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ECON In a government shut-down, what happens to Social Security?
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  1. #1
    Join Date
    Mar 2003

    In a government shut-down, what happens to Social Security?

    I just read this article regarding the effects of a FedGov shutdown
    on Social Security payments. Apparently, like "the show must go
    on," the SS checks must go out! It has relieved my mind
    somewhat. What really bothers me, though, is that our
    President doesn't have a clue!

    By Charles Riley, staff reporter
    February 24, 2011: 7:05 AM ET
    (CNNMoney) --
    What happens to Social Security if the government shuts down?

    "People don't get their Social Security checks." That was President
    Obama at a press conference last week.

    And this is Harry Reid, the top Democrat in the Senate, in a
    statement on Tuesday: "A shutdown could ... mean no Social
    Security checks for seniors."

    The Democrats are saber rattling, hoping to portray Republicans
    as irresponsible. And the claim has been repeated by other top

    Here's the rub: It doesn't appear to be true.

    [Read the rest of the article at link]

  2. #2
    What is going to happen at some stage is that when the dollar hyper-inflates the welfare payment will cover little to nothing of daily living costs. This will happen at some stage in the near future meaning in the next 18 months.

  3. #3
    Social Security checks are automated and will go out whether the government shuts down or not. But if your applying for new benefits, then you might have an additional delay.

    Apparentely, the President has the power to make a shutdown easier for the people, by choosing what gets kept open. Or he can make life difficult, but shutting everything down or only leaving open the stuff that people don't need.

    I hope that it shuts down and stay shut for a while.

  4. #4
    Join Date
    May 2001
    Obama will cut off the SS checks to force the Republicans to give him all the money he wants, plus QE3, QE4, QE5, etc. And, of course, this makes the Republicans look like the bad guys and they lose votes come election day.

    Same 'ole games for the easily deceived.

  5. #5
    Your concern should be two parts,

    A) Will the checks keep coming?

    B) How far will my check go if a loaf of bread is $35 and a quart of milk $12?

  6. #6
    Join Date
    May 2001
    Maybe this will help................

    Psst. No shutdown during a 'government shutdown'

    By ANDREW TAYLOR, Associated Press Andrew Taylor, Associated Press Thu Feb 24, 5:26 pm ET

    WASHINGTON Social Security checks would still go out. Troops would remain at their posts. Furloughed federal workers probably would get paid, though not until later. And virtually every essential government agency, like the FBI, the Border Patrol and the Coast Guard, would remain open.

    That's the little-known truth about a government shutdown. The government doesn't shut down.

    And it won't on March 5, even if the combatants on Capitol Hill can't resolve enough differences to pass a stopgap spending bill to fund the government while they hash out legislation to cover the last seven months of the budget year.

    Fewer than half of the 2.1 million federal workers subject to a shutdown would be forced off the job if the Obama administration followed the path taken by presidents Ronald Reagan, George H.W. Bush and Bill Clinton. And that's not counting 600,000 Postal Service employees or 1.6 million uniformed military personnel exempt from a shutdown.

    So we're talking fewer than one in four federal workers staying at home. Many federal workers get paid on March 4, so it would take a two-week shutdown for them to see a delay in their paychecks.

    The rules for who works and who doesn't date back to the early 1980s and haven't been significantly modified since. The Obama administration hasn't issued new guidance.

    The air traffic control system, food inspection, Medicare, veterans' health care and many other essential government programs would run as usual. The Social Security Administration would not only send out benefits but would continue to take applications. The Postal Service, which is self-funded, would keep delivering the mail. Federal courts would remain open.

    The cherry blossoms in Washington would bloom as usual, and visitors to the city would be able to park and see them in all their glory around the Tidal Basin.

    But they wouldn't be able to take the elevator up the Washington Monument, visit museums along the National Mall or take a White House tour. National parks would be closed to visitors, a loss often emphasized in shutdown discussions.

    The Capitol would remain open, however. Congress is deemed essential, despite its abysmal poll ratings.

    The IRS wouldn't answer its taxpayer hotline at the height of tax-filing season. Under IRS precedents, the agency would process tax returns that contain payments. But people getting refunds would have to wait.

    All sides say they don't want a so-called shutdown like the two separate partial government closings in 1995-1996, when President Clinton and a then-new GOP majority in Congress were at loggerheads over the budget. Republicans took most of the political blame, and the episodes gave Clinton critical momentum on his way to re-election.

    There haven't been any shutdowns since then. The politics stink.

    But from a practical perspective, shutdowns usually aren't that big a deal. They happened every year when Jimmy Carter was president, averaging 11 days each. During President Reagan's two terms, there were six shutdowns, typically of just one or two days apiece. Deals got cut. Everybody moved on.

    In 1995-96, however, shutdowns morphed into political warfare, to the dismay of Republicans who thought they could use them to drag Clinton to the negotiating table on a balanced budget plan.

    Republicans took a big political hit, but a compendium of the other hardships experienced reads like a roster of relatively minor inconveniences for most Americans: closed parks, delays in processing passport applications, 2,400 workers cleaning up toxic waste sites being sent home, and a short delay in processing veterans' claims. A new government standard for lights and lamps was delayed.

    To be sure, furloughs can be a major hardship for federal workers. Even those in essential jobs and required to work could see their paychecks delayed if a stalemate dragged on.

    Lawmakers, however, typically provide back pay, even for employees who weren't required to work. A repeat of that could raise hackles with some in the tea party-backed House GOP freshman class. A spokesman for House Speaker John Boehner, R-Ohio, wouldn't address whether furloughed federal workers would receive back pay if there is a shutdown this time.

    Regardless, federal contractors would lose out. Many contract workers could be furloughed without pay and not receive lost wages retroactively, especially in an extended shutdown.

    Under a precedent-setting memorandum by Reagan budget chief David Stockman, federal workers are exempted from furloughs if their jobs are national security-related or if they perform essential activities that "protect life and property."

    In 1995, that meant 571,000 Defense Department civilian employees, some 69 percent, remained at post, while 258,000 other Pentagon workers were furloughed. Eighty-five percent of Veterans Administration employees went to work as did 70 percent of Transportation Department workers.

    But just a handful of Environmental Protection Agency employees and only 7 percent of NASA workers were on the job, according to Clinton administration data.

    This year, NASA would face widespread furloughs that suggest a shutdown could interrupt preparation for space shuttle flights this spring though the "life and property" rules would almost certainly be invoked so that the Space Shuttle Discovery could land as scheduled on March 7. It took off Thursday afternoon.

    Just 4 percent of employees at the Department of Housing and Urban Development went to work in the 1995 shutdown, as did 11 percent of Department of Education employees. The National Archives shut down completely, as did the tiny Selective Service System.

    Then there's Social Security. Current beneficiaries need not worry; their payments wouldn't be affected. And given the most recent precedent from the Clinton administration, those eligible to apply for benefits would be able to do so.

    During the first shutdown in 1995, the Social Security Administration initially furloughed 93 percent of its workers and stopped enrolling new beneficiaries. But it reversed course in the second shutdown and kept 50,000 additional workers on the job.

    If the federal government is shut down for several days, the Census Bureau could miss its April 1 legal deadline to provide 2010 redistricting data to the states. The bureau is currently in the midst of checking its population tallies, which are broken down by race and ethnicity down to the neighborhood level, for many states.

    By the March 4 deadline, the bureau expects it will have distributed the data to about roughly half the states, with big states such as California, New York and Florida potentially left hanging if the government closes down.

  7. #7
    Join Date
    Mar 2007
    West Virginia
    The last time that happened we had people around here that worked for the federal government and many had a hard time getting banks and utility's to back off.

  8. #8


    The "history" of prior shutdowns is one thing.

    THIS president constitutes a GAME CHANGER since he tends to write his OWN RULES whenever he chooses.

  9. #9
    Join Date
    Oct 2002
    Texas, West of Houston
    One hopes anyone working for the government has been scrimping. It's scary, the number of people who can't deal with a single lost paycheck, especially when they ought to have seen it coming.

    It's hypocritical to sympathize, though, when I want at least a third of them laid off permanently.

  10. #10
    Join Date
    Aug 2009
    Lone Star Native
    At TB2K, government shutdown is another term for "practice run".

  11. #11
    Join Date
    Mar 2003
    The globalist have already stolen SSI. They have stolen trillions from the U.S. Treasury and Tax payers, and now they're coming after pensions and 401Ks. So you will get none of your money back from SSI.
    As long as the mighty stag in the forest is erect and strong, its enemies are held at bay. But at the slightest sign of weakness, the wolves move in for the kill.

  12. #12
    Join Date
    Sep 2007
    Quote Originally Posted by Double_A View Post
    Your concern should be two parts,

    A) Will the checks keep coming?

    B) How far will my check go if a loaf of bread is $35 and a quart of milk $12?
    And a 10 pound bag of potatoes is $25.00.

  13. #13
    Join Date
    Mar 2003
    Quote Originally Posted by Stardust View Post
    The "history" of prior shutdowns is one thing.

    THIS president constitutes a GAME CHANGER since he tends to write his OWN RULES whenever he chooses.
    Well, yes, there is that.


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