Please call, write, email, or visit your Senators and Representatives to let them know that we can’t afford to “fix” Social Security again. Private accounts are essential.
Posted on 05/13/2005 8:40:26 PM PDT by Jaysun
I just watched a panel of economist, professors, researchers, and financial experts discuss what should be done to solve the financial woes of Social Security. All of them, to my surprise, agree that private accounts do not correct Social Security’s solvency problem. They’re wrong.
Those arguing either for or against private accounts seemed to be divided in two categories. The advocates were quick to point out the greater potential gains that could be made in the market, the value of ownership, and the overall benefits to the economy. The detractors were quick to point out that the market isn’t a “guaranteed” system, the potential for the market to be down when the person is ready to retire, and the cost associated with moving to private accounts. They both have reasonable arguments, but they’re missing the point.
First, private accounts do in fact correct Social Security’s solvency problem. When you save your own money, even if you bury it in the backyard, you create solvency. That is, your money is going to be there in the future because it isn’t being used to pay current retirees. The problem with Social Security is the system itself. It creates no wealth – it doesn’t even save wealth. All it does is move existing wealth. Every dollar that one person gets in the form of a benefit is a dollar that someone else has to pay in the form of a payroll tax. There is no money in Social Security and there never has been. It was set up in such a way as to make a “trust fund” impossible. They started issuing checks to retirees and funding those checks with taxes on current workers from the very start. Many people point out that such a system is a Ponzi scheme – similar to a chain letter.
The only reason the system hasn’t already collapsed is because they’ve manipulated it to keep it afloat. They raise taxes (some 40 times now), lower benefits, increase the retirement age, tax the benefits themselves, and so on. But just like a chain letter, the SS system is running out of workers to keep the grand scheme going. They can only hike taxes so high. They can only increase the retirement age so high. They can only lower benefits so much. Sooner or later we have to pay the piper. It’s irresponsible to let the piper’s fee grow just because it’s “down the road”. The fact remains that it’s coming.
We can either move to private accounts, or we can let this problem fester until it destroys our position as financial leaders of the world. It’s literally a ticking time bomb. We need to end this madness now.
Private accounts will actually drive the system into crisis faster, since the government depends on today's SS tax receipts to pay the obligations it incurred decades ago and has to shell out dollars for now. If that flow of dollars goes into accounts that can't be raided to pay today's pensioners, the system will go bankrupt in no time.
What's up with the Ryan-Sununu plan? Has King George endorsed it?
We have to face the truth and dump this Ponzi scheme altogether. End all Social Security taxes, let people provide for their own retirements, and let charity take care of the indigent.
Hello Thoughtomater, - I really like some of Your thoughts. Like; 'Just because it is a law doesn't make it a good law'. Now on Social Security. Yes, it does have some Ponzi-ism to the process. But, IF, the anti-Americans in Congress had not have stolen from the Fund then all those receiving SS checks could get big raises today. That money was paid in by working Sovereign Citizens and their employers;- not by all of the people in general. So that money does not belong to the people or the Federal government to use in any way! If the funds from 1970 up until 2000 had been invested at a paltry and immorally low 7-8 percent, plus with compounding, there would be approximately 4.5 Trillion$!! Continuing that Trust management, Social Security and SSDI recipients could today receive 30-40% raises,- and still would continue to have plenty until after the baby-boomer boon. WOW! The Federal government terrorists should be held liable for this theft. Lock the box immediately; raise SS taxable income to $150,000; raise retirement 1 year; invest the Fund wisely. - And imprison and/or fine the thieves. Also, banish the anti-American terrorists in DC whom put us into todays debt. - one more thought: the $200 Billion spent on war-games by W, would have bought and paid for 2,500,000 homes for our poorest families. These homes, plus the billions $ of household goods needed would have boomed our economy and job-base !! Plus allowed much of the low-income workers to have more for medicine, children, education, food, cars, etc.! What a mis-direction of capital, and an immoral terrorist attack upon our Country's Sovereign Citizenry. - God Bless America..
Social Security expenditures for 2004... $318 Billion...
Cost of Iraq War (end of fiscal yr. '05) .... $207.5 Billion..
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