One Reason Social Security and Medicare/Medicaid's Financial Resources Are Dwindling; Revealed
October 22, 2007 01:08 PM EDT
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In the recent Republican Presidential debate, Congressman Duncan Hunter really put his finger on something.
He mentioned the lost government revenues from the 3 million high tech jobs that reportedly went to overseas markets.
If these lost jobs paid the national average salary of $34k, and the government would have had a 7% Social Security withholding ($2,380 each), the net loss to the government in revenues has been $7,140,000,000 or $7.14 billion per year; for Social Security alone.
This "lost jobs" figure does not specifically touch on the number of low-tech manufacturing jobs that have also been lost to overseas labor markets; and I have not calculated the loss of other federal withholding revenues or state government revenues that evaporated.
One can easily see that the loss of these jobs has likely resulted in the loss of billions, if not trillions, of dollars worth of government revenues that could have been collected if these jobs had stayed within the USA.
Not to mention the stimulation to the economy which all these jobs would have had if they had stayed in our country; and the number of people who could have afforded health care and/or stayed off the welfare/unemployment roles.
Outsourcing overseas is seriously hurting us.
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22 October 2007
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Bill's Spirit is an Artist, Writer, Poet, Philosopher currently wordsmithing from a humble forge in small town Ohio.
The works of the man behind Bill's Spirit have been published in small alternative and amateur presses since 1986. Before that, they just filled notebooks, took up space on walls and gathered dust in piles and boxes.
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Comments: 20
401k's do not benefit ALL Americans. They only benefit those who have the ability to invest in them, and they benefit those companies (or funds) that they are invested in.
Joseph H. - It is not all about a lack of education.
Low-tier manufacturing jobs, such as toy making or plastic bead making, do not require higher education. Those jobs are being sent overseas only to avoid American labor and environmental regulations, for the sake of higher profit margins.
Also, or country has plenty of college educated who are under-employed and under-utilized; primarily because a foreigner will work for far less than an American.
Lots of folks would be able to cover their mortgages (if they're lucky enough to have one...) and their children would attend better funded schools. Waiting for No Child Left Behind to establish educational funding is like waiting for a pipe dream..." And I'm scared, cause I know who's conducting the Pipe Orchestra!
Wilka (may vote twice in 08)
Richard T. - Your idea seems to have a fair number of economic leaks built in to it. These leaks would greatly impair the effectiveness of the program you are pitching. It also seems very similar to the Peace Corps and VISTA programs, what with the indentured service you would want applicants to sign on for.
A program of true altruism would seek only to improve the lot of the individuals, by providing opportunities for furthering education, without proscribing what they must do after the altruistic funds have been received and the education level achieved.
This tit for tat is not altruism, it's bargaining.
Kathy W. - You strike my mark exactly. Thank you for commenting.
Second, the fact many will make claims and if not the dependents will claim.
You figured the lost jobs but not the jobs gained. Random stats can be given many ways and to come out with different figures.
The amount of incometax on these people would most be a negative amount with the earned income credit, along with other tax deductions. Not Social Security but still a revenue drain.
Yes, I like to see the jobs, but the total effect displayed here is not as drastic as estimated.
Kathy- Not all states are tax hungry- Some states have no income, sales taxes, and not everyone owns property. Might want to figure also no drain on the social system, medical system, or unemployment. Should we now make Americans hire Americans? I do not agree with public telling corperations who to hire. It is already a nightmare to hire American workers with all the laws, lawsuits, tax codes, insurances..... American workers are forcing themselves out of jobs.
Kathy-Blame the individual for debt, not the nation. Mortgages are long term investments..so if they over spent..they need to look in mirror at the problem. Schools, are community investments as it should be. People complain about real estate taxes and mil rates then wonder why the schools are under funded. Federal government should not be paying for all the school costs. Sounds like your local school has a budget issue they need to resolve at state and local levels.
After all, people (and their dependents) will file claims regardless of whether these jobs are here or not. Having the jobs here simply means more income flowing into the government's coffers.
The idea that MORE people would make MORE claims IF these jobs were here seems a mighty stretch.
"The amount of incometax on these people would most be a negative amount with the earned income credit, along with other tax deductions."
So, what kind of income tax do you think they are paying without having these jobs here? More? Less? Any?
And, do you really think that people are somehow LESS of a burden on our humanitarian services because these jobs are not here?
If so, I'd like to see your math for that.
"Yes, I like to see the jobs, but the total effect displayed here is not as drastic as estimated."
Really? 3 million jobs is not drastic? $7.14 billion in social security payments alone is not drastic?
We haven't even discussed what other revenues the government can tap into from having some 3 million jobs; or the revenues from the products these jobs would be producing.
Granted, 3 million is only one percent of the overall population, but our government is spending millions of dollars per year trying to get people to quit smoking; and not even 2/10ths of one percent of our population die from smoking in a year.
"It is already a nightmare to hire American workers with all the laws, lawsuits, tax codes, insurances..... American workers are forcing themselves out of jobs."
American Workers simply want jobs that pay a fair wage and/or a fair share of company profits.
The number of greedy "workers" who engage in frivolous law suits against their employers are minuscule (meaning less than 1% of the population) while the number of companies that whine about paying legitimate claims is high (50% or more).
When a worker gets hurt doing the job they've been given, the company has responsibility; just as when a worker spends their whole lives working, they deserve to be taken care of for their whole lives.
Companies deserve to earn profits. It is, however, unconscionable that a company's CEOs can live and retire on multi-million dollar packages while workers who actually make the products, or provide the services that earn the profits are constantly shuttled out into the cold.
You seem to be in favor of, or at least justifying, off-shoring American work and leaving the American working classes to rely on public assistance or to simply struggle, suffer, starve and die.
So, you promote hiring illegals because they will work for less, have no rights and will live in American squalor? You promote the off-shoring of jobs so that the already rich can get richer? To what avail? The dismissal or death of our working classes so that they can be replaced with cheaper foreign labor so company profits can be higher?
The companies that you've worked for all your life could have done better for themselves by hiring someone who would have worked cheaper. But, lucky for you, you lived in a time when corporations and businesses coddled their employees with feelings of loyalty and appreciation. Back in your day, Bosses treated employees as if they were assets. Now days, companies view and treat employees as liabilities.
Bill-Point is you made a simple math play on a complex situation.
Bill-Want to save money, eliminate the EIC. It is sad that a couple can get 25% of the annual pay in a refund. EIC can be over 4,500 dollars. 34k EIC is can be about 1K and we are not even talking about other refunds and tax breaks.
less of a burden, maybe not, but you mentioned Social Security amounts. Burden could be less since more likely a family hard off might not have additional kids verses a family more secure..but then again..welfare generations now..hard to tell.
3 million jobs, is extreme number and many jobs overseas are because its overseas. Oil industry, transportation, financial, many are because the business is international. Do you think a company could operate in the US with American demmanding so damn much for so little work? Companies often would not exist if it were not outsourcing.
Oh-Smoking issue, that money goes directly into the economy also. I think the tax revenue on smoking more then pays for any spent by the government telling people not to smoke.
What is a fair wage? Who decides? Like it or not the EMPLOYER! Sorry but I have been on both sides and have seen good workers over value themselves. Unions, fine, strike and who does it hurt, themselves and business..business needs to survive so they hire people who will work.
1% but when most lawsuits are over a million dollars, boy they add up. Lawsuits cost money and companies never win enough to cover the lawyer fees.
Sorry, worker gets hurt on the job, why blame the employer? What about people who hide health conditions to gain work and insurance. What about workers who do not follow the rules and they cry wolf on the first pain?
I have no problem with a CEO making millions. I have no problem with people making more money then others. No one forces people to work at the place of employment. People know the pay scale, and are told the benefits. People do not like it, its their fault.
Bill- You build a business and it becomes an instant success. Your take in the business is worth millions, so you going to pay the kid washing the floors 250k? Doubt it. You pay according to the value the employee is to your business. Walmart can find anyone to do the job, thus the low pay. I was paid very well for my job, but then again, I brought in the dollars and when I hired, and gave raises or fired, it was based on the value of the worker.
I think Americans need to live within means. Problem is everyone thinks they are owed the American dream without work. I never said hired an illegal, I said hire people willing to work.
I highly doubt American companies would outsource so quick if they availability of skilled workers who would actualy work for the terms were here in the US.
Bill- Hate to tell you something, a business not making money doesnt make more jobs available.
Bill-Americans also have the CHOICE to get better educated, CHOICE to choose the employer, CHOICE to even start a business-get rich- and hire who they want
We are lucky the "American Businesses" are still in the US with current laws and restraints and anti-corperate views. I know if I had a billion dollar business I would move my corperate headquarters out of the US.
Back in my day? Bill to get respect from an employer you must first respect your employer. My company would cut me if they thought someone else could do it cheaper but I proved my value on the balancesheet.
Bill- People make their own destiny and should not base it on government.
Bill-Tell me honestly how much a teenager at McDonalds deserves from company profits? Want a share of company profits, then buy shares of stock.
Great article!
I am, however, quite sure that the number of jobs and the amount of revenue brought in by foreign companies that have established manufacturing plants here in the U.S. could not even be close to equaling the amount of jobs and revenue lost. Especially since our varying levels of government usually offer a series of tax breaks or abatements in order to attract businesses here; which of course result in less taxes being collected than could be.