I love the 4th of July and frequent displays of patriotism that is displayed on America’s unique holiday celebrating freedom. But I am weary at the same time of such festivities because I know what’s coming. Ladies and gentlemen reading these words right now, the perils that faced the founders of America pale in comparison to the challenges of our current time. There is a reason that for the last 10 days or so I have provided many articles showing readers what America looked like before the implementation of The New Deal which was essentially socialism in its design long supported by progressives disguising their love of European communism, and the grand climax of The Great Society which became possible due to the 1964 election of the most liberal congress in American history with the exception of the one in 1938. Those elections were purchased from a gullible American public with deceit, and now the bills for those errors are coming due in our current time. America is about to hit a brick wall, and for anybody to survive, they need to understand that America was a great country before those terrible programs, and they need to understand that for America to survive for future 4th of July holidays the fight of our lives is currently before us. The video below sums up the problem in the simplest way possible.
At the end of May of 2013 the Social Security and Medicare Board of Trustees published a little known report that was generally ignored by the media, because in it was a very kind warning that by 2026, which is in essence only a decade away, those programs run out of money. They cannot be sustained without raising taxes and taxes cannot be raised without crippling the American way of life. We are at an impasse that cannot be avoided and there is no compromise with that fiscal cliff. It is a fact of reality that nobody wants to look at. Politicians are terrified of it, and the public does not wish to face the summary of their years of neglect in American politics where they paid attention to everything but one of the most important parts of their society—their government. So below is a portion of the report along with a link that will take you dear reader to the more specific information. I suggest you read this carefully and pass it along to a friend. It is important to understand the severity of the problem.
A SUMMARY OF THE 2013 ANNUAL REPORTS
Social Security and Medicare Boards of Trustees
A MESSAGE TO THE PUBLIC:
Each year the Trustees of the Social Security and Medicare trust funds report on the current and projected financial status of the two programs. This message summarizes the 2013 Annual Reports.
Neither Medicare nor Social Security can sustain projected long-run programs in full under currently scheduled financing, and legislative changes are necessary to avoid disruptive consequences for beneficiaries and taxpayers. If lawmakers take action sooner rather than later, more options and more time will be available to phase in changes so that the public has adequate time to prepare. Earlier action will also help elected officials minimize adverse impacts on vulnerable populations, including lower-income workers and people already dependent on program benefits.
Social Security and Medicare together accounted for 38 percent of federal expenditures in fiscal year 2012. Both programs will experience cost growth substantially in excess of GDP growth through the mid-2030s due to rapid population aging caused by the large baby-boom generation entering retirement and lower-birth-rate generations entering employment and, in the case of Medicare, to growth in expenditures per beneficiary exceeding growth in per capita GDP. In later years, projected costs expressed as a share of GDP trend up slowly for Medicare and are relatively flat for Social Security, reflecting very gradual population aging caused by increasing longevity and slower growth in per-beneficiary health care costs.
Social Security’s Disability Insurance (DI) program satisfies neither the Trustees’ long-range test of close actuarial balance nor their short-range test of financial adequacy and faces the most immediate financing shortfall of any of the separate trust funds. DI Trust Fund reserves expressed as a percent of annual cost (the trust fund ratio) declined to 85 percent at the beginning of 2013, and the Trustees project trust fund depletion in 2016, the same year projected in the last Trustees Report. DI cost has exceeded non-interest income since 2005, and the trust fund ratio has declined since peaking in 2003. While legislation is needed to address all of Social Security’s financial imbalances, the need has become most urgent with respect to the program’s DI component. Lawmakers need to act soon to avoid reduced payments to DI beneficiaries three years from now.
Social Security’s total expenditures have exceeded non-interest income of its combined trust funds since 2010, and the Trustees estimate that Social Security cost will exceed non-interest income throughout the 75-year projection period. The deficit of non-interest income relative to cost was about $49 billion in 2010, $45 billion in 2011, and $55 billion in 2012. The Trustees project that this cash-flow deficit will average about $75 billion between 2013 and 2018 before rising steeply as income growth slows to the sustainable trend rate after the economic recovery is complete and the number of beneficiaries continues to grow at a substantially faster rate than the number of covered workers. Redemption of trust fund asset reserves by the General Fund of the Treasury will provide the resources needed to offset Social Security’s annual aggregate cash-flow deficits. Since the cash-flow deficit will be less than interest earnings through 2020, reserves of the combined trust funds measured in current dollars will continue to grow, but not by enough to prevent the ratio of reserves to one year’s projected cost (the combined trust fund ratio) from declining. (This ratio peaked in 2008, declined through 2012, and is expected to decline steadily in future years.) After 2020, Treasury will redeem trust fund asset reserves to the extent that program cost exceeds tax revenue and interest earnings until depletion of total trust fund reserves in 2033, the same year projected in last year’s Trustees Report. Thereafter, tax income would be sufficient to pay about three-quarters of scheduled benefits through 2087.
A temporary reduction in the Social Security payroll tax rate in 2011 and 2012 reduced payroll tax revenues by an estimated $222 billion in total. The legislation establishing the payroll tax reduction also provided for transfers from the General Fund to the trust funds in order to “replicate to the extent possible” payments that would have occurred if the payroll tax reduction had not been enacted. Those General Fund reimbursements amounted to about 15 percent of the program’s non-interest income in 2011 and 2012. The temporary payroll tax reduction expired at the end of 2012.
Under current projections, the annual cost of Social Security benefits expressed as a share of workers’ taxable earnings will grow rapidly from 11.3 percent in 2007, the last pre-recession year, to roughly 17.0 percent in 2037, and will then decline slightly before slowly increasing after 2050. Cost displays a slightly different pattern when expressed as a share of GDP. Program cost equaled 4.2 percent of GDP in 2007, the last pre-recession year, and the Trustees project that cost will increase to 6.2 percent of GDP for 2036, then decline to about 6.0 percent of GDP by 2050, and thereafter rise slowly reaching 6.2 percent by 2087.
The projected 75-year actuarial deficit for the combined Old-Age and Survivors Insurance and Disability Insurance (OASDI) Trust Funds is 2.72 percent of taxable payroll, up from 2.67 percent projected in last year’s report. This deficit amounts to 21 percent of program non-interest income or 17 percent of program cost. A 0.06 percentage point increase in the OASDI actuarial deficit would have been expected if nothing had changed other than the one-year extension of the valuation period to 2087. The effects of recently enacted legislation, updated demographic data, updated economic data and assumptions further worsened the actuarial deficit, but these effects were completely offset by the favorable effects of updated programmatic data and improved methodologies.
While the combined OASDI program fails the long-range test of close actuarial balance, it does satisfy the test for short-range (ten-year) financial adequacy. The Trustees project that the combined trust fund asset reserves at the beginning of each year will exceed that year’s projected cost through 2027.
The Trustees project that the Medicare Hospital Insurance (HI) Trust Fund will be the next to face depletion after the DI Trust Fund. The projected date of HI Trust Fund depletion is 2026, two years later than projected in last year’s report, at which time dedicated revenues would be sufficient to pay 87 percent of HI cost. The Trustees project that the share of HI cost that can be financed with HI dedicated revenues will decline slowly to 71 percent in 2047, and then rise slowly until it reaches 73 percent in 2087. As it has since 2008, the HI Trust Fund will pay out more in hospital benefits and other expenditures than it receives in income in all years until reserve depletion.
The projected HI Trust Fund’s long-term actuarial imbalance is smaller than that of the combined Social Security trust funds under the assumptions employed in this report.
The estimated 75-year actuarial deficit in the HI Trust Fund is 1.11 percent of taxable payroll, down from 1.35 percent projected in last year’s report. The HI fund again fails the test of short-range financial adequacy, as its trust fund ratio is already below 100 percent and is expected to decline continuously until reserve depletion in 2026. The fund also continues to fail the long-range test of close actuarial balance. The HI 75-year actuarial imbalance amounts to 29 percent of tax receipts or 23 percent of program cost.
The modest improvement in the outlook for HI long-term finances is principally due to: (i) lower projected spending for most HI service categories especially for skilled nursing facilities to reflect lower-than-expected spending in 2012 and other recent data; (ii) lower projected Medicare Advantage program costs that reflect recent data suggesting that certain provisions of the Affordable Care Act will reduce growth in these costs by more than was previously projected; and (iii) a refinement in projection methods that reduces assumed per beneficiary cost growth during the transition period between the short-range projections and the long-range projections. Partially offsetting these favorable changes to the projections are somewhat lower projected levels of tax income that reflect lower-than-expected tax income in 2012.
The Trustees project that Part B of Supplementary Medical Insurance (SMI), which pays doctors’ bills and other outpatient expenses, and Part D of SMI, which provides access to prescription drug coverage, will remain adequately financed into the indefinite future because current law automatically provides financing each year to meet the next year’s expected costs. However, the aging population and rising health care costs cause SMI projected costs to grow steadily from 2.0 percent of GDP in 2012 to approximately 3.3 percent of GDP in 2035, and then more slowly to 4.0 percent of GDP by 2087. General revenues will finance roughly three-quarters of these costs, and premiums paid by beneficiaries almost all of the remaining quarter. SMI also receives a small amount of financing from special payments by States and from fees on manufacturers and importers of brand-name prescription drugs. Projected costs for Part B assume an almost 25-percent reduction in Medicare payment rates for physician services will be implemented in 2014 as required by current law, which is highly unlikely.
The Trustees project that total Medicare cost (including both HI and SMI expenditures) will grow from approximately 3.6 percent of GDP in 2012 to 5.6 percent of GDP by 2035, and will increase gradually thereafter to about 6.5 percent of GDP by 2087.
The drawdown of Social Security and HI Trust Fund reserves and the general revenue transfers into SMI will result in mounting pressure on the Federal budget. In fact, pressure is already evident. For the seventh consecutive year, the Social Security Act requires that the Trustees issue a “Medicare funding warning” because projected non-dedicated sources of revenues primarily general revenues are expected to continue to account for more than 45 percent of Medicare’s outlays in 2013, a threshold breached for the first time in fiscal year 2010.
Lawmakers should address the financial challenges facing Social Security and Medicare as soon as possible. Taking action sooner rather than later will leave more options and more time available to phase in changes so that the public has adequate time to prepare.
Read the rest complete with charts and diagrams at the following link:
To understand how we got into this mess it is also important to study The Great Society policies which culminated in the 1960s by Lyndon Johnson, and was the work of Democrats from the 1930s as a progressive platform rooted in global communism. Even though it is long, it is important to read. Some reading this have actually supported The Great Society and are currently avoiding dealing with the errors of their past by praying to some finance God that relief will magically appear. It will not. It is important to understand the problem, and then work to remove all these elements from our society so that we may save it. In previous documents I have shown how America used to be, and can be again. Those who support The Great Society look at such times as antiquated and a step backwards. In a way they are right, I do wish to step back in time—to a time before the socialist imposition of The New Deal, and The Great Society. I don’t want to pay for them. I don’t want to deal with people who are addicted to those government services, and I want to steer away from the collapse of those programs in 2026.
The Great Society was a set of domestic programs in the United States announced by President Lyndon B. Johnson at Ohio University and subsequently promoted by him and fellow Democrats in Congress in the 1960s. Two main goals of the Great Society social reforms were the elimination of poverty and racial injustice. New major spending programs that addressed education, medical care, urban problems, and transportation were launched during this period. The Great Society in scope and sweep resembled the New Deal domestic agenda of Franklin D. Roosevelt.
Some Great Society proposals were stalled initiatives from John F. Kennedy‘s New Frontier. Johnson’s success depended on his skills of persuasion, coupled with the Democratic landslide in the 1964 election that brought in many new liberals to Congress, making the House of Representatives in 1965 the most liberal House since 1938.
The Voting Rights Act of 1965 assured minority registration and voting. It suspended use of literacy or other voter-qualification tests that had sometimes served to keep African-Americans off voting lists and provided for federal court lawsuits to stop discriminatory poll taxes. It also reinforced the Civil Rights Act of 1964 by authorizing the appointment of federal voting examiners in areas that did not meet voter-participation requirements. The Immigration and Nationality Services Act of 1965 abolished the national-origin quotas in immigration law. The Civil Rights Act of 1968 banned housing discrimination and extended constitutional protections to Native Americans on reservations.
War on Poverty
Main article: War on Poverty
The most ambitious and controversial part of the Great Society was its initiative to end poverty. The Kennedy Administration had been contemplating a federal effort against poverty. Johnson, who, as a teacher had observed extreme poverty in Texas among Mexican-Americans, launched an “unconditional war on poverty” in the first months of his presidency with the goal of eliminating hunger and deprivation from American life. The centerpiece of the War on Poverty was the Economic Opportunity Act of 1964, which created an Office of Economic Opportunity (OEO) to oversee a variety of community-based antipoverty programs.
Federal funds were provided for special education schemes in slum areas, including help in paying for books and transport, while financial aid was also provided for slum clearances and rebuilding city areas. In addition, the Appalachian Regional Development Act of 1965 created jobs in one of the most impoverished regions of the country. The Economic Opportunity Act of 1964 provided various schemes in which young people from poor homes could receive job training and higher education.
The OEO reflected a fragile consensus among policymakers that the best way to deal with poverty was not simply to raise the incomes of the poor but to help them better themselves through education, job training, and community development. Central to its mission was the idea of “community action“, the participation of the poor in framing and administering the programs designed to help them.
The War on Poverty began with a $1 billion appropriation in 1964 and spent another $2 billion in the following two years. It spawned dozens of programs, among them the Job Corps, whose purpose was to help disadvantaged youth develop marketable skills; the Neighborhood Youth Corps, established to give poor urban youths work experience and to encourage them to stay in school; Volunteers in Service to America (VISTA), a domestic version of the Peace Corps, which placed concerned citizens with community-based agencies to work towards empowerment of the poor; the Model Cities Program for urban redevelopment; Upward Bound, which assisted poor high school students entering college; legal services for the poor; and the Food Stamp Act of 1964 (which expanded the federal food stamp program).
Programs included the Community Action Program, which initiated local Community Action Agencies charged with helping the poor become self-sufficient; and Project Head Start, which offered preschool education for poor children. In addition, funding was provided for the establishment of community health centers to expand access to health care, while major amendments were made to Social Security in 1965 and 1967 which significantly increased benefits, expanded coverage, and established new programs to combat poverty and raise living standards. In addition, average AFDC payments were 35% higher in 1968 than in 1960, but remained insufficient and uneven.
The most important educational component of the Great Society was the Elementary and Secondary Education Act of 1965, designed by Commissioner of Education Francis Keppel. It was signed into law on April 11, 1965, less than three months after it was introduced. It ended a long-standing political taboo by providing significant federal aid to public education, initially allotting more than $1 billion to help schools purchase materials and start special education programs to schools with a high concentration of low-income children. The Act established Head Start, which had originally been started by the Office of Economic Opportunity as an eight-week summer program, as a permanent program.
The Higher Education Facilities Act of 1963, which was signed into law by Johnson a month after becoming president, authorized several times more college aid within a five-year period than had been appropriated under the Land Grant College in a century. It provided better college libraries, ten to twenty new graduate centers, several new technical institutes, classrooms for several hundred thousand students, and twenty-five to thirty new community colleges a year.
This major piece of legislation was followed by the Higher Education Act of 1965, which increased federal money given to universities, created scholarships and low-interest loans for students, and established a national Teacher Corps to provide teachers to poverty-stricken areas of the United States. The Act also began a transition from federally funded institutional assistance to individual student aid.
The Bilingual Education Act of 1968 offered federal aid to local school districts in assisting them to address the needs of children with limited English-speaking ability until it expired in 2002.
The Social Security Act of 1965 authorized Medicare and provided federal funding for many of the medical costs of older Americans. The legislation overcame the bitter resistance, particularly from the American Medical Association, to the idea of publicly funded health care or “socialized medicine” by making its benefits available to everyone over sixty-five, regardless of need, and by linking payments to the existing private insurance system.
In 1966 welfare recipients of all ages received medical care through the Medicaid program. Medicaid was created on July 30, 1965 under Title XIX of the Social Security Act of 1965. Each state administers its own Medicaid program while the federal Centers for Medicare and Medicaid Services (CMS) monitors the state-run programs and establishes requirements for service delivery, quality, funding, and eligibility standards.
Arts and cultural institutions
National endowments for arts and humanities
In September 1965, Johnson signed the National Foundation on the Arts and Humanities Act into law, creating both the National Endowment for the Arts and National Endowment for the Humanities as separate, independent agencies. Lobbying for federally funded arts and humanities support began during the Kennedy Administration. In 1963 three scholarly and educational organizations—the American Council of Learned Societies (ACLS), the Council of Graduate Schools in America, and the United Chapters of Phi Beta Kappa—joined together to establish the National Commission on the Humanities. In June 1964, the commission released a report that suggested that the emphasis placed on science endangered the study of the humanities from elementary schools through postgraduate programs. In order to correct the balance, it recommended “the establishment by the President and the Congress of the United States of a National Humanities Foundation.”
In August 1964, Congressman William S. Moorhead of Pennsylvania proposed legislation to implement the commission’s recommendations. Support from the White House followed in September, when Johnson lent his endorsement during a speech at Brown University. In March 1965, the White House proposed the establishment of a National Foundation on the Arts and Humanities and requested $20 million in start-up funds. The commission’s report had generated other proposals, but the White House’s approach eclipsed them. The administration’s plan, which called for the creation of two separate agencies each advised by a governing body, was the version approved by Congress. Richard Nixon dramatically expanded funding for NEH and NEA.
After the First National Conference on Long-Range Financing of Educational Television Stations in December 1964 called for a study of the role of noncommercial education television in society, the Carnegie Corporation agreed to finance the work of a 15-member national commission. Its landmark report, Public Television: A Program for Action, published on January 26, 1967, popularized the phrase “public television” and assisted the legislative campaign for federal aid. The Public Broadcasting Act of 1967, enacted less than 10 months later, chartered the Corporation for Public Broadcasting as a private, non-profit corporation.
The law initiated federal aid through the CPB for the operation, as opposed to the funding of capital facilities, of public broadcasting. The CPB initially collaborated with the pre-existing National Educational Television system, but in 1969 decided to start the Public Broadcasting Service (PBS). A public radio study commissioned by the CPB and the Ford Foundation and conducted from 1968–1969 led to the establishment of National Public Radio, a public radio system under the terms of the amended Public Broadcasting Act.
Two long-planned national cultural and arts facilities received federal funding that would allow for their completion through Great Society legislation. A National Cultural Center, suggested during the Franklin Roosevelt Administration and created by a bipartisan law signed by Dwight Eisenhower, was transformed into the John F. Kennedy Center for the Performing Arts, a living memorial to the assassinated president. Fundraising for the original cultural center had been poor prior to legislation creating the Kennedy Center, which passed two months after the president’s death and provided $23 million for construction. The Kennedy Center opened in 1971.
In the late 1930s the United States Congress mandated a Smithsonian Institution art museum for the National Mall, and a design by Eliel Saarinen was unveiled in 1939, but plans were shelved during World War II. A 1966 act of Congress established the Hirshhorn Museum and Sculpture Garden as part of the Smithsonian Institution with a focus on modern art, in contrast to the existing National Art Gallery. The museum was primarily federally funded, although New York financier Joseph Hirshhorn later contributed $1 million toward building construction, which began in 1969. The Hirshhorn opened in 1974.
Transportation initiatives started during President Johnson’s term in office included the consolidation of transportation agencies into a cabinet-level position under the Department of Transportation. The department was authorized by Congress on October 15, 1966 and began operations on April 1, 1967. Congress passed a variety of legislation to support improvements in transportation including The Urban Mass Transportation Act of 1964 which provided $375 million for large-scale urban public or private rail projects in the form of matching funds to cities and states and created the Urban Mass Transit Administration (now the Federal Transit Administration), High Speed Ground Transportation Act of 1965 which resulted in the creation of high-speed rail between New York and Washington, and the National Traffic and Motor Vehicle Safety Act of 1966 a bill largely taken credit for by Ralph Nader, whose book Unsafe at Any Speed he claims helped inspire the legislation.
In 1964, Johnson named Assistant Secretary of Labor Esther Peterson to be the first presidential assistant for consumer affairs.
The Cigarette Labeling and Advertising Act of 1965 required packages to carry warning labels. The Motor Vehicle Safety Act of 1966 set standards through creation of the National Highway Traffic Safety Administration. The Fair Packaging and Labeling Act requires products identify manufacturer, address, clearly mark quantity and servings. The statute also authorizes HEW and FTC to establish and define voluntary standard sizes. The original would have mandated uniform standards of size and weight for comparison shopping, but the final law only outlawed exaggerated size claims.
The Child Safety Act of 1966 prohibited any chemical so dangerous that no warning can make it safe. The Flammable Fabrics Act of 1967 set standards for children’s sleepwear, but not baby blankets.
The Wholesome Meat Act of 1967 required inspection of meat which must meet federal standards. The Truth-in-Lending Act of 1968 required lenders and credit providers to disclose the full cost of finance charges in both dollars and annual percentage rates, on installment loan and sales. The Wholesome Poultry Products Act of 1968 required inspection of poultry which must meet federal standards. The Land Sales Disclosure Act of 1968 provided safeguards against fraudulent practices in the sale of land. The Radiation Safety Act of 1968 provided standards and recalls for defective electronic products.
Joseph A. Califano, Jr. has suggested that Great Society’s main contribution to the environment was an extension of protections beyond those aimed at the conservation of untouched resources. In a message he transmitted to Congress, President Johnson said:
The air we breathe, our water, our soil and wildlife, are being blighted by poisons and chemicals which are the by-products of technology and industry. The society that receives the rewards of technology, must, as a cooperating whole, take responsibility for [their] control. To deal with these new problems will require a new conservation. We must not only protect the countryside and save it from destruction, we must restore what has been destroyed and salvage the beauty and charm of our cities. Our conservation must be not just the classic conservation of protection [against] development, but a creative conservation of restoration and innovation.
— Special Message to the Congress on Conservation and Restoration of Natural Beauty; February 8, 1965
At the behest of Secretary of the Interior Stewart Udall, the Great Society included several new environmental laws to protect air and water. Environmental legislation enacted included:
Clear Air, Water Quality and Clean Water Restoration Acts and Amendments
Wilderness Act of 1964
National Trails System Act of 1968
Wild and Scenic Rivers Act of 1968
Land and Water Conservation Act of 1965
Solid Waste Disposal Act of 1965
Aircraft Noise Abatement Act of 1968
Amendments made to the 1931 Davis-Bacon Act in 1964 extended the prevailing wage provisions to cover fringe benefits, while several increases were made to the federal minimum wage. In addition, a comprehensive minimum rate hike was signed into law that extended the coverage of the Fair Labor Standards Act to about 9.1 million additional workers.
For those who wish to save America, the government must be removed from public education, from medicine, from science, from labor relations, from retirement financing, and from environmental preservation. For that last many will say it is because of government that America has National Parks and a conservation movement at all. For them I point toward Disney World who took capitalism and converted an environmental marshland in the hot Central Florida region and made it a haven of environmental awareness producing money that was poured into science that no government on earth could duplicate. The Walt Disney property in Florida is better managed than any National Park, and serves the same purpose of preservation of valuable land. Similar examples could be provided to every topic mentioned above and more. But first Americans must dust off their tendency to self-reliance and embrace the past that built such characters and reject the past that paved the way to dependency, the policies of The Great Society.
It is good to enjoy fireworks on The Fourth of July and celebrate a time when America declared its independence. But America through trickery, deceit, and political barbarism is more dependent on foreign forces than ever and the strings to that dependency are in the programs of The New Deal and The Great Society. The fight before us will be much more vicious than in any other time in American history. It will be far from easy. That is why am turning my focus on a period of American history that had touches of true independence whether it was in the films of Douglas Fairbanks, or the various renditions of the Lone Ranger. For me those times are represented by the bullwhip and speak of an American attitude that is rooted in justice constantly pursuing freedom. CLICK HERE TO READ MORE. But it is time to take off the masks of convention, and politeness, or patient understanding then declare that the hands of time need to be reset in America to a time before the destructive programs that a vast majority of citizens in The United States have become accustom to. A failure to take off those masks of politeness will result in the end of American civilization as a fiscal powerhouse. It may continue on as Russia currently does, as an impoverished former superpower crushed by communist ideology, but it will not be the nation that we all know and love today. So the fight that is the responsibility of our times is before us, and simply igniting fireworks off on the 4th of July is not enough. An American revolution that has not yet been given a name is before us now, and will occur on all our watches who read this now. When history views us, they won’t celebrate our polite masks that are worn in society when oppressors wished to imprison us with more entitlement programs which only serve politicians in Washington and their ability to stay in office by selling votes through tax payer resources. It is time to dust off our American individuality and get mean and nasty to those who wish to put shackles about our necks with financial slavery. A failure to do so will actually bring more harm to others than it ever averts.