Friday, October 08, 2010

Bomertime - Social Security

In Friday’s paper I found a paid advertisement inside the “Boomertime in Northeast Indiana vol3, issue 2, 2010.” The paid advertisement was titled “Social Security What you need to know today for tomorrow and the future.” It states Social Security the most successful domestic government program in our nation’s history. I am not sure of their definition of successful, but mine is one that works, not one that has unfunded liabilities exceeding $23 Trillion, unable to pay full benefits to those after 2037 and then can pay but 73% of promised benefits under current law (no COLA) and requires changing the “rules” after the fact and more. To put it bluntly the article calls Social Security an “Intergenerational Contract.” I never signed a contract to participate in a ponzi scheme. I certainly have not signed my children up to participate in the Social Security ponzi scheme and I will not. It is not right to ask others to pay for a program that we ourselves were not willing to fund ourselves.

The article presented all the things Social Security does, but nothing about the inability, problems it faces in the future without raising the retirement age, taxes, base or cutting future benefits or how these problem will affect you. The only ones Social Security OASI has benefited are those who have retired. They have benefited at the expense of the American Worker who now suffer higher taxes than required to fund their own retirement, lower take home pay, less disposable income leading to longer term mortgages, lower saving rates and dependence on government.

On November 27, 1944, A. J. Altmeyer, Chairman reported to congress; “There is no question that the benefits promised under the present Federal old-age and survivors insurance system will cost far more than the 2 percent of payrolls now being collected. As I pointed out in my testimony of last year, none of the actuarial estimates which have been made on the basis of present economic conditions and other factors now clearly discernible result in a level annual cost of this insurance system of less than 4 percent of payroll.”…“Indeed, under certain assumptions the level annual cost has been estimated to be as much as 7 percent of payrolls. On the basis of a 4-percent-level annual cost it may be said that the reserve fund of this system already has a deficit of $6,600 million. On the basis of 7-percent-level annual cost it may be said that the reserve fund already has a deficit of about $16,500 million.” The payroll tax did not reach 8% until 1968 and by this time Social Security benefits had been expanded even more.

There has been decades of talk The only action taken is raising the payroll tax, base, retirement age, enrolling non covered workers and taxing benefits. The can has been kicked down the road long enough. When do we wake up and face the fact Social Security is the worse failure in American History?

To make things worse the American worker paid Boomertime of Northeast Indiana to print this garbage.

NBC-33 Debate poll results from 2002