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Galveston’s Social Security alternative seen as a model
Yahoo News ^ | 1 4 Sep 2011 | Sandhya Somashekha

Posted on 09/14/2011 6:11:20 PM PDT by mandaladon

In the late 1970s, county employees in Galveston, Tex., made an unusual and risky decision that they thought would help secure their financial future. They took advantage of a federal provision available at the time and opted out of Social Security.

Their decision was born out of a fear that the federal entitlement program, designed to keep elderly and disabled Americans out of poverty, might not be around in the future. After careful study, the county employees chose an alternative that allowed them to open personal savings accounts.

Today, Galveston has become a poster child for critics of the Social Security system who say the decision is proof that there is a better way. Among those critics are at least two Republicans in the 2012 presidential race, which in recent days has centered on whether it is better to fix or to replace Social Security.

Texas Gov. Rick Perry has been the most prominent critic of the current system, calling it a “monstrous lie” and a “Ponzi scheme” and, in doing so, taking on one of the nation’s most sacrosanct programs.

Though polls show that Americans are concerned about Social Security’s long-term viability, they remain largely opposed to any of the changes to it proposed in recent years. The idea of creating private accounts proved unpopular when President George W. Bush suggested it in 2005.

Perry has revived the debate and pointed to Galveston’s program as a better approach. In his 2010 book, “Fed Up! Our Fight to Save America From Washington,” he wrote that “employees in those private plans, having exercised their liberty at Washington’s sufferance, are reaping the benefits.”

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; Constitution/Conservatism; Extended News; Politics/Elections
KEYWORDS: perry; ss; texas
This is worth studying and debating.
1 posted on 09/14/2011 6:11:25 PM PDT by mandaladon
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To: mandaladon
They took advantage of a federal provision available at the time and opted out of Social Security.

I'm sure that has long since been identified as a "loophole" and "fixed".

2 posted on 09/14/2011 6:15:04 PM PDT by grobdriver (Proud Member, Party Of No! No Socialism - No Fascism - Nobama - No Way!)
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To: mandaladon

bump


3 posted on 09/14/2011 6:22:37 PM PDT by GOPJ (126 people were indicted for being terrorists in the last two years. Every one of them was Muslim.)
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To: mandaladon

Mitt Romney wouldn’t approve. Given his remarks, he believes that SS can only be a FEDERAL program.....


4 posted on 09/14/2011 6:23:15 PM PDT by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: grobdriver

You are right, they closed that ‘loophole’ long ago.
On average the plan has done a 6 1/2 percent return which is about 3 times the return from SS.

http://www.usatoday.com/news/opinion/2005-03-15-benefits-reform-galveston_x.htm


5 posted on 09/14/2011 6:30:43 PM PDT by sheana
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To: mandaladon

PS: It thoroughly disgusts me how republicans during a debate will suddenly use liberal democrat rhetoric and talking points to attack one another.

The way Romney and Bachmann went after Perry was sickening. I could easily imagine Bill Clinton spewing such demagogic talking points to attack Perry’s beliefs on Socialist Security and the thing with the drug company and that stupid vaccine. On the other hand, Perry used democrat type talking points when discussing illegal aliens. ALL of it leaves whomever is left as the nominee open to unending criticism from the other side when the general election campaign gets underway.

You NEVER see the dems attack other dems in such ways.


6 posted on 09/14/2011 6:32:19 PM PDT by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: grobdriver

Yes, it has.


7 posted on 09/14/2011 6:50:53 PM PDT by Scotsman will be Free (11C - Indirect fire, infantry - High angle hell - We will bring you, FIRE)
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To: mandaladon

“This is worth studying and debating.”

Why? Neither political party has any intention whatsoever of getting rid of SS or reforming it or anything else. We’re stuck with this albatross for the foreseeable future.


8 posted on 09/14/2011 7:00:40 PM PDT by RKBA Democrat (Lord Jesus Christ, Son of God, have mercy on me, a sinner!)
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To: mandaladon

Maybe we can convince Galveston to hire everyone in the united states in some kind of scheme where all US employers lease workers through Galveston an Galveston gets a fee of 1/2 percent! The employers would for example pay Galveston 100K for a workers services and Galveston would keep $500. Meanwhile the Ponzi Scheme gets squat!


9 posted on 09/14/2011 7:01:04 PM PDT by WMarshal (Where is the next Sam Adams?)
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To: sheana

That was pre crash, how about now?


10 posted on 09/14/2011 7:06:00 PM PDT by Palter (Even liberals need jobs.)
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To: WMarshal

Now that’s a clever idea.


11 posted on 09/14/2011 7:06:02 PM PDT by achilles2000 ("I'll agree to save the whales as long as we can deport the liberals")
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To: mandaladon
This is worth studying and debating.

As Herman Cain has pointed out, the Chilean model is worth studying and debating.

Here is a video of José Piñera, who architected the Chilean pension system based on principles he learned from Milton Friedman.

http://video.google.com/videoplay?docid=-8215036437587175272

12 posted on 09/14/2011 7:20:40 PM PDT by cynwoody
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To: KoRn

Romney is an ass, read his book you will see his core belief about SS is same as Perry. I like Mitt but using this issue to take down fellow Repub on issue that they are in agreement on is pure political bullshit. Mitt loses big points on my decision matrix on who to support. Mitt needs to express his core beliefs not just debate for poll numbers.


13 posted on 09/14/2011 7:46:55 PM PDT by LowNslow (Retired CWO)
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To: Palter

Sometimes it helps if you read the article. ;)

Our plan, put together by financial experts, was a “banking model” rather than an “investment model.” To eliminate the risks of the up-and-down stock market, workers’ contributions were put into conservative fixed-rate guaranteed annuities, rather than fluctuating stocks, bonds or mutual funds. Our results have been impressive: We’ve averaged about 6.5% annual rate of return over 24 years. And we’ve provided substantially better benefits in all three Social Security categories: retirement, survivorship, disability.


14 posted on 09/14/2011 7:52:37 PM PDT by sheana
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To: mandaladon
I retired 2 years ago @62 from the same system as Galveston county and my monthly check is 3 times as much as ss. After I assume room temperature, my wife will get 75% for the rest of her life. It does work and yes ss is a ponzi scheme
15 posted on 09/14/2011 8:03:54 PM PDT by TEXAS1947 ( It sure is getting hot in Texas)
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To: sheana
Thanks, that article is pre-crash, circa 2005. I did lead later in the Yahoo article.

'the accounts are getting their guaranteed minimum of 3.75 or 4 percent interest, he said.'

The plan still requires all persons to contribute into a plan, instead of keeping your own money and investing as how you plan. There should be some opt out for any plan to allow for your own rise or fall.

16 posted on 09/14/2011 8:16:55 PM PDT by Palter (Even liberals need jobs.)
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To: mandaladon

bump


17 posted on 09/14/2011 8:28:26 PM PDT by annieokie
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To: annieokie

On Monday, Republican Presidential candidate, Congressman Thaddeus McCotter, introduced the SAVE SOCIAL SECURITY ACT, which has been described as a cross bewtween the Chilean model and the TSP. The plan would be the largest reduction of government spending in history. It does NOT raise the payroll tax, increase the retirement age, reduce payments or privatize the system. It has been approved by the SSI actuary who said the plan would have 100% participation. THE MEDIA HAS NOT COVERED THIS STORY. Its obvious if you think Herman Cain has a good idea or that the Chilean plan should be looked into. THIS IS A BILL THAT WAS SUBMITTED IN THE HOUSE. ITS REAL! ITS NOT A THOUGHT. ITS NOT AN IDEA. You can find the bill at McCotter2012.com or on his house website.

Can somone PLEASE explain to me how and why this bill has been BLACKED OUT BY THE MEDIA?


18 posted on 09/14/2011 8:41:31 PM PDT by cumbo78
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To: mandaladon

For what it’s worth on this thread:

Romnay has claimed that “Perry is scaring” the elderly now on Medicare.

But it is Romney who is “scaring” the elderly now on Social Security by claiming that people like Perry want to make things worse for those already getting Social Security.

When whether it’s Paul Ryan or Governor Perry, they want to adjust NEW Social Security benefit plans and payroll tax plans, for those not yet retired and offer even something better altogether for those who are not yet working.

All those things are necessary to start making Social Security solvent for those now on it, and this with substantial time already paying into it.

But Romney and others are ignoring that truth because they have no good ideas, only the single idea to somehow keep the existing Social Security plan limping along, from one crisis to another.


19 posted on 09/14/2011 9:53:35 PM PDT by Wuli
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To: TEXAS1947
After I assume room temperature, ............................That's a nice way to put it LOL!!!
20 posted on 09/15/2011 6:45:36 AM PDT by mandaladon (PalinGenesis)
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To: cumbo78
Thanks, I will look into it further later.

As to why the Media is not covering this, nor anyone else. Because they, the Dems, are not through using the TIRED OLD scare the OLD people tactic, they have used every election I can remember.

Well for the last 20 yrs, we have heard it so much that is has become a MOOT issue with us, yet they don't get that we don't care to listen to that lie any longer. I never was afraid of what they said anyway, but more are catching on.

You all know about the results of using the same ole, same ole' and expecting differant results. Well, you just can't fix STUPID.

21 posted on 09/15/2011 3:49:54 PM PDT by annieokie
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To: annieokie

The thing that really bothers me is that its NOT just the democrat liberal media that hasn’t covered this. Its Rush, Hannity, Mark Levin, etc. I listened to Mark Levin and Mark Steyn rant for a half hour about Social Security on the very day Cong. McCotter submitted his bill in the House. It was the day after McCotter had formally introduced it at the Heritage Foundation. NOTHING! FROM ANYONE!


22 posted on 09/15/2011 4:05:45 PM PDT by cumbo78
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To: cumbo78
That is strange that the Conservative Heavy weights, Rush, etc., have not talked about it. I suppose they would know of it, or should by now.

Maybe, just maybe, since this is always such a HOT issue that the Democrats keep trying to use to scare the OLD PEOPLE (I am one of them), they prefer to keep things on the low key.

What I want to hear is Perry speaking of this, after all it is a city in his home State that has been using it for a very long time. He needs to tell us how it works, Explain it to everyone, clearly.

23 posted on 09/15/2011 4:15:04 PM PDT by annieokie
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