There is a tomorrow, and someone has to pay for it

"In 2021, Social Security spent $57 billion more than it collected in dedicated tax revenue and interest on its trust funds. The trustees expect this gap will widen over the next decade, quickly depleting the program’s trust funds until its runs out of money in 2035. At that point, the program’s income will cover only 80 percent of benefits promised to recipients."

 
This is an informative article. If you're looking at retirement with SS benefits to supplement your pension in 10-15 years, you definitely should be paying attention. I have a state teacher's pension so I don't get SS (that would be double-dipping). Did you know that? Nor am I be eligible for spousal benefit if my husband died first. G.W. Bush had planned to work on fixing this but with 9-11 and the war he got sidetracked and I don't think any president since then has even mentioned it. Now with raging inflation, you may need to adjust your spending and saving.

The Social Security Trust Funds | PolicyEd

Workers who are paid not to work--a Biden disaster

Some of you think those economy crippling benefits have stopped. They haven't. If your favorite restaurant closes or shop owner locks the door, it may not be supply chain. It's no one will work when being paid to stay home.

 
"Back in July, the federal government was still paying enhanced benefits to the unemployed—even though many in Washington, including prominent Democrats, were warning that the federal handouts on top of state unemployment payments were creating a big disincentive to go back to work. That extra federal payment, which had begun under President Trump and was extended by Biden last March, finally ended in early September, but other federal aid continues. The IRS, for instance, now pays families a child tax credit that has expanded to $3,600 per child under six and $3,000 per older child. A recent study estimated that this lucrative benefit, if it becomes permanent as some Democrats have proposed, could prompt up to 1.5 million more mostly low-income parents to leave the workforce over the next few years. Meantime, the Treasury Department has told states that they can use some of the $350 billion stimulus money Washington was sending them to support and expand their own unemployment benefits."

https://www.city-journal.org/biden-policy-encouraging-worker-shortages?

Even before the Covid-induced recession struck, public policy in America had been increasingly discouraging work through expanded and more generous disability payments, longer bouts of enhanced, less restrictive unemployment benefits, and more generous social-welfare payments. One consequence: the ranks of the permanently unemployed have grown in America. In the last 20 years alone, the country’s labor-participation rate shrank from nearly 68 percent of adults to just 63 percent right before the Covid lockdowns began. Then in March 2020, the rate slipped below 61 percent—an unprecedented drop. Since then, it’s climbed less than halfway back to pre-Covid level, despite widespread business re-openings and help-wanted signs everywhere. More people are getting used to not working, and the Biden administration’s proposals for expanding federal aid programs will do little to lure them back.

Teachers with benefits earn $56.72/hour

“Private industry employers spent an average of $31.32 per hour worked for total employee compensation in December 2014, the U.S. Bureau of Labor Statistics reported today. Wages and salaries
averaged $21.72 per hour worked and accounted for 69.4 percent of these costs, while benefits averaged $9.60 and accounted for the remaining 30.6 percent.

Total compensation costs for state and local government workers averaged $43.95 per hour worked in December 2014. Total employer compensation costs for civilian workers, which include private industry and state and local government workers, averaged $33.13 per hour worked in December 2014.

Employer Costs for Employee Compensation (ECEC), a product of the National Compensation Survey, measures employer costs for wages, salaries, and employee benefits for nonfarm private and state and local government workers. Private industry employer costs for paid leave benefits averaged $2.16 per hour worked in December 2014. Private industry costs for paid leave include vacation leave which averaged $1.13 per hour worked, holiday leave which averaged 66 cents, sick leave which averaged 26 cents, and personal leave which averaged 12 cents in December 2014. Paid leave benefit costs are often directly linked to wages; therefore, higher paid occupations or industries will typically show higher estimates for this compensation component. Private industry paid leave benefit costs were highest for management, professional, and related occupations at $4.67 per hour worked, or 8.4 percent of total compensation, in December 2014. Costs were lowest among service occupations at 56 cents, or 3.9 percent of total compensation.  Included in this amount were employer costs for vacations, holidays, sick leave, and personal leave.”

http://www.bls.gov/news.release/pdf/ecec.pdf

Obama’s obsession prevents him from doing his job

“Virtually all of the data cited by the left to decry the supposed explosion of income inequality, as Lee Ohanian and Kip Hagopian point out in their seminal paper, "The Mismeasure of Inequality" (Policy Review, 2011), use a Census Bureau definition of "money income" that excludes taxes, transfer payments like Medicaid, Medicare, nutrition assistance, the Earned Income Tax Credit, and even costly employee benefits such as health insurance.

Thus the data that is conventionally used to calculate the so-called Gini coefficient—the most commonly used measure of income inequality—ignore America's highly progressive income tax system and the panoply of benefits and transfer payments.”

http://online.wsj.com/news/articles/SB10001424052702303773704579269990020773098?mod=trending_now_4

Income inequality?  There’s a huge gap between the Obama household and the Bruce household. And Oprah Winfrey and the  Obama household. And George Soros and Oprah Winfrey. And Bill Gates and George Soros. Good luck Mr. President in making us all equal.

Why are Americans working less?

From the Wall Street Journal article, The Wages of Unemployment

1.  Food stamps—even before the down turn in the economy the program was expanding under Bush. There are over 30 million more Americans receiving food stamps today than in 2000.

2.  Social Security disability payments. Supposedly, we’re healthier than ever, but five million receiving disability by 2000, 6.5 million by 2005, and rising to nearly 8.6 million today.

3.  Pell grants. More people in college, fewer in the work force. In 2000, fewer than 3.9 million young men and women received Pell Grant awards to attend college. The number rose one-third, to 5.2 million by 2005, and increased a million more by 2008. In the next three years, however, the number grew over 50%, to an estimated 9.7 million.

For many, it just doesn’t pay to work!  And obviously, this problem did not start with Obama!

Sounds fair to me . . .if

They really need to put out the numbers--what the little guy pays into Social Security, what he gets after 50 years, compared to what the academic and unionized employees get after 30 years.

From an OSU HR memo:

"Last week, Ohio Governor John Kasich presented his proposed biennial budget. In his plan, the Governor is proposing a 2 percent shift between employer and employee pension contributions for all state and local public workers. As proposed, employee contributions would increase by 2 percent, and employer contributions would decrease by 2 percent."

Are they paid for recruiting for the government programs

I noticed this disclaimer on a private, non-governmental website encouraging people to sign up for government benefits. There are two ways (alluded to in the message) to make money doing this: 1) either the government reimburses them for the referrals, or 2) they resell the information collected from those who inquire.

"FamilyFinancialHelpUsa.net is not a government agency and is in no way affiliated with any government agency. This is not an application for Food Stamps, LIHEAP or HUD Public Housing. We are a private organization. We use the information you provide to connect you to the correct site to apply for food stamps, LIHEAP and HUD Public Housing in your state. Additionally we will give you the opportunity to participate in private offers that we believe may benefit you through email. We will also provide you with ways to get other free things that may interest and help your family after entering the site. You are not required to participate in these offers or buy anything to get access to your free financial aid and other free help for the family. Please support our sponsors who keep this site free."

The cost of government workers

It is now known that government workers earn higher wages and have better benefits than private sector workers in the same or similar position. Therefore, I think it's time to start looking at some of the perks the private sector workers don't get, but have to pay for, or else Ohio will end up on the California/Illinois trophy head-on-the-wall award for bad fiscal management. Like this one for Ohio State University faculty and staff employees, for instance.

"If your dependent will be taking classes during summer term and you have an eligible regular appointment of at least 50 percent full-time equivalency, your family members can enjoy the benefits of higher education at a lower cost."

It's been awhile since I looked, but I think "family" has a rather broad definition in this case. Like the foster child of your same sex partner (not sure about opposite sex partner's foster child). And there is a "cap" on the benefits, but it's over $8,000 $6,000 per semester/quarter (in the process of changing from quarter to semester system).

Cadillac insurance? Do you have it?

I used to. I worked for Ohio State University, and you just couldn't beat the benefits (salary wasn't great, though). Some I never was able to use (although they were added into my salary deductions). My husband used to say that the reason he went into business for himself was "the wife got tenure, the children left home and the cat died." My job with health benefits saved us a bundle--not on health care, but on insurance. As a partner in his former firm Feinknopf Macioce and Schappa, he was not eligible for the group plan, so his insurance was bought with before-tax dollars before I got on board at OSU--about $6,000 a year 20 years ago.

President Obama promised in September on numerous talk shows and venues that if you loved your health insurance plan nothing would change. Of course, HE LIED, as he has lied about a lot of things (Obama lied; insurance died). The so called "cadillac" option will penalize people who have them, private or job related, by taxing them out of existence. Here are two examples. First the rich guy who is paying $20,000 a year for his insurance out of his own pocket.

"Mitch Stabbe has one of these plans. He's a lawyer in Washington, D.C. Through his firm, he gets a plan that has an annual premium of more than $20,000, which he pays for himself. Stabbe is a partner, and is considered self-employed, so the firm doesn't contribute to his health coverage.

Stabbe says that when he factors in deductibles and co-payments, the family ends up spending close to $30,000 a year on health care. "That's a nice chunk of change," he says. He believes it's worth it, because otherwise the family would have huge medical costs.

Stabbe's 18-year-old son Bryan has Crohn's disease, a chronic illness that attacks the digestive system. Bryan takes a weekly oral medication, and every five to six weeks, gets an infusion of a drug called Remicade. Without insurance, the infusions alone would cost around $40,000 a year."

So maybe he's rich enough to afford the huge tax increase he'll have to pay, but last year, there were a lot of people who thought they were rich. Then the sub-prime melt down; then Bernie Maddof, etc.

Now here's the not so rich family--a secretary and her disabled husband who doesn't work. They have what I used to have--health care through a college.

"Rusty and Deb Lovell live in Concord, N.H. Rusty had to stop working about a year ago and gets Social Security disability payments. Deb earns a little over $30,000 a year as a secretary at a community college.

But her job also comes with something almost as valuable as her salary — employee health coverage from the state of New Hampshire. Deb's share of the premium cost is $60 a month. Yet when combined with what the state contributes, the total premium for her family coverage ranks in the top 4 percent of premiums in the country.

The plan is negotiated by the state employees union, and Deb says the coverage is "so important to us that we have often negotiated for keeping our insurance and foregone raises year after year."

For the Lovells, the benefit has been priceless. Eight years ago, Rusty was diagnosed with chronic myelogenous leukemia. . . Last year alone, Rusty's care cost more than $1 million. Because of their generous health insurance plan, the total cost for the Lovells came to $500 in co-payments. " Kaiser Health News

Remember, the basis for Obamacare is communal sharing, rationing of services and treatments, weighting care toward the younger members of the community instead of the elderly, with everybody being equal, and only using proven efficacious treatments. Obviously, it wouldn't be equal if the rich guy got to buy more than the state afforded a secretary, and they obviously aren't going to be able to offer Deb's insurance (top 4%) to everyone, so she'll have to be a good sport and not waste so much of health-care resources. The CBO says the government will be collecting $10 billion in "cadillac" revenue in just one year--that's why he can say it won't add to the deficit (HE LIES!). Remember, the taxes start a number of years before the changes take place, too.

I think there's a lot of college and university employees who are going to be surprised to be hit that that great leveling tax surcharge on their health insurance. A little pocket change left over is all they can hope for.

Just one big happy company trading in favors

According to Bloomberg:

"Goldman Sachs Group Inc., which got $10 billion and debt guarantees from the U.S. government in October, expects to pay $14 million in taxes worldwide for 2008 compared with $6 billion in 2007.

The company’s effective income tax rate dropped to 1 percent from 34.1 percent, New York-based Goldman Sachs said today in a statement. The firm reported a $2.3 billion profit for the year after paying $10.9 billion in employee compensation and benefits."

Ho, Ho, Ho. Merry Christmas. So we taxpayers, many of whom are now applying for unemployment checks or standing in a line of 937 for 10 jobs waiting tables, passed the hat for Goldman Sachs Christmas bonuses, which I'm sure were part of "compensation and benefits." Were no guidelines written into this give away package? The $18 billion bonus fund was set aside in 2007. Why didn't they use their own money for the bailout?

Couldn't Congress see this coming? Their own stimulus package so they can pay the mortgage on the multi-million dollar home and the 3rd Mercedes lease. Normally, I don't worry myself about bonuses, perks and salaries--unless I've loaned the company money or own stock in it. And I think I'm now an owner and should have a say in this one. What do you think?

Henry Paulson, the architect of these bailouts, and currently king of the world, is a former employee of Goldman Sachs and a partner with Al Gore in the next great ponzi scheme, cap and trade, a multi-million dollar business called, Generation Investment Management (GIM).

Al Gore might have invented the internet and a new religion, but he's not smart like Hank in money matters. GIM is part of the major carbon-credit trading firms that currently exist: the U.S. Chicago Climate Exchange (CCX) and the Carbon Neutral Company (CNC) in Great Britain. The CCX, is a regulated exchange whose members are committed to cutting their emissions (all the big players are in it--Ted Turner, Kofi Annan, Gore's former chief of staff, Peter Knight, Canadian industrialist Maurice Strong). It is the only cap-and-trade system in North America for six greenhouse gases. Last September, Goldman Sachs bought 10% of CCX shares for $23 million. CCX owns half the ECX (European Climate Exchange), so Goldman Sachs has a stake there as well. See how neatly this works--and it is so bi-partisan, Republicans, Democrats, Americans, Canadians, Brits, Socialists and little 3rd world U.N. tyrants all working together, singing Kum-ba-ya around a non-polluting campfire.

Another former Goldman employee--18 years--is Obama's choice for a "sweeping overhaul" of the Commodity Futures Trading Commission, Gary Gensler. He probably had his cap set (no pun intended) on the SEC but has lost out the Mary Schapiro, head of FINRA, which was asleep at the switch in catching Bernie Madoff.

When Paulson was appointed in 2006 apparently two things on his side (to assure confirmation) was that 1) like most Goldman Sach CEOs he was "insanely wealthy", and 2) a committed environmentalist. Something for everyone.

For information on CCX, ECX, GIM, Hank and Al, see here, and here.

Wellness Programs

This is going to sound petty, but I’ll write it anyway. Do highly educated people with fabulous health benefits need to be enticed into using both their brains and their benefits with “wellness” forums, freebies and football cheerleaders? What ever happened to common sense and self-interest? These people actually do pay for all their benefits--their salaries are reduced to compensate, but I think if they received the money in their paychecks then had to purchase the benefits from a list and see the money decrease, they’d be less likely to have a need to be cajoled and bribed into using them.

“Sponsored by the [Ohio State University] Faculty and Staff Wellness Program, the University Staff Advisory Committee, Your Plan for Health and the Department of Recreation Sports, you can visit more than 100 exhibitors and health care professionionals [sic]; grab a free lunch; obtain various health screenings; and cheer with the Buckeye players, band, cheerleaders and Brutus Buckeye. Be sure to get your free biometric screening to complete your Personal Health Assessment (visit http://yourplanforhealth.com/pha.html to reserve a time). You also can purchase fresh produce from a farmer's market, learn how to "go green," and sample goodies from a healthy cooking demonstration.”

4729

Bad reporting on the uninsured

Jane Zhang reports on the growing number of uninsured government contract workers in today's WSJ. Unfortunately, she hangs the story on the case of a 44 year old, obese woman with MS. The woman, you find out at the end of this sad story, was working for a blind contractor as a food service worker earning $7/hour. She worked approximately 2 years before being diagnosed with MS and had no health insurance.

Under the federal Randolph-Sheppard Act, blind vendors get priority in winning certain federal contracts. In an illustration of the thicket that contract workers face, there is disagreement over what benefits blind vendors who participate in a government program that gives them preferences, are required to offer employees. The Labor Department says blind vendors must comply with the Service Contract Act and provide benefits. But the Education Department, which administers the Randolph-Sheppard program in conjunction with states, says that is decided on a case-by-case basis. The District of Columbia administrator of the program says the blind vendors aren't required to provide benefits.

Zhang builds her story of uninsured contract workers on a case where we find out (at the end) the woman gets full disability from Social Security, Medicare, and $19,000 worth of free drugs a year from the drug company. It's a matter of conjecture (one doctor's) that insurance could have done anything about the MS.

What Zhang points out, but barely, is that contract workers can receive a cash equivalent of $3.16 an hour to buy their benefits according to the McNamara-O'Hara 1965 law which covers private contractors. So what's the gripe? Well, most federal employees have outstanding perks and $5,587 (average) apparently isn't enough to purchase what they would get as full government employees. But the big problem as I see it is the workers, who are often at the low end wage scale, don't use the cash bonus to buy health insurance--they use it for rent, or clothing, or cigarettes and beer. Who knows. But given the choice, they choose not to buy health insurance. There are on-going investigations to catch and punish contractors who don't abide by the law.

There were 650 investigations of contractors by the Labor Dept in 2007, and I assume something triggered the investigation. If there are 5.4 million contract workers, how many are not getting either the insurance or the cash benefit to buy insurance? She uses only anecdotes. There's no information on which is what. This may be a serious problem--but based on the flimsy evidence she has reported, we'll need to look elsewhere for the answers.

When we find out why people who can buy health insurance either privately or through their employer but don't, then maybe we're getting somewhere. It's odd that there isn't a law as there is for car insurance putting the responsibility on the worker.

Are the smartest and best educated becoming more helpless?

or do they just expect more? In a survey of faculty and staff at Ohio State, the staff rated higher on job satisfaction than faculty. 68% of staff said they were satisfied; 65% of faculty were. The faculty (43%) also had more problems finding backup child care or temporary child care than the staff (38%).

When you think benefits, you're probably out of date--vacation, health, holidays. Both the faculty and staff have bunches of benefits--many of which I never used at all when I was faculty (but our net salaries are reduced to pay for all of these):

same sex domestic partner health benefits
sponsored dependent health benefits (I think that means they live in the household)
child care facilities
state of the art recreation facilities
special rooms for nursing parents
paid parental leave
lunch and learn programs
weight and tobacco management programs
elder care resource and referral
tuition assistance
adoption assistance
relocation assistance
and so forth

But they can't find back up child care. Tsk. Tsk.