Wednesday, February 2, 2011

The Federal Budget and Social Security

UPDATE Feb. 19, 2011
See this article on entitlement programs from Fox News. Social security and medicaid/medicare comprise 57% of the national budget.

Original post a few days ago:

You may be wondering what child welfare has to do with Social Security. I'm glad you asked.

Most people are not aware that the Federal Funding for state-run foster care and child abuse comes from the Social Security fund. This is authorized under 42 U.S.C. sec 670-679.  There are even more appropriations, for various state-administered child welfare services, all coming out of the Social Security fund. Children in foster care get their medical care through medicaid, more social security funding.

All fifty states have signed on to receive this funding. All fifty state legislatures have the option to opt out of this funding and the associated requirements imposed by the Federal Government. But they won't, because they have come to rely on the billions of dollars funneled from this retirement fund to support their state budgets.

The state economies would collapse if they decided to refuse this funding, whole state agencies would lose funding and thousands of state jobs would be eliminated. Thousands of contract service providers whose sole source of income is from child welfare agencies would have compete in the open marketplace to provide their services. Many will fold.

The government is proposing to raise the retirement age to 69 because the Social Security fund will be empty in a matter of years. Yet, present and future retirees aren't protesting this use of Social Security monies, probably because they don't know where all the money is going.

Now you do. Just in case it matters.

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Leave the emotions, propaganda and rhetoric at the door. This blogger is only interested in intelligent, logical, well-thought out, factually based comments which are on-topic, indicating the writer has an open mind and a mature ability to reason.