Last week I saw an elderly gentleman with a No Socialism bumper sticker. I had to smile, knowing that he is one of the primary recipients of socialism through Social Security and Medicare. The average citizen contributes a maximum of $125K in social security taxes over 40 years. This investment is increased by employer contribution and inflation…but even when making favorable calculations, after 13 years of retirement (and for most it is less), we are relying on Government Socialism. The average Medicare benefit we receive is 2 ½ times our contribution.
The point of this is NOT to advocate eliminating or reducing Social Security benefits, but it is to acknowledge them; and be open to extending this largess to others.
Helping others is a core agenda of the Democratic Party. And since the Democratic Party has won the popular vote in 7 of the last 8 presidential elections, it is clear that the country agrees.
Democrats owe their success to a coalition of youth, African American, Latina women, and college educated white voters. This coalition believes that the United States needs to take a larger view of America’s needs.
Today, the younger generations are shouldering a greater burden than we carried. College tuition is so expensive that many students graduate with significant debt. Affordable childcare and health care are hard to find. The Affordable Care Act eliminates pre-existing condition restrictions but remains expensive. The environment is under siege and this generation will pay the price for our refusal to act.
Due to discrimination, the African American population desperately needs changes in the criminal injustice system, social services support, and well-paying jobs in their neighborhoods.
The immigrant population requires compassion and legislation to get us out of this mess.
Good paying manufacturing and service industry jobs are not available to many, since most have moved offshore to take advantage of tax laws passed by Congress.
And everyone needs relief from COVID 19 fall out.
Sounds scary. Conservatives are justifiably concerned about Federal Budget deficits.
But it depends on how we ask the question. Rather than ask “Can we afford these benefits?” why not change the question to “What can we do to fund these benefits?” And equally important, “How can we prevent them from becoming entitlements.”
Using this perspective, it is easy to find opportunities within the Federal Budget. Elizabeth Warren proposed a tax plan that would impact only those with over $10M net worth.
Congress needs to pass legislation that incents companies to retain and return jobs in America; and legislation that rewards employers who improve the environment.
We can also get cost savings and revenues from thinking differently. Here are two: reform the criminal injustice system and decriminalize and tax marijuana.
The United States has the highest incarceration rate in the world, at 655 per 100,000 people (20% for nonviolent drug possession); while our Canadian neighbor incarcerates 114 per 100,000. Due to a racial caste system, this disproportionately impacts the African American population. Reducing the prison population could save as much as $60 B annually.
Here is another: legalize marijuana (now legal in 16 states) and collect $10B in Federal excise taxes on it.
See how easy this can be when we use a problem-solving mode rather than a “socialism for me but not you, perspective?”
But before I close, I would like to give a “shout out” to Republicans who recognized that the country was more important than their agenda and voted to bring back sanity to the Presidency. The nation is also indebted to Trump supporters who accepted the election results and refused to demean our electoral process. I want to sincerely thank you all for putting America first.
And Democrats need the conservative voice that recognizes the value of American business, fiscal responsibility, entrepreneurship, and the importance of financial markets.
I know that this is naïve. Both parties have legislative leaders who are more concerned about their party and their personal power than the country. Lobbyists are firmly entrenched.
But Democrats have promises to keep…and rather than make this a burden or an obstructionist Congress, wouldn’t it be great if we saw this as an opportunity. Democrats and Republicans, let’s roll up our sleeves.
We have work to do.
Angela Rieck, a Caroline County native, received her PhD in Mathematical Psychology from the University of Maryland and worked as a scientist at Bell Labs, and other high-tech companies in New Jersey before retiring as a corporate executive. Angela and her dogs divide their time between St Michaels and Key West Florida. Her daughter lives and works in New York City.
Glenn Baker says
I don’t know where her math comes from but I paid along with my company much more than I’ll ever get back from SSA.
And the same amount of money paid in under control of my financial advisers would be much larger (with-out the government admin overhead).
I also pay my share of Medicare now and in the past which is the original government healthcare plan. I had no choice in being required to participate. Another government program not asked for or needed by everyone.
Angela Rieck says
In convenient facts, are still facts, this data comes from economic analyses that I reviewed. I didn’t do my own analysis and I am not sure if the average contribution is a median or an average (which matters when you add in beneficiaries, such as full-time homemakers, who did not directly contribute to Social Security). While it is true that those who are in the 60’s will have contributed (adding employer contributions and interest) almost enough for Social Security; we are still significantly “under water” with Medicare. But my question really is, if we can understand this, are we willing to recognize the needs in others.
Angela Rieck says
Re-reading this, I fear that I may have sounded dismissive of full time homemakers. My mother was a full time homemaker and I will always be grateful for it.
DANNA MURPHY MURDEN says
Ms. Rieck,
I a have a different opinion from you. I am not arguing your numbers because I do not know the correct numbers but I do know this having owned two business with my husband we were self employed. No employer contributed one penny towards his SS or Medicare. There was no unemployment insurance paid, no sick pay, no vacation pay on and on. Oh and don’t let me forget get NO MEDICAL INSURANCE OF ANY KIND! My husband has had RA since he was 19 now how about that one for a precondition! Any insurance we got was higher. My accountant said back in the 1980s that no one paid the premiums we did. We incorporated our business for health insurance reasons. So we were a company and could get lower premiums. He retired at 56 SS Disability, applied 3 weeks after he sold his business and received his SS in less than 7 weeks. Every one said it was unheard of, Doctors said he had 37 years of medical records. Now for the real story I doubt you are aware of unless you have been in this situation you can not get Medicare for 2 years when you retire from a disability. So I kept the Corporation going to keep our health insurance
$1890.00 per month for 2 years ( that will put a dent in you savings). Then when he did get on Medicare and went to get that good ole supplemental policy well guess what that precondition was still there to haunt him and we paid more for that till he reached 65 and I reached 65 combined. He has been retired 14 years now and hasn’t put a dent in what he paid in to SS. And Heck I would just love to have the money back I paid in Health Care. So don’t tell me I am living Socialism because I know my numbers I was the one who keep the books those business.
Angela Rieck says
It sounds like you have had a significant health care burden and I can empathize. My husband and I paid in excess of $2500 per month in premiums for health insurance for decades. But the money that we paid in premiums for health insurance went to the insurance company and did not go to the Government or Social Security. But the disability benefit that you husband had to take did come from the Social Security pool, so, by now he may have already gotten back his contribution. I am not saying that you didn’t contribute or deserve what you are getting, it is just that we need to recognize that we are getting a benefit from the government beyond what we not paid (especially Medicare)…and I am hoping that we open our hearts to others who are in need. (BTW: The supplemental policy is also an health insurance that you pay, that does not go to the Government, but to the Health Insurance company.) It can be confusing!!!
DANNA MURPHY MURDEN says
You didn’t listen to what I said about what we paid in SS, he hasn’t put a dent into what he paid in. And retiring at 56 he can’t live long enough to regroup all the money he put in because he paid it all being self employed. Your numbers may be right for someone who works for a paycheck but not SELF EMPLOYED they pay everything. And again he can’t live long enough to get get back what he paid even retiring at 56 disability. As I said I did the books I know the numbers and we are not living off of your so called SOCIALISM! And I am not one bit confused by it all I understand where the money goes, to health insurance co and to government. I have had a health insurance advisor for so many years I can’t remember. You take your numbers and that’s that but people like you see black and white you don’t see the gray areas where a lot of live. If you are from Caroline County there are plenty of farmers, watermen, truck drivers on and on with other occupations paying all of the money towards SS and Medicare without no one else contributing a dime. You can’t seem to understand that!
Margie Patrick says
I think you are confusing the maximum taxable income amount per year with what you are calling a maximum contribution of $125,000. Please go to the social security website and research this. The maximum taxable income for 2021 is $142,800. The maximum employee rate for 2021 is $8853.60. The employer would match and pay $8853.60. Self employed people would pay the full amount of 12.4% of their income up to $142,800 which is $17,707.20 for 2021 only. We pay much more than $125,000 towards our social security. Medicare is taxed at 2.9% for self employed people or split equally for employees and employers. There is no limit on Medicare contributions. This information is very easily obtained on the social security website. Maybe you should check your facts and figures before spouting untruths. I have never heard of The Social Security Administration contacting anyone and saying you have paid in full,no more contributions. Have you? Should we even discuss what happens to the money of those that die before they collect or after they collect a small portion of their contributions? That money stays in the system.
DANNA MURPHY MURDEN says
Thank you