Ric's Responses to Your Queries

Social Security, Taylor Swift, the real estate crisis - and more

Ric Edelman: It's Monday, May 13th. On today's show, your questions and comments. Ron wrote in about my podcast, that the Republican Study Committee has issued recommendations for solving the Social Security crisis. And Ron asked, “How can we find out which Republicans are on that committee? And how can we communicate with them to indicate our support?” It's easy, Ron. Just go to their website. The link is in the show notes for you. Members of Congress, believe it or not, they love to hear from their constituents. Your input really does make a difference. So use the link to find your representatives and send them an email. And encourage your friends and family to do that too. This is how democracy works. Members of the House of Representatives, literally, your representative. If they aren't representing your views, then in November, you can vote to replace them.  

And StephTraveler7378 wrote, that what I said is a flat out lie. She says, “Social Security is not facing a 24% cut, and that there are zero laws on the books to cut Social Security benefits by 24%.” Well, Steph, you're right. And you're wrong. When I did the podcast that explained the current status of the Social Security crisis, the link to that show is in the show notes, by the way. I said that starting in 2033, if nothing is done under current law, Social Security benefits will be cut 24%. Well, since I recorded that podcast a few weeks ago, the Social Security administration has come out with a new set of analysis, their annual report. And they now say that what they said last year is no longer valid. Last year, they said the Social Security Trust Fund would be depleted in 2033. And that at that time, benefits will be cut 24%. The Social Security Administration's annual report now says, Yes, it's 2033 that the trust fund is depleted, just like they said last year, but instead of a 24% cut, it's going to be a 21% cut. The tax revenue is a little bit better now than it was a year ago. Bottom line is this Stephanie, if you believe that what I'm basically saying is a flat out lie, that there is no law on the books to cut Social Security, all I can tell you, Steph, is that you're in total denial. In fact, that's part of the problem. People just don't want to believe the facts. So they reject them. And they criticize anybody who dares to discuss it. No, there's no law that says that in 2033, Social Security benefits are going to get cut by 24%, now 21%. But there is a law that says Social Security may distribute to retirees only the money that it has. 

And right now 21% of the money that it distributes comes from the trust fund. By 2033, that trust fund will be depleted. That's why benefits are going to get cut. The money simply won't be there for the social security administration to pay out. Everybody who studies this stuff knows this. Some want to pretend it isn't the case. Ronald Reagan knew it was going to happen. Bill Clinton knew it. Both Bushes knew it. Obama knew it. Trump knew it. And now Biden knows it. And every one of those presidents has said, I'm not going to be in office in 2033 when this thing blows up. So why should I take the heat from trying to fix it? I've got current problems today that I need to fix. I'm not going to solve tomorrow's problems. Let the next guy do it. And so here we are. The sad part is that fixing it 10 years ago, 20 years ago, would have been a lot easier, a lot cheaper, than fixing it today, or even 10 years from now. But to say that what I said is a flat out lie only means you're in denial. Don't say, I didn't warn you.  

I also got lots of comments from my YouTube channel, especially about Taylor Swift. If you missed my conversation with Mary Dawson about the economic impact Taylor Swift has had on the economy, the link to that podcast is in the show notes. David wrote, “Taylor is boosting her name while generating huge revenue through her concerts, music, and social activities.” She's quote, “investing all of her income into her image. And thus paying no income taxes. She's creating more pollution doing her thing than entire cities are. And she's promoting abortion to females from ages 10 to 40. How exactly is she boosting the economy or even making anything better?” That's David. And wow, David, sure looks like Taylor has hit a few buttons for you, huh? All I can say is that pretty much everything you said is wrong. Look, I'm not a big Taylor Swift fan, but to suggest that she's paying no income taxes is absurd. Her concerts, her movies, her music, they're all incredibly profitable. There's no way she can reinvest all that money back into her business, and even if she could, she'd only be generating that much more profit the next year. She's paying tens of millions of dollars, maybe even hundreds of millions of dollars in taxes. And not just in federal income taxes, but in state and local income taxes, too.  

A lot of people don't know this, but when you earn money, you don't just pay state income taxes based on where you live. You also pay state income taxes based on the state where you earned the money. So if Taylor lives in Tennessee, I really have no idea where she lives, but if she lives in Tennessee and she does a concert in Illinois, then she has to pay Illinois income taxes based on the revenue she earned from her Chicago concert. So she's generating massive tax revenue for every state where she holds a concert. Same thing for the hotels and the restaurants and the local t-shirt sellers. All of them make money from the people who go to her concerts. It's the same thing for athletes. When a player for the Philadelphia Phillies plays a game hosted by the Arizona Cardinals, that Philly player has to pay Arizona income taxes. And yes, the states usually offer deductions, so if you pay taxes on income in one state, you don't also have to pay it in your home state. So David, you're dead wrong on this. Taylor is a money machine for every state she performs in. So is every other recording artist and professional athlete. 

As for her creating pollution? Well, yeah, sure, her private jet does that, and the trucks that deliver her stage and equipment, they create pollution too. Not much we can do to avoid that, but seriously, are you suggesting that she's generating more pollution than entire cities? Here's a tip for you. If you want to score a political point, you'll do a benefit to yourself by not making extreme, absurd claims. Only undermines your own credibility.  

And as for Taylor Swift promoting abortion to females ages 10 to 40, I really don't know how many 10 year olds are getting abortions, David. From what I've seen, Taylor is advocating choice, not abortion, but I get it. You're opposed to abortion, obviously. I'll tell you what I'm opposed to. I'm opposed to high school dropouts who happen to be rich and famous because of their singing voices or their acting talent or their skill with a basketball decide that they ought to be telling me how I ought to feel about abortion. Or the environment, or racism, or whatever else is the social issue they care about. I appreciate Taylor having a viewpoint. We should all have a viewpoint. But I don't know that she has any particular expertise in this particular topic. And just because she has a platform doesn't make her an expert. So, David, I don't agree with what you accused Taylor of saying, but I do agree that she shouldn't really be saying anything that she's not an expert in. 

So my real advice to Taylor Swift is not to shut up, but instead to really become an expert. Give us a legitimate reason to listen to you when you talk about politics or social issues. Otherwise, you're just like that woman in the TV commercial from the 80s when she said, “I'm a tennis pro and a mother, so I know about skin problems.” Really? So, David, that's exactly how Taylor Swift is boosting the economy, and maybe, just maybe, she's even making things better as well.  

On that same podcast with Mary Dawson, we talked about building credit for Millennials that caused one listener ZulkSOD to write that what I said was, “a load of crock, just a wise tale made up by credit unions to make money.” And silveribis55 wrote that, “inquiring about new lines of credit can hurt your credit score as much as having too many credit cards.” And Andrew said in all caps, “DO NOT CARRY A BALANCE ON A CREDIT CARD EVER!” So let me reply to each of these.  

The guy wrote to me, that email was really mad, but Zulk, your anger is really misplaced. Credit unions are the good guys. They are owned by their members, the depositors. Therefore, you'll find the highest rates on savings accounts, the lowest rates on loans compared to banks compared to commercial banks. I'm not sure why you chewed out credit unions. I wonder if maybe you had a bad experience with one once. And silveribis55, you're right, even asking about a loan can have the same impact on your credit score as getting a loan. It's the same thing with insurance companies. If you ask about a claim, that's the same as actually filing a claim. If you ask too often, your rate's gonna rise on your policy, or it might even get canceled. And Andrew said it best, on my podcast with Mary Dawson, I wasn't trying to suggest that you ought to carry a credit card balance. I merely said that if you are carrying a balance, here's the least evil way to handle it. But Andrew is right, the best approach is to pay off that card in full every month on time and never incur any interest expense.  

On my podcast about real estate brokers in crisis, Larry wrote that, “a 6% commission on a $200,000 house is quite a bit different from a $2,000,000 house. Wouldn't the same amount of time and effort a realtor puts into be roughly the same?”, he asks. He says, “I think the commission should be on a sliding scale based on the property's value. As the price of the house goes up, the commission rate should go down.” Larry, you make a valid point, but agents who sell those expensive homes will give you a counter argument. They will say that they spend a lot more money to sell an expensive house than they spend to sell a cheap house. They run ads in glossy magazines. They produce videos. It can take years to sell multi-million dollar houses. They need additional income to cover all of this. But still, Larry, I think you have a point.  

And about my podcast about Roscoe, the police canine robot that was shot, DivingDuck9 wrote, “I wasn't feeling sad for the dog once you said it was a robot, but I can't believe the thing could walk down a flight of stairs.” Yeah, that's the thing isn’t it, DivingDuck? These robot dogs can not only walk up and down stairs, they can right themselves when they get knocked over. And they can take a bullet, too. Pretty cool, huh?  

And larrykruggel5860 was fascinated by my podcast about the new Jean and Ric Edelman Fossil Park that's opening later this summer at Rowan University. He wrote on a visit to Europe, quote, “I remember when I touched the wall of a 1600 year old cathedral. Imagine holding in your hand something that was alive 66 million years ago.” Yes, Larry, that's exactly the experience everyone will have when you come visit the Edelman Fossil Park. And when you find that fossil, you'll not only hold in your hands something that was alive 66 million years ago, you'll be able to take it home with you.  

Got any questions or comments for me? Write to Ask Ric at TheTruthAYF.com, links in the show notes or comment on any of my social media pages – Facebook, LinkedIn, X, YouTube, Instagram – sorry, I'm not on TikTok. 

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On tomorrow's show, the Boomers are peaking. 

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Links from today’s show: 

VISION – Register Now: https://dacfp.com/2024-dacfp-vision/   

Republican Study Committee website: https://rsc-hern.house.gov/  

4/12/24 Episode – Ric’s conversation with Mary Dawson about the economic impact Taylor Swift has had on the economy: https://www.thetayf.com/blogs/this-weeks-stories/bitcoin-halving-hits-next-week-whats-next  

4/17/24 Episode – Ric explained the current status of the Social Security crisis: https://www.thetayf.com/blogs/this-weeks-stories/the-social-security-debate-has-officially-begun  

4/15/24 Episode – Real Estate Brokers in Crisis:  https://www.thetayf.com/blogs/this-weeks-stories/real-estate-brokers-in-crisis  

4/22/24 Episode – Police K9 Roscoe Was Shot: https://www.thetayf.com/blogs/this-weeks-stories/police-k9-roscoe-was-shot  

4/19/24 Episode – Want to Dig Up Your Own Fossils?: https://www.thetayf.com/blogs/this-weeks-stories/want-to-dig-up-your-own-fossils 

Jean and Ric Edelman Fossil Park and Museum: https://www.rowan.edu/fossils/  

Ask Ric: https://www.thetayf.com/pages/ask-ric 

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X: https://twitter.com/ricedelman 

YouTube: https://www.youtube.com/@RicEdelman 

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