Thursday, March 20, 2025

Social Security

The American program known as Social Security was created in 1935. The full name is “Old-Age, Survivors, and Disability Insurance” and is run by the Social Security Administration (SSA).

Social Security is funded by a separate payroll tax similar to a pension plan. Shortfalls are predicted in the near future because the payments apply only to the first $176,100 of your income so the wealthy aren’t paying their share. It is collected by the IRS, which also collects federal income tax, but is kept in a separate fund. The administration of Social Security is funded by federal taxes so all funds collected go back to the people who paid into it. This is their money that the federal government is holding in trust for them, and is paid back in monthly payments when they retire.

This is a popular program among the working class with 94% of working people enrolled. For millions of elderly and disabled Americans these checks are the largest or sole source of income. Thom Hartmann calls it “the most successful anti-poverty program in the history of America”.

From the beginning right-wing politicians have been trying to get rid of it. They called it socialism, communism, and more recently a Ponzi scheme. Republicans from Reagan on have attempted to do away with it but each time their own base have risen up and got them to back off. Until now.

Yesterday (March 19) the SSA announced changes to identity verification, purportedly to reduce fraud (although Thom Hartmann claims that “Social Security is one of the most secure and fraud-free programs in American history”). Starting March 31, applicants can no longer apply by telephone but must do so online or in person at an SSA regional office. This will apply to new applicants and any existing recipients changing their deposit information.

Earlier this week DOGE announced the firing of 7,000 employees at SSA with another 30,000 to follow soon. At the same time SSA is closing 26 now, and up to 47 total, field offices across the country. Together this means that applicants will have to travel hundreds of miles and wait in line for hours to register.

The reason given for this? Trump-appointed SSA Acting Commissioner Lee Dudek explains: “We are committed to enhancing the service to better serve our stakeholders and combat identity fraud. By reducing costs and improving our [online] processes, we aim to provide a more accessible and efficient tool for financial institutions and other entities.”

Sounds good but not everyone is buying it.

Hartmann explains that the reason for making it more difficult to reach SSA personnel is to get people so frustrated that they will accept privatization of the program. Banks or other financial institutions would of course reduce benefits and skim a cut off the top to enrich the business owners. Hartmann predicted this a year ago in March 2024 and now here we are. This time Hartmann predicts Trump will initiate privatization within a year from now.

The lay-offs are already affecting Americans. One person commented today that her SS check did not come this month and her automatic payments would fail, with the bank charging her a $32 NSF fee for each payment.

Waj Ali predicted in this morning’s Mary Trump Nerd Avengers podcast that people will die because of this. Elderly and disabled people that cannot get to an office will be unable to register and be unable to pay rent or buy food. He also predicted that once again this issue will cause the people to rise up in protest. This time the Republican Party doesn’t seem to care. Is it because they don’t plan on holding any more elections, so no longer need their votes? With 400 million guns in the country it could get ugly.

Sources:

https://www.housingwire.com/articles/social-security-administration-office-closures-in-person-identity-verification/

https://hartmannreport.com/p/how-trump-ends-social-security-4bb

https://hartmannreport.com/p/social-securitys-death-warrant-was-45f

https://www.youtube.com/watch?v=X4Mw97QVZjI

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