The Socialist Security Insurance Program by T. Edwin Perry
My wife, who is as apolitical as you can get, made a comment the other night on one of my Facebook posts in regards to the Social Security System: “I say I paid it I can take it with me. The government sees this differently. It was mine give it all back to me.”
Now, I love my wife for many reasons. Her understanding of politics and how our Government works is not one of them, generally, but she makes a very valid point. Think about it: From the day you start working, you are charged Social Security Insurance on your paycheck, which amounts to 6.2% of your Gross Pay. (For the time being, we’ll ignore the difference between employee pay and self employment income. Those of you who have read my previous posts on the topic already know the difference.) And, we were all told the same thing in High School Civics Class when they explained that this was a “Government Retirement Program” that would support you when you reached 65. (It’s really 62.5, if you choose to retire early, but, we’ll go over that one later on. Keep reading.)
And, let’s be frank here (Hi, Frank, I’m Todd. Nice to meet you.): Every year you get a statement from the Social Security Administration, which shows how much you earned, how much you can expect to receive if you retire at 65, or at 62.5. (I dare you to do the math on that thing: It doesn’t add up!) In many ways, it’s just like the statement that you receive on your 401k Savings Program, your IRA Statement, or any other savings statement that you may receive.
But what so many people don’t understand is that Social Security IS NOT a retirement savings account. IN FACT, they don’t even consider it a tax. It’s a fee, or a contribution, but not a tax. That’s why you can’t get it back when you file your annual Tax Return. It isn’t voluntary, but, no, it isn’t a tax! (That was sarcasm, just in case you missed it.)
So, since neither the Government (Have I told you what a fan I am of those guys?) nor your High School Civics Teacher (Would you believe me if I told you that he/she is a Government Employee? I know: I was shocked, too!) have told you the TRUTH about Social Security, let me give you a quick refresher.
The Social Security Insurance program was originally created to SUPPLEMENT the savings of those special few who lived significantly longer than the average anticipated life span of the day. In 1935, when the plan was first enacted, the age of receiving the benefit was 65, and the average life span for both male and female citizens was 61.7. So, if you lived 3 years longer than expected, you qualified for this entitlement. Everyone was required to participate in the plan; however, the number of people who ACTUALLY SURVIVED long enough to reap the benefits of the plan was generally less than 20%, meaning that one out of five people contributing to the plan ever saw a dime for their contributions. As a result, those who received these benefits were able to pay their bills and even travel, health permitting, without having to scrimp or save.
(For the record, in the Private Sector, this is called a “Ponzi Scheme,” and is the reason why Bernie Madoff is in Prison RIGHT NOW! Welcome to the wonderful world of Double Standards, brought to you by the US Government, the SWEETEST smelling Government in the WORLD!)
As I mentioned before, you can now qualify to receive your Social Security Benefits as early as 62.5 years in age, but the anticipated life expectancy in 2005 was 77.8. Do you see a problem here? Based upon the original intention of the Social Security Act, citizens should be at least 81 years old before qualifying for Social Security Benefits today! Retirement was never an ENTITLEMENT when the act was created. If you couldn’t save enough money to retire, you worked until you died, or until you surpassed your life expectancy by more than 3 years!
And, like any Ponzi Scheme, the failure of the program to change the terms with the times results in MORE people receiving benefits than are actually CONTRIBUTING to the program at the time. The benefit? Well, in 2005, the Government estimated that the Social Security Insurance Program would be BANKRUPT by 2017. In April of this year, that estimate was moved up to 2010. Are you seeing a problem here?
So, why am I calling this the SOCIALIST Security System. After all, it was enacted in 1935 IN THE UNITED STATES OF AMERICA. It’s not the Obama Administration’s fault, right? Well, you’re correct, but not all Socialist activities have started under President Obama’s watch. Just as the Economic Recession had begun prior to President Obama taking office, the issues of the Social Security Insurance Program began in the 1970’s, when the system began its slow descent into Bankruptcy by NOT changing the age of qualification. And the very nature of the program is SOCIALIST in that it takes from one group of people BY THE GOVERNMENT and distributes it to ANOTHER group of people BY THE GOVERNMENT. President Obama likes to call this “Spreading the Wealth Around,” and it is, very much, a socialist concept. But, no, this one is definitely not HIS FAULT….directly, anyway.
Trivia Challenge: Who was the President in 1935? That’s right! Progressive Liberal President Franklin D. Roosevelt, favorite of Republican Senator and recent Republican Presidential Candidate John McCain. Oh, yeah, we had some REALLY great choices this last time around.
So, now you know all about the Socialist…I mean, the Social…Security Insurance Program, so don’t be fooled into thinking that you don’t have to take responsibility for YOUR OWN retirement savings.
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