Interesting advice about Social Security from Money.com
What You Need to Know About Social Security
Friday, September 18, 2009
Sunday, September 13, 2009
The Census and Federalism
States gear up for the 2010 Census.
Instructions: Read the attached story above. Afterwards post a comment to this post explaining how the elements of federalism apply to the story. Make sure to cite specific passages from the story and your textbook in your comment.
Instructions: Read the attached story above. Afterwards post a comment to this post explaining how the elements of federalism apply to the story. Make sure to cite specific passages from the story and your textbook in your comment.
Saturday, September 12, 2009
4 problems that could sink America
Interesting commentary in light of the current political environment.
We're uninformed:
The health care smackdown -- sorry, "debate" -- is Exhibits A, B and C.
The soaring cost of health care is a problem that affects most Americans. It's shrinking paychecks, squeezing small businesses, bankrupting families and swelling the national debt.
Yet outraged Americans seem most concerned about fictions like death panels and government-enforced euthanasia, while clinging to the myth that our current system of selective availability and perverse incentives somehow represents capitalist ideals.
But let's take a break from that burdensome issue to examine the likelihood that President Obama was born in a foreign country and hoodwinked America into believing he was eligible to run for president.
People who lack the sense to question Big Lies always end up in deep trouble. Being well informed takes work, even with the Internet. In a democracy, that's simply a civic burden. If we're too foolish or lazy to educate ourselves on health care, global warming, financial reform and other complicated issues, then we're signing ourselves over to special interests who see nothing wrong with plundering our national -- and personal -- wealth.
The iCulture:
We may be chastened by the recession, but Americans still believe they deserve the best of everything -- the best job, the best health care, the best education for our kids.
And we want it at a discount -- or better yet, free -- which brings us back to the usual disconnect between what we want and what we're willing to pay for.
Rationing is a dirty word, so we can't have a system that officially rations something as vital as health care or education. Instead, we have unacknowledged, de facto rationing that directs the most resources to those with the best connections, the most money or the savvy to game the system.
What keeps the rest of us content is the illusion that we, too, will eventually be able to game the system -- as long as the government doesn't interfere.
Solutions that serve some public good -- like Social Security and bank deposit insurance in the 1930s and Medicare in the 1960s -- usually require everybody to give something to get something. If it works, the overall benefits outweigh the costs.
Good programs leave individuals the option to pay more if they want more. Bad programs promise more than they can deliver. But often we don't know that until it's too late.
We're uninformed:
The health care smackdown -- sorry, "debate" -- is Exhibits A, B and C.
The soaring cost of health care is a problem that affects most Americans. It's shrinking paychecks, squeezing small businesses, bankrupting families and swelling the national debt.
Yet outraged Americans seem most concerned about fictions like death panels and government-enforced euthanasia, while clinging to the myth that our current system of selective availability and perverse incentives somehow represents capitalist ideals.
But let's take a break from that burdensome issue to examine the likelihood that President Obama was born in a foreign country and hoodwinked America into believing he was eligible to run for president.
People who lack the sense to question Big Lies always end up in deep trouble. Being well informed takes work, even with the Internet. In a democracy, that's simply a civic burden. If we're too foolish or lazy to educate ourselves on health care, global warming, financial reform and other complicated issues, then we're signing ourselves over to special interests who see nothing wrong with plundering our national -- and personal -- wealth.
The iCulture:
We may be chastened by the recession, but Americans still believe they deserve the best of everything -- the best job, the best health care, the best education for our kids.
And we want it at a discount -- or better yet, free -- which brings us back to the usual disconnect between what we want and what we're willing to pay for.
Rationing is a dirty word, so we can't have a system that officially rations something as vital as health care or education. Instead, we have unacknowledged, de facto rationing that directs the most resources to those with the best connections, the most money or the savvy to game the system.
What keeps the rest of us content is the illusion that we, too, will eventually be able to game the system -- as long as the government doesn't interfere.
Solutions that serve some public good -- like Social Security and bank deposit insurance in the 1930s and Medicare in the 1960s -- usually require everybody to give something to get something. If it works, the overall benefits outweigh the costs.
Good programs leave individuals the option to pay more if they want more. Bad programs promise more than they can deliver. But often we don't know that until it's too late.
Deficit Soars Higher into Record Territory
Federal Deficit Hits $1.38T through August; Economists Estimate 2009 will be Record Year
(AP) The federal deficit surged higher into record territory in August, hitting $1.38 trillion with one month left in the budget year.
The Treasury Department said Friday that last month's deficit was $111.4 billion, below the $152 billion that economists expected. Still, the imbalance added to a flood of red ink already accumulated through a severe recession and massive spending needed to stabilize the banking system.
The soaring deficits have raised worries about the willingness of foreigners to keep purchasing Treasury debt. The Chinese, now the largest foreign owners of U.S. Treasury securities, have expressed concerns about runaway deficits.
Treasury Secretary Timothy Geithner and other administration officials have sought to address those concerns by insisting that once the current downturn is over and the financial system is stabilized, the administration will move forcefully to get the deficits under control. However, Republican critics contend the administration does not have a credible plan to address future deficits.
Private economists worry the country could face the grim prospect of seeing interest rates soar in future years and the dollar weaken as foreigners dump their U.S. holdings.
The Obama administration last month trimmed its forecast for this year's deficit to $1.58 trillion, from an earlier $1.84 trillion. The recovery of the banking system led to the reduced estimate as it meant the administration did not need to get an additional $250 billion in bailout support for banks.
The $1.58 trillion estimate for the full budget year signals that that administration expects the imbalance in September to be around $200 billion. That would be a sharp deterioration from September 2008 when the government closed out that budget year with a $45.7 billion surplus.
Many private economists have slightly smaller deficit estimates for the full year but all agree that 2009 will be a record-holder by a large margin. The previous record deficit in dollar terms was $454.8 billion last year.
The administration's revised budget forecasts issued last month also underscored how much the government's fiscal picture has deteriorated. It is now projecting the deficit over the next decade will total $9 trillion, $2 trillion more than its estimates from a few months ago.
The deterioration partly reflects the country's deep recession, the worst since the 1930s. That downturn has cut into government receipts and pushed up spending in such areas as unemployment benefits and food stamps, along with the cost of fighting wars in Iraq and Afghanistan.
In addition, the government is using a $787 billion economic stimulus program passed by Congress last February to jump-start growth and is spending massive amounts from the $700 billion financial bailout package passed in October 2008 to stabilize the financial system.
The Treasury Department budget report for August showed the government collected $145.5 billion in revenues, a drop of 7.3 percent from August 2008. It marked the 16th consecutive month that revenues have been lower than the previous year, a string that reflects how much the recession, which began in December 2007, has cut into personal income and corporate taxes. Spending in August totaled $256.9 billion, down 4.5 percent from the year before.
However, that comparison was misleading because the deficit last month was lowered by timing shifts which saw some payments shifted into July because Aug. 1 fell on a Saturday.
Primarily because of the timing shifts, last month's deficit was 0.5 percent lower than in August 2008.
(AP) The federal deficit surged higher into record territory in August, hitting $1.38 trillion with one month left in the budget year.
The Treasury Department said Friday that last month's deficit was $111.4 billion, below the $152 billion that economists expected. Still, the imbalance added to a flood of red ink already accumulated through a severe recession and massive spending needed to stabilize the banking system.
The soaring deficits have raised worries about the willingness of foreigners to keep purchasing Treasury debt. The Chinese, now the largest foreign owners of U.S. Treasury securities, have expressed concerns about runaway deficits.
Treasury Secretary Timothy Geithner and other administration officials have sought to address those concerns by insisting that once the current downturn is over and the financial system is stabilized, the administration will move forcefully to get the deficits under control. However, Republican critics contend the administration does not have a credible plan to address future deficits.
Private economists worry the country could face the grim prospect of seeing interest rates soar in future years and the dollar weaken as foreigners dump their U.S. holdings.
The Obama administration last month trimmed its forecast for this year's deficit to $1.58 trillion, from an earlier $1.84 trillion. The recovery of the banking system led to the reduced estimate as it meant the administration did not need to get an additional $250 billion in bailout support for banks.
The $1.58 trillion estimate for the full budget year signals that that administration expects the imbalance in September to be around $200 billion. That would be a sharp deterioration from September 2008 when the government closed out that budget year with a $45.7 billion surplus.
Many private economists have slightly smaller deficit estimates for the full year but all agree that 2009 will be a record-holder by a large margin. The previous record deficit in dollar terms was $454.8 billion last year.
The administration's revised budget forecasts issued last month also underscored how much the government's fiscal picture has deteriorated. It is now projecting the deficit over the next decade will total $9 trillion, $2 trillion more than its estimates from a few months ago.
The deterioration partly reflects the country's deep recession, the worst since the 1930s. That downturn has cut into government receipts and pushed up spending in such areas as unemployment benefits and food stamps, along with the cost of fighting wars in Iraq and Afghanistan.
In addition, the government is using a $787 billion economic stimulus program passed by Congress last February to jump-start growth and is spending massive amounts from the $700 billion financial bailout package passed in October 2008 to stabilize the financial system.
The Treasury Department budget report for August showed the government collected $145.5 billion in revenues, a drop of 7.3 percent from August 2008. It marked the 16th consecutive month that revenues have been lower than the previous year, a string that reflects how much the recession, which began in December 2007, has cut into personal income and corporate taxes. Spending in August totaled $256.9 billion, down 4.5 percent from the year before.
However, that comparison was misleading because the deficit last month was lowered by timing shifts which saw some payments shifted into July because Aug. 1 fell on a Saturday.
Primarily because of the timing shifts, last month's deficit was 0.5 percent lower than in August 2008.
Wednesday, September 9, 2009
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