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The Biggest Lie
Jul 20th, 2008 by admin
By: Kenneth D. Gartrell
A very unattractive feature of the US Socialist left is its penchant for calling everyone else a liar. But, the biggest lie of all is called Social Security and it is a fiction of the left.
Did you know that there is no such thing as a Social Security Trust Fund? I have many really smart friends. All of them are much better educated than I am. They attended Harvard, Oxford, Cambridge and the Big Ten. But, to a person, all of them are appalled to discover that Social Security is not secure and well, it may not even be social.
When you pay Social Security tax you give your money to the US Government. They straight away put those funds in the general budget and spend it like a drunken sailor. There is no promise to Social Security except that in future years the Government expresses the “intent” to tax working individuals and pay benefits to retirees at that time.
Government intent is hardly a promise to count on!
Where will you be in the future if the Government is beset with political pressure and economic necessity to give relief to the workers who pay these taxes? Well, that is the problem isn’t it? There is no wealth at all set aside to meet the Social Security obligation. It is a simple pay as you go plan that makes the most inefficient possible use of the funds that people think they are saving for retirement.
Obviously, the best cure for this big problem is to privatize social security. But, the gains in wealth that would follow would make everyone of modest means wealthy and capable of retiring much earlier in life at current rates of economic returns. Apparently that does not serve the American Socialist agenda. So, while we keep buying the lie of Social Security we are being limited by a demagogical set of fear-mongering political leaders who rather enjoy spending our money more than watching us save it and spend it for ourselves.
There seems to be no near-term hope that we can overcome the big lie anytime soon. What I propose in the meantime is that the Government at least improves its promise by issuing Treasury Bills and Treasury Notes back to us for our Social Security set aside. They can still spend the money currently, but long term they have to be responsible and address the global capital markets by managing the credit of the United States instead of perpetrating the biggest lie of all time in American Politics.
Sphere It
Something needs to change with Social Security, especially coming from a person in their 20s. What is the government going to do when these 20 year olds are ready to retire and collect the benefits they are paid for the last three decades? The government keeps promising funds to persons, but when the fund drys up, there’s no money. The result will be higher taxes and less benefits to compensate for the lack of action now. And we all know that the Socialist would love to continue taxing all.
James
You do have a real problem. My advice to you has two parts. First, do not count on Social Security. Think of what you pay for as what it is — a TAX.
Create a separate tax deferred savings plan for yourself and privately set aside the same amount as you pay in Social Security each payday. In 40 years you will not care what Social Security benefit are. If we all made this calculation at age 20 something we would quickly see what a poor promise Social Security is and we would insist on its repeal for future generations.
Second, maintain a consistent political position that in return for the payments you are forced to make for Social Security you want US Treasury Obligations that depend on the “full faith and credit” of the United States. The virtue of this position is that the Government will have the money and be able to use it, but you will have a promise no one can renege on — unlike now where a simple majority vote of Congress can cost you a life of intended savings.
As a lifelong working citizen of the United States you are entitled to nothing less than the same financial promise that the United States makes to foreign Governments and other investors in US Government securities.
It is your money and your security. Insist on it.
Ken Gartrell