Published: Wednesday, Oct. 23 2013 11:50 a.m. MDT
Some facts:Social Security payments are a TAX, not an investment. The SS
taxes you pay are being given immediately to those who are recipients. Thus SS
is a Ponzi scheme managed by the government and forced on us all. It is all
redistribution of wealth.The first SS recipient, Ida Mae Fuller,
paid $24 and change in SS taxes, then received over $22,800 in payments. So SS
has ALWAYS been a Ponzi scheme and never a retirement account.SS was
originally meant to help those who live beyond the median life expectancy. This
means that as life expectancy increased beyond the age of 65, the burden on the
system has increased.Also, as fertility rates decreased, we have
less workers paying SS taxes relative to those receiving payments. Currently
there are only 1.7 full time workers paying for each recipient receiving
payments. When you add part time workers it climbs to about 3 workers per
recipient. In the 1960's there were about 5 or 6 workers per recipient.
The demographic trend to support the program is unsustainable.
I want to emphasize that to some degree we are all victims of Social Security.
Just as my money is being taken and given to someone else, today's
recipients were once taxed and their money was given to someone else before
them.Sadly, Social Security creates a form of generational warfare.
The interests of grandparents are pitted against the interests of their children
and grandchildren. As a demographic group retirees will, with their votes,
effectively crucify anyone who threatens their SS payments...ensuring that their
own children and grandchildren remain shackled to a grievous tax. In their
defense, these same retirees have been sold on a lie by the government for
pretty much their entire life and now it is generally too late to make different
preparations for retirement.Nobody has "paid into" any
retirement account with Social Security taxes. The "paid into" talk is
part of the government's lie.
The whole idea of social security is embarrassing.Americans
aren't disciplined enough to save their money, so we tell the government to
save it for us. But in the process, enormous expenses are incurred and we
receive only a portion of what we earned.
The failure of elected government to rationally address the demographics of
Social Security is a disgrace. At the time of its inception life expectancy was
about 2 years more than retirement age. Not it is more than 12 years. One need
not be sophisticated in mathematics to see the discrepancy and looming
insolvency. As current politicians do nothing they are only hoping that it
doesn't crash on their watch.
Try this. Take your last paycheck and note the FICA deduction amount that the
government confiscated for your S.S. Now double that for what your employer paid
in matching payments on your behalf. Now multiply that amount by the number of
paychecks you receive in one year. Now multiply that by the number of years you
work or plan to work. Now multiply that amount by 3.5% simple passbook interest
any bank would pay! That's what you could have for your retirement if the
government would have let you keep your own money! Mine is 7 figures and I am
@Shane333You are right, and it's depressing. I have
to admit, it wouldn't bother me if they were up front about it. "We
don't have money for you but you still need to pay." I prefer being
straight forward instead of implying I might get it back one day, which I
Fortunately, some of the younger folks are catching on to the unsustainable
nature of the Ponzi scheme that is "Social Security."The
skeptics should be prudently preparing to support themselves in old age because
they correctly understand that there will not be any money in the SS program by
the time they retire. Or, if there is, the value of the dollar will have so
totally collapsed that any SS payments (and likely their own savings and
investments) will be valueless.The percentage of people who think
there will be SS money coming to them in old age is roughly the same number who
believe in the Easter Bunny, and that Space aliens abducted Elvis. No amount of
data or education will convince them otherwise, so they can continue to live in
a fantasy world. As long as they do not have the power to take the savings from
those who understand SS is bankrupt.
I have heard this same bull since I was a kid. If the government would stop
robbing from it fortheir own needs all would be fine.
1. Shane 333 is right. Social Security meets the definition of a classic Ponzi
Scheme.2. Seniors today are not steeling from the young. The government is
steeling from everyone because congressman can't control themselves.3. In the beginning the seniors were steeling from the young. They took in far
more than they paid.4. The best thing that could happen to SS is for it to
be converted into a 401K plan, out of the reach of anyone in Washington DC.The tone of this article completely masks the truth. Their attempt to
appear balanced masks the fraud that Social Security is.
The promise of social security is, arguably, the biggest lie perpetrated by our
government this century.
Many Americans KNOW Social Security will die when republicans are voted into
power...And the voters who put them there, as a result, will earn
the just rewards of their vote.
younger folks voted en masse for obama and his liberal cronies. guess they get
what they voted for
People were never supposed to get this old, and live so long, in such large
numbers.Many of our hard working grandparents would not have been able to
survive without Social Security.Depression era people were grateful for
anything and everything.
Mr Mac,It is the unfortunate nature of government to be greedy and
inefficient with available money. Consider US socialized welfare programs:
Social Security, Medicare, and Medicaid for example. They're all running
out of money and consuming an ever increasing percent of the Federal budget.
This is a precursor of what we can expect with Obamacare, too.ute
alumni,Young adults hitting the age of 25 will be those who will feel much
of the greatest impact of their votes for Obama. Of all age demographics, young
adults will see some of the greatest relative increases in insurance premiums
under Obamacare. They will face much of the increasing burden for financing
Social Security. They are entering the workforce at a time when it is
increasingly hamstrung by government policies. Sadly, it will be too late for
them when they realize their mistake, and we will all suffer with them.
Count me in that it will be dead in the next decade. We have little chance of
saving it when we now have Obamacare to fund. Good luck to us, we're
headed down a horrible path.
We hear a lot of talk about Social Security running out of money but I never
hear about Welfare running out of money.
We will reach a tipping point soon. Young people will wake up to the fact that
their parents and grandparents have spent trillions on themselves and are
sending the bill to their grandchildren who get get absolutely nothing except
higher taxes. Unfortunately, the U.S. economy will have to be dragged through
the mud (like Greece's is today) before people wake up to the truth.
MountanmanAbsolutely correct. And that is why it would be such a
great thing for the American government to begin a program where individules
could "choose" to ween themselves off of the forced SS train. It would
and should be an easy sell to young people when they see how much more money and
control they could have with their retirement funds. However Democrats
don't trust people to make smart decisions like that. I remember when Bill
Clinton was talking about giving people more money back and he responded that
they probably would not do the right thing with it. Hence, Democrats have taken
it upon themselves to protect us from ourselves. Because a few would not be
smart, we all have to be dumbed down the the lowest common citizen. Nanny
The sad thing about this article is the fact that the same group of young adults
that believe that SS will die before they retire are the same ones who support
Obamacare.What makes them think that Obamacare will do any better
than SS? Both programs are being run by the Federal Government.
Lets see, the government takes your money forcible away form you, makes empty promises, then hopes you die so they do not
have to pay it back.That is social security.I like
individual responsibility better.
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