PENSION PERIL LOOMING: U.S.

New York Post ^ | January 11, 2004 | STEPHEN LYNCH

[Siamese Princess]

Folks like you and I who plan and save for retirement are going to get taxed to subsidize those who didn't. You'll be considered wealthy because of your retirement nest egg and the income it generates. The guy next door, who spent every dime he made living the good life, will then help himself to your money using the ballot box. Remember, since we mostly abandoned the Constitution a while back, the primary activity of government has become transferring money from those who earned it to those who didn't.

Great point. A friend and I were discussing IRAs and the fact that currently you can begin to withdraw at age 59 1/2 tax free. He pointed out, "What's going to happen when 40 million retirees don't have IRAs and 4 million do? Do you think that you will be able to access the money tax free?"

[lewislynn]

You know your earnings aren't yours before the check is written. Why would you think your deferred comp will be any different?

[Siamese Princess]

It's already going on. The mindset of this nation is really sad and now it is filtering into the middle class-the attitude that the government will take care of them and that they don't have to worry about things like retirement or healthcare. These are some scary times we are living in and they are about to get scarier.

That's the welfare state in a nutshell. The more the government does for you that less able, and willing, you are to do for yourself and others. When this whole abomination collapses there is going to be huge trouble -- probably a police state to keep order. The US may even breakup up into two or more nations because what holds a very diverse America together today is prosperity and the welfare state -- if these are gone, we have nothing else in common so there's nothing to keep us together. This, of course, was not true in the far more racially, religiously and culturally homogenous America of the 1930s.

[LoudRepublicangirl]

It really bothers me to admit that this is not the America I grew up in. My parents lived through the depression, WWII, Vietnam war, the cold war, etc. I don't know if my generation is going to be able to deal with what lies ahead. And the generations coming up? Forget about it!

[LoudRepublicangirl]

Do you know more about my account at T Rowe Price than I do?

[Nanodik]

If you dont think social security and pensions will be there, you better be prepared for civil unrest, political upheaval, and much stricter less free Homeland Security laws that WILL affect you and your guns.

If you are under 40 and still believe you'll collect SS, you had better start buying lottery tickets because you have a hell of a lot better chance of collecting on the lottery.

[mabelkitty]

LTV tried desperately to get the U.S. government to apay off their "legacy costs" pensions, benefits, etc. for 100,000 loving retirees. Thankfully, they said no.
They had more folks in retirement than on the payroll.

Looks like this is part of the immigration policy argument - we need more people.

[waterstraat]

If you are under 40 and still believe you'll collect SS,

They will get paid, the gov can print all the money it wants to print, it just wont buy anything.

[Siamese Princess]

It really bothers me to admit that this is not the America I grew up in. My parents lived through the depression, WWII, Vietnam war, the cold war, etc. I don't know if my generation is going to be able to deal with what lies ahead. And the generations coming up? Forget about it!

So did mine. No doubt about it -- Americans born after WWII are, as a group, soft and spoiled rotten.

[Siamese Princess]

If you are under 40 and still believe you'll collect SS, you had better start buying lottery tickets because you have a hell of a lot better chance of collecting on the lottery.

Under 40? I've read that anyone born since 1941 (which would make that person 63-years-old this year) will be hosed.

[Siamese Princess]

They will get paid, the gov can print all the money it wants to print, it just wont buy anything.

That's how the government may pay off its debt -- debase the currency.

[Nanodik]

Under 40? I've read that anyone born since 1941 (which would make that person 63-years-old this year) will be hosed.

That might not be correct. I remember reading an analysis of SS back in '94. At that time, the average retiree entering the SS system would collect everything they paid in with interest (2%pa real) plus $100,000 current dollars. The SS system has been made overly generous to earlier generations by leaving the tab for younger generations to pick up. I have not seen any analysis for which year represents the break-even point, but I suspect it is still maybe 5 - 10 years out, provided no reforms are made. Younger generations will be short-changed most likely by congress raising retirement age, increasing taxation of benefits and eventually means testing. Until this comes about, the ones entering the system will most likely make out pretty well.

[LoudRepublicangirl]

You're right. We can't even get up and change the channel on our televisions let alone be strong enough to brave bad times. I think what will happen is that we are going to go through the worst times this nation has seen since before the depression. Those who are tough will survive. Those who are not tough and wait for the government to save them will not do so well.

[Siamese Princess]

That might not be correct.

You may be right. I've read different statistics, thought, stating that even people retiring right now are not doing nearly as well. There's no doubt that someone who retired 20 years ago profited handsomely from Social Security. That person paid next to nothing into the system but reaped a windfall, at the taxpayers' expense.

Government programs such as Social Security, Medicare, AFDC, etc., began modestly but soon expanded. This is one of the ways the ruling class buys votes and obedience from their subjects, us.

[Siamese Princess]

I think what will happen is that we are going to go through the worst times this nation has seen since before the depression. Those who are tough will survive. Those who are not tough and wait for the government to save them will not do so well.

You are absolutely correct. In some ways, even now, America is far worse off than during the Depression. America was far more virtuous and homogenous. During the Depression, America was still a nation, not just a population. The crime rate was very low. People marched in the streets demanded jobs -- now they want government handouts.