern.”

Powell’s admission that the Biden administration does not understand inflation comes just weeks after Treasury Secretary Janet Yellen similarly said that she didn’t “fully understand” how inflation occurred and admitted that she was “wrong” about inflation when she said in 2021 that it was just a “small risk.”

“Well, look, I think I was wrong then about the path that inflation would take,” Yellen said. “As I mentioned, there have been unanticipated and large shocks to the economy that have boosted energy and food prices and supply bottlenecks that have affected our economy badly that I didn’t — at the time didn’t fully understand. But we recognize that now.”

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