Diatribe against Social Security
Posted by LionelHutz 11 years, 9 months ago to Government
What is galling about Social Security? Oh, where to begin?
I limit myself to four points and already fear I may exceed the character limit for a post.
1. I have been forced into it, and there is no way to get out of it. That describes a jail, not a retirement program.
These words are found on my social security statement:
Social Security is a compact between generations. Since 1935, America has kept the promise of security for its workers and their families. Now, however, the Social Security system is facing serious financial problems...
I can't stand this “social contract” language. It makes it sound like an older and younger generation sat down at a table and reached an agreement mutually beneficial to all. That is hardly what has happened. In reality, a few power brokers from an older generation passed a law that takes away income from the younger generation, so that the older generation might spend it on themselves. The younger generation never had a say in the matter. As a consolation prize, they have been promised “Don't worry. We'll make this right in a few decades by robbing your neighbors children and giving their money to you!” The social security statement sends a message with a pleading tone: “please don't let YOUR generation be the one to break the promise!” I didn't even know that was an option. By all means, tell me how I may legally break this promise and I'll get right on that. Of course, that's not what they're getting at. This is a plea for your vote. Please don't vote for anyone that may try to repeal this program, because that is breaking the promise, and breaking promises is BAD.
2. Even if the program was solvent, the terms of the program are criminal.
Again, from my social security statement:
Your estimated benefits are based on current law. Congress has made changes to the law in the past, and can do so at any time. The law governing benefit amounts may change because, by 2037, the payroll taxes collected will be enough to pay only about 76% of the scheduled benefits.
Can you imagine what the US Government would do if a private insurance company had a prospectus that said they could change the payout terms of their policies at any time? That they could change the dates they were going to start payouts on? Oh, and most important, that if they did this, you could NOT cancel the policy?
3. The program abuses single people.
Do you know anyone that's single and 60 years old right now? What happens if they die today, under this program? All of the money that they and their employers kicked in for the last 40 years...likely vanishes into the rabbit hole. This program does not allow them to declare a beneficiary. It's their spouse or their children or their parents. If they don't have those, the money reverts to the government.
4. The return on investment is criminal.
Given a simplistic hypothetical situation of someone who works from age 20 to age 67 making $50000 every year. After 47 years $291400 has accumulated. The estimated monthly payout at that point is $1792/month, or $21500/year. (see below link to run your own scenarios)
http://www.calcxml.com/calculators/socia...
Given a life expectancy of 80 (see below link for substantiation)...
http://en.wikipedia.org/wiki/List_of_cou...
...just what kind of “benefit” is Social Security providing you?
Let's see. This is going to be $21500 per year, and 13 years...that's $279500.
The benevolent, caring US government has taken $291400 and through the magic of compound interest and 47 years...turned it into $279500. They presumably are pocketing the $11900 difference as a handling fee.
Now, lets take the government out of the equation. You and your employer have a similar 401K retirement plan. You put in 6.2%, he matches you. You are invested in ultra-conservative funds which only yield 2% per year. After 47 years, $485800 has been accumulated. If you do not make it 47 years, the funds pass to your beneficiary. If you do make it, you can spend down your nestegg at a rate of $3115/month.
I have just gotten started. I'm sure others will chime in with good points as well. Of all the points I have raised, it is #1 that frosts me so much. How can we call ourselves the land of the free when we have been forced into a social insurance program? How many people under 40 actually WANT to be in this program? This amounts to charity at the point of a gun.
I limit myself to four points and already fear I may exceed the character limit for a post.
1. I have been forced into it, and there is no way to get out of it. That describes a jail, not a retirement program.
These words are found on my social security statement:
Social Security is a compact between generations. Since 1935, America has kept the promise of security for its workers and their families. Now, however, the Social Security system is facing serious financial problems...
I can't stand this “social contract” language. It makes it sound like an older and younger generation sat down at a table and reached an agreement mutually beneficial to all. That is hardly what has happened. In reality, a few power brokers from an older generation passed a law that takes away income from the younger generation, so that the older generation might spend it on themselves. The younger generation never had a say in the matter. As a consolation prize, they have been promised “Don't worry. We'll make this right in a few decades by robbing your neighbors children and giving their money to you!” The social security statement sends a message with a pleading tone: “please don't let YOUR generation be the one to break the promise!” I didn't even know that was an option. By all means, tell me how I may legally break this promise and I'll get right on that. Of course, that's not what they're getting at. This is a plea for your vote. Please don't vote for anyone that may try to repeal this program, because that is breaking the promise, and breaking promises is BAD.
2. Even if the program was solvent, the terms of the program are criminal.
Again, from my social security statement:
Your estimated benefits are based on current law. Congress has made changes to the law in the past, and can do so at any time. The law governing benefit amounts may change because, by 2037, the payroll taxes collected will be enough to pay only about 76% of the scheduled benefits.
Can you imagine what the US Government would do if a private insurance company had a prospectus that said they could change the payout terms of their policies at any time? That they could change the dates they were going to start payouts on? Oh, and most important, that if they did this, you could NOT cancel the policy?
3. The program abuses single people.
Do you know anyone that's single and 60 years old right now? What happens if they die today, under this program? All of the money that they and their employers kicked in for the last 40 years...likely vanishes into the rabbit hole. This program does not allow them to declare a beneficiary. It's their spouse or their children or their parents. If they don't have those, the money reverts to the government.
4. The return on investment is criminal.
Given a simplistic hypothetical situation of someone who works from age 20 to age 67 making $50000 every year. After 47 years $291400 has accumulated. The estimated monthly payout at that point is $1792/month, or $21500/year. (see below link to run your own scenarios)
http://www.calcxml.com/calculators/socia...
Given a life expectancy of 80 (see below link for substantiation)...
http://en.wikipedia.org/wiki/List_of_cou...
...just what kind of “benefit” is Social Security providing you?
Let's see. This is going to be $21500 per year, and 13 years...that's $279500.
The benevolent, caring US government has taken $291400 and through the magic of compound interest and 47 years...turned it into $279500. They presumably are pocketing the $11900 difference as a handling fee.
Now, lets take the government out of the equation. You and your employer have a similar 401K retirement plan. You put in 6.2%, he matches you. You are invested in ultra-conservative funds which only yield 2% per year. After 47 years, $485800 has been accumulated. If you do not make it 47 years, the funds pass to your beneficiary. If you do make it, you can spend down your nestegg at a rate of $3115/month.
I have just gotten started. I'm sure others will chime in with good points as well. Of all the points I have raised, it is #1 that frosts me so much. How can we call ourselves the land of the free when we have been forced into a social insurance program? How many people under 40 actually WANT to be in this program? This amounts to charity at the point of a gun.
The lie to me is the same one that people who use their income tax refund as a savings account believe. I get black, lifeless looks when I tell people that they've given that money to the government interest free for a year.
"A sale," said Rearden slowly, "requires the seller's consent."
—Ayn Rand, Atlas Shrugged
You are absolutely correct that the whole point of SS is to buy votes. I figured that out in high school and knew it was nothing but crap. Even though I'm am only in my early 40's, I do not expect a single penny from SS by the time I supposedly will retire, this includes my retirement I'm supposed to get from my military service. Considering the government has already been raiding the Federal Retirement System to fund who knows what, I believe my suspicions are valid.
Who'll have the guts to stand-up on the pulpit and truthfully explain this to the American people? When? A gradual, phased-out approach to SS, medicare, medicade needs to happen. Peeling back the layers of the rotten socialist onion won't be easy, but at some point, it will have to happen.
Leadership, statesmanship and a clear vision are a must to oversee, explain and ensure such a gradual withdraw and shutdown of these programs and agencies happen. Other than the 401k, (assuming we have an actual, capitalist economy intact) if you have other ideas, I'm all for hearing them.