how does the ryan plan for medicare and social sercurity work?

[gregory_dittman]

He believes in privatizing them. Although the Democrats may claim that people would be hammered by the stock market, people will be hammered twice by Social Security. First Social Social Security benefits are going to be cut by 25% somewhere around 2024 to 2033 depending on when people retire. Because of the economy, people are retiring earlier that expected and that's one reason why it went from 2033 to 2024. Also not everyone is working. There is serious unemployment with those that are going to live to see that cut. Since money is not flowing into the system it hits the system two ways. The first way, the money that goes into the fund is instantly spent, but because of the economy less money is going, the reserve is being tapped quicker than expected. Also those unemployed people are going to have less benefits just for the simple fact they are not working and pay determines how much one gets back. Also Social Security may face another cut around 2080. If those people Ryan wants to help held TIPS (U.S. government insured bonds indexed to inflation), they would end up with more money.

Medicare will go to private insurance companies. Medicare loses about $80 billion due to fraud each year and is less efficient than private insurance companies no matter what the Democrats say.