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Stop the Social Security blather

By Jennie L. Phipps · Bankrate.com
Monday, August 29, 2011
Posted: 4 pm ET

My husband was listening to some presidential campaign rhetoric this weekend and after hearing an especially unsettling speech, said maybe we should put our retirement planning on hold until after the 2012 election. I don't think that's necessary, but I do think that irresponsible political blather doesn't bode well for anybody's retirement.

Texas Gov. Rick Perry, who has emerged as the leading Republican candidate in the 2012 presidential race, said during a campaign stop at a coffee house in Iowa this weekend that Social Security "is a Ponzi scheme for these young people.

"The idea that they're working and paying into Social Security today, that the current program is going to be there for them, is a lie. ... It is a monstrous lie on this generation, and we can't do that to them."

In his recent book, "Fed Up!" Perry says, Social Security is "by far the best example" of a program "violently tossing aside any respect for our founding principles," and as having been put in place "at the expense of respect for the Constitution and limited government."

If it violates the constitution, does he intend to get rid of it? And how does he propose going about it? I don't hear him offering any constructive suggestions for replacing or re-tooling.

This month, magazine publisher and multimillionaire Steve Forbes interviewed Olivia Mitchell, a professor of finance and an insurance and pension expert at The Wharton School at the University of Pennsylvania, about Social Security. Mitchell said she believes in altering the way Social Security's cost of living adjustment is calculated so the payments don't increase as quickly. She thinks that alone is enough to reign in the system enough to get it past the huge baby boomer bubble.

I doubt there are many of us who want to burden our children with a system that will bankrupt them. On the other hand, Social Security has been a godsend for at least the last two generations of retirees, reducing the level of poverty significantly. And there are millions of baby boomers counting on it for their own survival over the next 20 or 30 years. Finding a reasonable solution to this challenge makes perfect sense, but saber-rattling in service of winning votes doesn't.

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20 Comments
ccBay
September 06, 2011 at 8:04 pm

I have read several yahoo news media articles, recently, where 'the baby boomers who are now reaching retirement age are the reason that Social Security is going broke'. Well according to my research:

It aint the baby-boomers fault that Social Security is in trouble. We worked and paid income taxes and into the Social Security Fund for at least 10 years and one day or more of our working life. What you need to ask members of the US House of Delegates, US House of Representatives, as well as the US Congress how can people who have not worked nor paid into Social Security for at least 10 years or never have become elligible?

Where 'NOTE:' is found throughout are my thoughts.

1) Illegal alien migration into the United States costs American taxpayers $346 billion annually reported by the National Research Council.

2) An estimated 100,000 illegal aliens arrive each month without jobs.
Emergency medical treatment-US taxpayer money provides $250 million a year to help hospitals defray costs for illegal aliens.

3) Once those illegal aliens hit this country, half of them work off the books and do not pay $401 billion tax revenue dollars annually. Additionally, they form the second largest underground economy in the world. Both legal and illegal immigrants send $80 billion back to their home countries in cash transfers on untaxed money.

NOTE: If you want to work in the US then legally immigrate to the US and have a job before you get here. The US needs to increase the number of 6 month "green card workers" permits to US by 10s of thousands. By doing this there will be approximately $401,000,000,000.00 (401 billion USD) more tax revenue paid into the US Treasury each year.

4) Office of Foreign Labor Certification-immigrant workers depress wages for US citizens resulting in declines in federal revenues at $100 billion annually.

5) 300,000 pregnant Mexican women cross the border to birth their babies, known as 'anchor babies', in American hospitals at an average cost of $6,000.00 per birth with no complications. If the child suffers heart defects, Downs Syndrome, Autism or any other problems, the costs jump to $500,000.00 with long term care into the millions of dollars. All footed by the America taxpayer!

6) Every illegal immigrant's child enjoys free breakfasts and lunches through 13 years of publicly funded education at an average cost of $7,000.00 per year per child.

7) Immigrants flood into this country while jobs cascade out to China where we owe $1 trillion in T-bills.

Note: Take a walk through any ToysRUS and/or any hardware store such as ACE Hardware or True Value - for that matter any Wal*Mart and/or KMart - and ask or look to see how many (once manufactured in the US) US popular brand items are made here in the United States. Answer: None in any hardware store or ToysRUS!!!

8) When does it end? Not any time soon! Who pays? You do! Like the proverbial golden calf, the United States taxpayer bleeds to death daily.

9) WIC’s 2011 budget is $7 billion, with 9 million on WIC; 45% of American babies are on WIC. WIC is suppose to be for low income families; 60% of WIC are middle income families who can afford to raise their children from their annual income. The WIC program drives up the cost of formula for families not on the program as well, and some portion of the taxpayer subsidies for WIC ends up going to the makers of infant formula. This “leakage” of benefits is a common problem in subsidy programs.

NOTE: Although the WIC Program comes out of the US Department of Agriculture Annual Budget it is funded money borrowed from the US Social Security Administration Fund. This program along with the money used to pay benefits for illegal and legal aliens as well as benefits to the unemployed US workers caused by manufacturing jobs sourced out to foreign manufacturers on foreign soul are the reason(s) why the US Congress/US Treasury has to pay $.34cents of every tax revenue dollar to repay the loan from Social Security. Any way you look at it - WIC and the program to pay benefits to legal and illegal aliens and/or those who have not paid a dime or 10 years into Social Security as well as the displaced American workers - US taxpayers are paying that $.34 cents out of every tax revenue dollar for these programs and other debt (because of money borrowed for these programs) before any tax revenue can be spent on US taxpayers' services. This program, probably, needs to continue but it needs to be overhauled and used for what it was originally designed for and that is to help the low to no income families and not used as a tool to plan pregnancy in 100s of thousands of families like it is now being used.

NOTE: (A little parody) It is common knowledge that if the US House and US Congress figure out a way to get tax revenue and Social Security from the 100,000,000 Chinese workers - who work in manufacturing in China - who are producing US popular brand name items that were once produced in the United States by American workers and stop borrowing and/ or to stop payment of the problems outlined in 1 - 9 above the US Federal Budget and US Social Security problems would be fixed.

NOTE: There are other problems with waste and abuse of Federal Tax dollar spending, but I know I have addressed that $.34cents of every tax revenue dollar expenditure.

CN
August 31, 2011 at 1:49 pm

janet--thank you for vomiting up the right wing talking points. you are aware that many illegal immigrants pay social security taxes, but aren't entitled to get any? you are aware social security is for the elderly, and is technically THEIR money (overspent as it was), not just a bunch of people who don't want to work?

saeler
August 31, 2011 at 12:31 pm

Here is a few little questions that no one trolling on here can answer, (with any degree of knowledge), nor will they be able to get a reasonable answer from any elected representatives and SSA.
Why is the S.S. tax capped? And why is it capped where its capped?
Why isn't there any dialogue ensuing to adjust the cap, or perhaps even eliminate it, commensurate to peoples wages?

MoJo Man
August 31, 2011 at 10:42 am

SS may be a Ponzi Scheme, but its our Ponzi Scheme. If you think you will get a better retirement from private industry, good luck. Why do you think they created SS? Because private industry did not do the job. Besides, the whole idea that private industry does it best is just wrong. All businesses want to do is make big profits. Forget about the worker, eh!

End the Ponzi Scheme
August 30, 2011 at 5:01 pm

Boomers don't care about future generations, they raided the "trust fund" to buy votes with countless entitlement programs. They whine when the cost of living adjustment isn't big enough for them, yet wouldn't even consider giving back a COL increase that turned out to be skewed too big during the month of calculation.

They weren't the greatest generation, that would have been their parents. They survived the depression, and fought the world wars. Their kids turned out to be spoiled brats. Gen X and Y at least are wising up to the problems their parents caused, and will take the brunt of what the boomers squandered away.

It's only blather if you don't want to hear the truth. It is a Ponzi scheme, and you would be in jail if you ran an investment program with exactly the same operation.

janet
August 30, 2011 at 2:16 pm

Sometimes the truth hurts. . .social security has become a crutch to too many people at the expense of the middle class taxpayer. I can no longer support politicians, illegal immigrants and people who just plain don't want to work. With fewer people paying in to the system, Perry is right. The house of cards will some day fall down.

Deadpool
August 30, 2011 at 2:02 pm

Dinah Friday, imagine, for just a minute, that you paid in at least 15 years of your life... AT LEAST FIFTEEN to the scam that is Social Security, only to find out that you might never see that money.

Please, don't give me that "Baby Boomer" dollar nonsense. You will reap what you are sowing but some of those Gen X, Y, Millenials are more than likely NOT going to see a SINGLE dollar from that Social Security.

Pension?

What's that?

Oh, you mean 401K? Yeah, what a joke.
The years of 30 and pension, followed by Social Security... those have been done with for a while now.

Now, we look forward to working til we are 65-70 and MAYBE, just MAYBE we'll get some money from the government.

The whole US economy is a Ponzi scheme, the problem is that anyone who was supposed to benefit from it... already did.

John
August 30, 2011 at 1:53 pm

Social Security would be fine if it was taken out of the General Fund and kept in it's own account as it was originally intended.

Mike Hinds
August 30, 2011 at 12:07 pm

So, it's "blather" if it agrees with fiscal conservatives, and reasonable if it agrees with the author?

TGM
August 30, 2011 at 11:17 am

Many politicians come & go & all of them have voted higher pay, better health benefits & banking system, free to themselves. Plus they get millions from lobbyist. We the people pay for all of them. And after they leave office they continue to receive checks for the rest of their lives. One of our greatest problems is the staggering cost of paying for our county,city,state, & federal politicians while they are in office & years after they leave office. We pay for every employee & their benefits & retirements for all four levels of government. And let's not forget the IRS personnel. Anyone have an idea how many people that is & the price tag for that alone? Our income is taxed, our property, & our rights, A four yr. old child will pay taxes when he buys a candy bar.
The government spends unlimited $$ trying to control the US population & what we spend our $$ on. Such as what we produce in cars, the food we consume, homes, etc.... you think of some.
The politicians say," you don't need God you have Dem.s" and " you don't need money we will spend it for you." The president(pick one) takes trillions of our $$ and gives it away! He is making Billionaires! And with our $$.
There are only the "Have's " and the "Have not's". Those who have Power!
Be very careful how you vote.It decides what happens to your money. After all isn't Uncle Sam doing this for your own good?