Debt Ceiling 2023
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Most private retirement accounts have an administrative cost of .30%. SSA is at .60% and at a MUCH higher volume with a much easier mission (2.5% returns). And their administrative overhead outside of payroll is much lower than the private market. I highly doubt Merril Lynch is getting GSA pricing for office furniture, computers, and such…
There was some talk a few decades ago about privatization of SSA, but it was shot down. Fine. Just privatize the administration of the program…
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Most private retirement accounts have an administrative cost of .30%. SSA is at .60% and at a MUCH higher volume with a much easier mission (2.5% returns). And their administrative overhead outside of payroll is much lower than the private market. I highly doubt Merril Lynch is getting GSA pricing for office furniture, computers, and such…
There was some talk a few decades ago about privatization of SSA, but it was shot down. Fine. Just privatize the administration of the program…
@LuFins-Dad said in Debt Ceiling 2023:
Most private retirement accounts have an administrative cost of .30%. SSA is at .60% and at a MUCH higher volume with a much easier mission (2.5% returns).
This CNBC article says .45% "all-in" expense for private 401(k) accounts on average.
As for the SSA, the .60% is the total including the administration of the disability insurance program. Excluding the disability insurance program, the "old age and survivorship insurance" program's administrative cost is only .40%.
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@LuFins-Dad said in Debt Ceiling 2023:
Most private retirement accounts have an administrative cost of .30%. SSA is at .60% and at a MUCH higher volume with a much easier mission (2.5% returns).
This CNBC article says .45% "all-in" expense for private 401(k) accounts on average.
As for the SSA, the .60% is the total including the administration of the disability insurance program. Excluding the disability insurance program, the "old age and survivorship insurance" program's administrative cost is only .40%.
@Axtremus said in Debt Ceiling 2023:
@LuFins-Dad said in Debt Ceiling 2023:
Most private retirement accounts have an administrative cost of .30%. SSA is at .60% and at a MUCH higher volume with a much easier mission (2.5% returns).
This CNBC article says .45% "all-in" expense for private 401(k) accounts on average.
As for the SSA, the .60% is the total including the administration of the disability insurance program. Excluding the disability insurance program, the "old age and survivorship insurance" program's administrative cost is only .40%.
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.45% for a 401K on average AFTER you start adding in ETF fees and such. The basic administrative fees are .37% according to your article. When we shopped retirement plans a few years ago, .30% was the magic number.
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401Ks represent what? 30% of retirement plans? IRA’s run a little lower, I believe…
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Either way, none comes close to the sheer magnitude and volume of the SSA. That volume drives administrating costs down per dollar spent.
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https://www.reuters.com/article/usa-ratings-scope-ratings-idUSKBN2WX00H
Scope Ratings on Friday placed the United States of America’s AA long-term issuer and senior unsecured debt ratings in local and foreign currency under review for a possible downgrade due to longer run risks associated with the misuse of the debt ceiling instrument.
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I don't think that passes constitutional muster. Borrowing money is reserved for congress, and if the executive tries to do that unilaterally that has constitutional problems.
Of course congress has passed all the laws that are requiring the current level of spending, so the executive unilaterally halting spending to prevent breaking the ceiling would have the same constitutional problem.
I suspect the only truly constitutional methods for the executive branch to unilaterally navigate a debt ceiling crisis would be either minting the trillion dollar coins or issue premium bonds (bonds with above-market interest rates that will sell well above face value, since face value is what counts in the debt ceiling limit).
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https://www.politico.com/news/2023/05/14/supreme-court-debt-limit-14th-amendment-00096784
More discussion on the 14th Amendment. Some interesting stuff like whether the Supreme Court would want or touch it at all, whether anyone will buy bonds issued by the Executive Branch (but not authorized by the Legislative Branch), whether anyone will have standing to sue if such bonds are issued, especially if such bonds are sold only to the Federal Reserve.
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https://abcnews.go.com/Politics/biden-give-prime-time-address-debt-ceiling-deal/story?id=99787806
Biden to speak about the debt ceiling deal tonight at prime time (June 2, 2023, 7 PM Eastern).
@Axtremus said in Debt Ceiling 2023:
Biden to speak about the debt ceiling deal tonight at prime time (June 2, 2023, 7 PM Eastern).
One of the provisions in the agreement is the cancellation of student debt forgiveness. Somewhere I read that that's a stand-alone bill.
I wonder if he'll veto that.
"Now look here, you Baltic gas passer... " - Mik, 6/14/08
The saying, "Lite is just one damn thing after another," is a gross understatement. The damn things overlap.
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@Axtremus said in Debt Ceiling 2023:
Biden to speak about the debt ceiling deal tonight at prime time (June 2, 2023, 7 PM Eastern).
One of the provisions in the agreement is the cancellation of student debt forgiveness. Somewhere I read that that's a stand-alone bill.
I wonder if he'll veto that.
@George-K said in Debt Ceiling 2023:
@Axtremus said in Debt Ceiling 2023:
Biden to speak about the debt ceiling deal tonight at prime time (June 2, 2023, 7 PM Eastern).
One of the provisions in the agreement is the cancellation of student debt forgiveness. Somewhere I read that that's a stand-alone bill.
I wonder if he'll veto that.
Nah, he’ll sign as is. He and McCarthy made the deal after all.
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@George-K said in Debt Ceiling 2023:
@Axtremus said in Debt Ceiling 2023:
Biden to speak about the debt ceiling deal tonight at prime time (June 2, 2023, 7 PM Eastern).
One of the provisions in the agreement is the cancellation of student debt forgiveness. Somewhere I read that that's a stand-alone bill.
I wonder if he'll veto that.
Nah, he’ll sign as is. He and McCarthy made the deal after all.
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https://www.cnbc.com/2023/05/26/house-passes-bill-blocking-student-debt-forgiveness.html
The Senate passed a bill on Thursday aimed at blocking President Joe Biden’s student debt forgiveness plan and ending the pause on federal student loan payments and interest.
The Republican-sponsored bill passed by a vote of 52-46 with three Democrats joining Republicans in support of the resolution. The White House vowed to veto the bill before it went before the House.
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Bernie's op-ed:
https://www.theguardian.com/commentisfree/2023/jun/02/bernie-sanders-debt-ceiling-bill
Bernie says he could not vote for the debt ceiling bill because he thinks the bill cut programs for the most vulnerable, and thinks that Biden should have invoked the 14th Amendment to resolve the issue instead.
