Six Misconceptions About Social Security

Bellevue University's Economic Department ^ | Dr. Judd W. Patton

[AlaskaErik]

Why do we continue to accept this socialist program?

Old people are greedy, don't care about the future, don't care about their children, grandchildren, etc, and they vote in large numbers. Large enough numbers, so that politicians are afraid to do anything.

[Waco]

What will the average SS check be in 2033? Whatever it takes baby, whatever it takes.

[redrock]

"Why do we continue to accept this socialist program?"

Good question.....

...and another good question.

"And why does the Bush Administration want to make it even larger with the new Prescription proposal???"

redrock

"Repeal that [welfare] law, and you will soon see a change in their manners. St. Monday and St. Tuesday, will soon cease to be holidays. Six days shalt thou labor, though one of the old commandments long treated as out of date, will again be looked upon as a respectable precept; industry will increase, and with it plenty among the lower people; their circumstances will mend, and more will be done for their happiness by inuring them to provide for themselves, than could be done by dividing all your estates among them."

Benjamin Franklin, letter to Collinson, 1753

[HighRoadToChina]

Social Security is THE Ponzi Scheme.

[calenel]

If you count the employer contributions, the total return for an average lifespan, average wage worker is only about 85% - in other words, you get back less money than you put in. And that doesn't even consider inflation.

[calenel]

"Well, it is true that workers today pay 6.2% of their earnings (up to an earnings limit of $72,600) and the employer pays the 6.2% as well. Yes, that adds up to 12.4% in payroll taxes."

It isn't a 12.4% tax - it's an 11.67% tax. 12.4 parts of 106.2 parts is 11.67%. But it is still a scam.

[ThinkDifferent]

Stop taking FICA from anyone under 40 years old.In the interim chaos, do means testing for benefits, but for the sake of future generations, stop the insane lie of the Social Security system now!I am fully aware that this "sacrifice" is not "fair" to people my age and older.

Well said. I just wish there were more voters with your understanding and ethics. As a worker under 30, I'd be more than willing to let the government keep the FICA taxes I've already paid with no expectation of any benefits if I could opt out of this Ponzi scheme.

[ThinkDifferent]

We all know that as long as the 65 and older population block votes at a higher rate than the rest of us, no Administration in Government will propose, and no Congress ever elected will pass a repeal of Social Security.

That's the most frustrating part; it's possible to privatize SS without affecting the benefits of current recipients. (I don't really blame them, they were lied to their entire lives about the nature of SS). But that won't stop Democrats from blatantly lying to retired people and telling them that Republicans are out to steal their benefits, and too many of them buy it.

[TheLion]

bump

[MichiganConservative]

Thanks. this is a nice thing I sent to EVERY ONE ON MY EMAIL LIST.

I just want is out of social security!! I want to be able to take care of myself, thank you. You people who are self-employed know how punishing the 15% tax is.

[Mr Rogers]

I suspect a lot of us on Free Republic would like to see it abolished. However, any politician who proposed that would be unemployed or dead, depending on how long it took the AARP to wheelchair in a riot.

Combine greedy old folks with the abyssmal knowledge of economics in our country, and you have the hallowed and revered social security system.

[CWRWinger]

(I don't really blame them, they were lied to their entire lives about the nature of SS).

Many of them who experienced the great depression, IMO, wanted to be fooled and lied to. I don't think a lot of them wanted to face what were the real problems of that day. One of the problems being an out of control government, no longer responding to the Constitution.

[willyone]

Elderly immigrants who have never worked a day in their lives in the US are routinely granted SSI. There are approximately 700,000 of these leeches who draw on average over a thousand a month in benefits. My best buds mother in law is from Iraq and she gets Social Security, discounts on phone and utilities, housing subsidies, Medi Care and the list goes on. Makes me feel good that all these deserving folks get taken care of. They need to start fitting all newborn kids with the yoke that represents the debt they are inheriting. And we have let it happen.

[willyone]

The really sad part is that if govt. had kept its hands off the money and invested it even at a six or seven percent rate of return by now so much income would be generated that no new taxes would be needed. Instead the country faces financial ruin in a few years. It will be interesting to see how the ruling class gets out of this one. I am so glad I am not in this corrupt system.

[willyone]

Don't forget that if you die before drawing anything out of the system all your contributions are gone. You cannot leave them to grown children, grand kids or anyone else. What a deal huh.

[willyone]

Start a Roth IRA. Fund it to the max allowable and do not miss a year. That is about the only option you have. And it is a good one.

[tahiti]

spunkets you state, "It ain't voluntary...."

Listed below is a brief letter I sent to author of the article. You may be interested in the same.

Hello Dr. Judd,

Permit me a brief moment of your time to comment on your article titled, "Six Micsconceptions about Social Security."

1--Social Security participation is "voluntary." See EEOC v. Information Systems Consulting CA3-92-0169-T IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION

2--The Social Security Act is constitutional because it is a law passed by our federal congress in conjunction with a treaty called the International Labor Agreement.

Laws made to implement a treaty are the law of the land. See U.S. Constitution, Article VI, Sec 2, "all treaties made, or which shall be made, under the authority of the United States shall be the supreme law of the land; and the judges in every state shall be bound thereby, any thing in the constitution or laws of any state to the contrary notwithstanding."

But for the most comprehensive compendium on the subject of voluntary participation in the Social Security system, please visit the following website:

http://www.nite.org/articles/social_security.htm

Thank you for your time.

[mamelukesabre]

SS pays more than just retirement benefits. There are lots of people that are way under 60 years of age or have never worked that still collect checks from SS.


If you had some numbers on that portion of the population broken down by race, I'd be curious to see them.

[mamelukesabre]

If you think about the situation in which SS was created, you will realize that they didn't really have a choice. they needed funds RIGHT NOW to start paying benefits RIGHT NOW. THey started paying benefits immediately with the funds that were just collected. There is no way the public would have agreed to start paying into a system with the PROMISE of a program sometime in the future that would pay benefits to a select few.....YEAH RIGHT....who would have gone along with that back then? Banks were defaulting and people were losing everything. I don't think there were any options at that time.

[ExSES]

Start a Roth IRA. Fund it to the max allowable and do not miss a year. That is about the only option you have. And it is a good one.

Until a future congress decides that the "evil rich" received far too great a benefit from the Roth IRA and decide that all Roth proceeds over and above the original contributions must be included as taxable income!

Face facts, Roth IRA's would be much easier (politically) to eliminate than would Social Security!