Day: May 15, 2025

Has Congress Stolen From Social Security?

For awhile now the common and well used meme about the shortfalls in the social security system is because Congress has taken the money out to fund wars and such…..is this true?

If you were to peruse social media message boards on topics/articles pertaining to Social Security, you’ll commonly find that Congress is the scapegoat. Specifically, some commentors point to the idea of lawmakers stealing or raiding Social Security’s trust funds to fund wars and other line items, and failing to “put the money back, with interest.”

The thing about popular opinions on Social Security is that what’s popular isn’t always what’s right. In this instance, the idea of Congress stealing trillions from Social Security is completely baseless.

In August 1935, the Social Security Act was signed into law by President Franklin D. Roosevelt. Among the laundry list of provisions and rules set forth by the Social Security Act of 1935 is the treatment of any excess income (asset reserves) collected — i.e., income collected above and beyond what’s paid out in benefits and used to cover the SSA’s administrative expenses to operate the program.

By law, any excess income collected by Social Security is to be invested in special-issue, interest-bearing government bonds. U.S. Treasury bonds are exceptionally safe and backed by the full faith of the U.S. government.

What’s most important to note is that every cent of these special-issue government bonds is accounted for. In fact, the SSA publicly updates the combined asset reserve amount for the OASI and Disability Insurance Trust Fund (DI), along with the average interest rate it’s generating on its asset reserves, every month. As of the end of December 2024, the combined OASI and DI held around $2.721 trillion in asset reserves, with an average yield of 2.557%.

https://www.fool.com/retirement/2025/01/20/has-congress-stolen-trillions-from-social-security/

There is a very simple fix for any shortfall…..that would be to make all people pay into the system with no exemptions…that could raise the money to cover the shortfall and possibly work on a excess that could be beneficial to retirees that have work hard for their entire lives.

Like I said simple….but billionaires have the clout and the cash to stop any reform of the SS payment system…..

I Read, I Write, You Know

“lego ergo scribo”

For The Return

This is a companion piece for my previous post….

We have been told what a wonderful world it will be as soon as Donny’s agenda and tariffs have done their thing…..

But is that true and how long must we wait?

President Donald Trump says his tariffs on imported goods are encouraging companies to invest in the U.S., claiming that will lead to “better-paying American jobs making beautiful American-made cars, appliances, and other goods.”

But critics say it could take years for American workers to develop the 21st-century manufacturing skills that overseas workers have already mastered.

“In the U.S. you could have a meeting of tooling engineers, and I’m not sure we could fill a room.” Apple CEO Tim Cook says. “In China, you could fill multiple football fields.”

In the meantime, critics warn, consumer products will continue to be manufactured overseas, and Trump’s tariffs will drive prices of those imports higher.

There’s a reason companies moved production offshore in the first place: It’s cheaper thanks to lower labor costs. As a result, American consumers have long benefited from lower prices.

George Carrillo, CEO of the Hispanic Construction Council, says garments and furniture made overseas are generally 20% to 50% cheaper than U.S.-made goods. But for some products, like consumer technology items, the differential is even bigger.

Apple, which makes 80% of its products in China, is a good example.

https://moneywise.com/news/economy/priced-out-trumps-plan-to-bring-manufacturing-back-to-the-us-could-cost-consumers-more-for-years-to-come

Just a little something to think about (if that is possible) when it comes to the promise of the return of American manufacturing.

I Read, I Write, You KNow

“lego ergo scribo”

When Will Manufacturing Return?

I have written a lot about the tariffs and what it will mean to us mere peasants…..but Donny has said that it will revive the US manufacturing sector….is that really the case?

If this promise is true….how will it revive that sector?

There are some doubting Thomas’…..

The Trump administration’s tariff scheme appears less and less likely to bring manufacturing jobs back to U.S. shores.

Businesses across the country are crunching the numbers and realizing that, despite Donald Trump’s insistence, they can’t balance out his tariff hikes across the supply chain.

“Some manufacturers who had plans to open factories in the country say the new duties are only adding to the significant obstacles they already faced,” Bloomberg reported Friday.

That’s because the supply chain to produce those goods in the United States simply isn’t there, requiring companies to import raw materials and factory equipment—which Trump’s tariffs have made unaffordable—from abroad.

And Trump’s unpredictable approach to announcing and enacting or even retracting his tariffs has added confusion and significant volatility to the market, making businesses less likely to invest in large, long-term projects such as factory development.

Nora Orozco, the owner of footwear company Evolutions Brands, wants to open a Texas factory that would create 200 jobs. But the nitty-gritty of Trump’s so-called “manufacturing renaissance” just doesn’t work, according to the small-business owner.

“I like the idea of onshoring, but this makes it impossible for us,” Orozco told Bloomberg.

Reinvigorating American manufacturing has been a tall order for both political parties since the country offshored and automated the bulk of those jobs decades ago. But 2022 did see a spike in job announcements for reshored manufacturing gigs, according to the Reshoring Initiative, a U.S. manufacturing advocacy nonprofit.

https://newrepublic.com/post/195070/donald-trump-tariffs-manufacturers-opening-factories

We are also told that it may be a long haul to return the manufacturing sector to its once proud glory.

If so then why do we have open manufacturing jobs?

President Trump has been upending the global economy in the name of bringing manufacturing back. President Joe Biden signed into law massive investments aimed at doing something similar. The American manufacturing sector is reviving after decades of decay.

But there’s something a bit weird undercutting this movement to reshore factory jobs: American manufacturers say they are struggling to fill the jobs they already have.

According to data from the Bureau of Labor Statistics, there are nearly half a million open manufacturing jobs right now.

…

One big reason manufacturers can’t fill these jobs overnight is because they require workers to have particular skills. And it’s not just skills needed to work on assembly lines. Only around 2 in 5 manufacturing jobs are directly involved in making stuff. Manufacturers also employ people to do research and development, engineering, design, finance, sales, marketing and so on.

https://www.npr.org/sections/planet-money/2025/05/13/g-s1-66112/why-arent-americans-filling-the-manufacturing-jobs-we-already-have

The late Steve Jobs explained to Obama why he and others have gone overseas….

The famously blunt Apple boss wasn’t shy about shooting down the president’s musings. “Those jobs aren’t coming back,” he replied.

The reason why wasn’t just lower costs in countries like China. “Rather, Apple’s executives believe the vast scale of overseas factories as well as the flexibility, diligence and industrial skills of foreign workers have so outpaced their American counterparts that ‘Made in the U.S.A.’ is no longer a viable option for most Apple products,” wrote the Times, summing up discussions.

To illustrate, the paper offered a story shared by a former Apple executive about a last-minute design change to the iPhone’s screen that forced a change in the manufacturing process at the Chinese factory where the phones were being assembled.

Around midnight, a foreman “roused 8,000 workers inside the company’s dormitories, according to the executive. Each employee was given a biscuit and a cup of tea, guided to a workstation and within half an hour started a 12-hour shift fitting glass screens into beveled frames. Within 96 hours, the plant was producing more than 10,000 iPhones a day,” the article reveals.

“The speed and flexibility is breathtaking,” the executive told the Times. “There’s no American plant that can match that.”

https://www.inc.com/jessica-stillman/steve-jobs-quote-on-american-manufacturing-still-applies-today/91181530

Will those ‘well paying’ jobs ever return….and if they do will Americans rush to snap them up?

But I am sure that there are some out there that feel confident that Donny’s plan will do the thing that he has promised.

Sadly I am not one of them.

But it you feel strongly that this is the proper way to go about this situation then by all means explain why you feel that way.

We await the answers.

I Read, I Write, You Know

“lego ergo scribo”