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Public Finance -- Social Security and Medicare

       I will support the continuance of the Medicare, Centers for Medicare and Medicaid Services, and Social Security programs and vote to increase the benefits to meet costs of living.  The Federal Insurance Contributions Act ("FICA") is imposed on both employers and employees or equivalent (i.e., contractors.)  The FICA tax is the premium that is paid into the government public finance programs.  Insurance funding, through "tax premiums," guarantees future benefits to recipients.  How are the benefits guaranteed?  The answer is by financial backing by the United States Congress, alone.  New modifications are needed to remove restrictions on who receives the retirement pension from Social Security and medical insurance from Medicare, if he or she paid into the government public finance programs.

     Moreover, with current trends of commercial pension funds being harvested through corporate restructuring and no pension is offered to employees, in more and more professions; the Social Security public finance program is becoming the only retirement program available to us, who choose to work in this country.  In addition, the investment funds that exist do not guarantee a capital gain nor a preservation of the initial capital investment, with a few exceptions in certain bond funds.  With this formula to build a retirement pension plan, the efforts are doomed to fail for the commercial sector to provide guaranteed pensions, when there are no guarantees to initial capital investments.

     When I took the economics course, “Public Finance,” in college, I remember the debate over whether or not Social Security was a “tax” and/or “welfare” to others – where some of us, including me, saw it as a government sponsored retirement savings program.  Therefore, there are others out there in the population, who always will view the Social Security program as a tax.  Nonetheless, I will always vote to preserve this public finance program and provide the retirement benefit to all, who paid into it, period.  Otherwise, it is not fair and dishonorable to the people, who pay into the program and see no benefit.  

     How to keep the Medicare and Social Security public finance retirement programs in the “black?”  The Consumer Price Index is commonly used to gauge what the cost of living looks like at present and in the past. Finding the rate of change could be done through a moving average, along with the change in rate of population growth or decline to consider. Once the variables are plugged into the equation, the estimated cost will be appropriated through Congress.  Article I of the United States Constitution allows for Congress to “coin” currency through appropriations and determine the units of measure of the currency, as well.  What does that mean?  The prosperous countries, from the dawn of the “Iron Age” to present, all had one thing in common, before each respective country could create currency, which is a mountain range with iron deposits.  Iron deposits are the key to how empires take root.  Without the raw resource of iron to mine; independence cannot be achieved.  A direct result of mastering resources and building functional economies is having public finance programs.

 


Paid for by Johnathan Kyle Davidson.
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