| numonex said: Axe health: Medicare and cut Social Security? Programs that help the lower classes and people who can not afford private health insurance. Bear in mind most of the people are not multi- millionaires who own yachts, huge mansions and Rolex watches, etc. Military spending would be getting cut because that is waste.Withdraw the troops and cut the military budget in half would help reduce government spending. Military spending is WASTE. |
Do you even know how our medicare and social security work?
Every American puts in 8.5% of their paychecks, up to $100,000 for social security. The money is not saved back for this person, but instead is then given to a person currently on social security, meaning its a pay-as-you-go system. The issue with the system is that its not built to give anyone a return on their investment.
As of today, social security actually gives out more money than it takes in, due to demographic changes in the work force. In the 1950's, there were 15 workers for every 1 person on Social Security. Today, its 3:1 and within 15 years, it will be 2:1. This will collapse the system.
As for your argument that it 'helps the poor' is a bold faced lie.
Poor people, as well as middle class are forced to contribute to social security at a rate of 8.5%. Meaning that for every $10/hr you earn at a job, $0.85 is taken away from you and given to social security. The problem with this is that you do not earn interest on the money taken from you. Social security revenues accrue at inflation, and little more. When you compare that to ANY other system out there - state retirements, 401k's, IRA's, anything else, you are having money taken from you and mal-invested. This is hurting our poor and needy, as they could retire much better through any other system. My dad is on social security, and I know this to be the absolute truth. He gets $800/mo from SSI, and had he of been able to invest it, would be making far more to live off of.
Medicare/Medicaid is the same way. About 4.0% of your check is taken for medicaid and medicare. In the case of medicare, you become eligible at 65 *if* you qualify. Medicaid is *if* you qualify at younger ages as well. That is another $0.40 taken out of your check, for a grand total of $1.25/hr taken out of a person making $10/hr in the US.
Like with Social Security, a person could nearly pay for a private health care plan that they would get today, regardless of age or need for the same price as being forced to invest in the government programs. That would help out a lot more people that need it than whats currently in place.
If the government stopped taking so much money from people via payroll taxes, and instead required them to invest a certain portion - maybe 5% of their annual earnings - the poor would have more money to live off of, equaling a higher living standard both for themselves, but for everyone else including the middle class.
Back from the dead, I'm afraid.
