First and foremost, Social Security does not, under the traditional income from payroll taxes, have to go bankrupt, anytime soon. In fact, when designed, the program was required to show how it was self-sustaining. After final adjustments in 1935 it was presented to Congress in a way to prevent any need from the general fund until 1980. However, Congress, being the greedy, spoiled, lying, cheating, thieving children that they are, have not only changed the rules several times, but given themselves permission to legally steal your money and mine from the trust fund through various schemes and legalized fraud throughout the decades; all with the blessing and sometimes at the urging of our various Presidents from both sides of the aisles. According to FDR "If I have anything to say about it, it will always be contributed, both on the part of the employer and the employee, on a sound actuarial basis. It means no money out of the Treasury." He even withheld the tables from the final report to Congress until the figures could be worked and contribution levels presented to ensure it would be self sustaining. Here is where it gets tricky; the Social Security Act specifies that the monies in the fund may "be invested in securities backed by the full faith and credit of the Federal government," such as treasury bills, treasury notes, and treasury bonds, as well as special issue bonds. So, essentially, the government can "invest" Social Security funds by lending them to itself, then spending that money on programs not related to Social Security (e.g., defense, foreign aid, education). It does this every year at such ridiculously low rates that inflation is often higher than the return on these funds. Any fund manager, from any private reputable investment company, that managed the trust the way Congress meddles annually with our Social Security would be arrested on numerous charges and face decades of prison time. Congress doesn’t because they gave themselves permission to mismanage and poorly invest our money without permission from the trust being required. Dwight D. Eisenhower used money from Social Security’s forced investment in the government to rebuild Europe after WWII and Congress and the President in years later forgave some of that debt ensuring that a full repayment would not be made except from the general fund and only at the lowest of returns. Like I said, this has been happening for decades.
Saturday, September 29, 2012
Social Security, Damn Right I Am Entitled!
Today, I thought I would introduce Social Security as a topic for the next couple of days. Today I will rant and discuss a little about how we got into this mess. I know what I write will offend a lot of people I know, but please be patient as I lay out the case for proper understanding and reform in the coming days.
First and foremost, Social Security does not, under the traditional income from payroll taxes, have to go bankrupt, anytime soon. In fact, when designed, the program was required to show how it was self-sustaining. After final adjustments in 1935 it was presented to Congress in a way to prevent any need from the general fund until 1980. However, Congress, being the greedy, spoiled, lying, cheating, thieving children that they are, have not only changed the rules several times, but given themselves permission to legally steal your money and mine from the trust fund through various schemes and legalized fraud throughout the decades; all with the blessing and sometimes at the urging of our various Presidents from both sides of the aisles. According to FDR "If I have anything to say about it, it will always be contributed, both on the part of the employer and the employee, on a sound actuarial basis. It means no money out of the Treasury." He even withheld the tables from the final report to Congress until the figures could be worked and contribution levels presented to ensure it would be self sustaining. Here is where it gets tricky; the Social Security Act specifies that the monies in the fund may "be invested in securities backed by the full faith and credit of the Federal government," such as treasury bills, treasury notes, and treasury bonds, as well as special issue bonds. So, essentially, the government can "invest" Social Security funds by lending them to itself, then spending that money on programs not related to Social Security (e.g., defense, foreign aid, education). It does this every year at such ridiculously low rates that inflation is often higher than the return on these funds. Any fund manager, from any private reputable investment company, that managed the trust the way Congress meddles annually with our Social Security would be arrested on numerous charges and face decades of prison time. Congress doesn’t because they gave themselves permission to mismanage and poorly invest our money without permission from the trust being required. Dwight D. Eisenhower used money from Social Security’s forced investment in the government to rebuild Europe after WWII and Congress and the President in years later forgave some of that debt ensuring that a full repayment would not be made except from the general fund and only at the lowest of returns. Like I said, this has been happening for decades.
Why is this important? Because, the federal government has become so drunk on abusing the funds it forces the trust to invest in US government bonds etc, that Congress has literally forced the trust into near insolvency several times. Instead of fixing the problem, Congress and the Presidents have attempted to shore up the program by increasing the retirement age, taxing the Social Security income of seniors if they make too much money etc. To add insult to injury the current administration gave everyone a “payroll tax holiday” over the last year cutting the income Social Security receives while continuing the time honored tradition of misusing the funds; all in the name of stimulus. This is just about the stupidest idea this administration has implemented in his first term. It further erodes from the trust in ways never intended by its’ creator, FDR.
I’ll end with this for today; I am entitled to this money. It is a combined 15% from my employer and me, invested in a quasi retirement account. It is my money, it is not part of the general fund and should not be treated as such and it is high time we understood and hold these thieves accountable for the misappropriation on our money. You’re damn right I am entitled. This money is meant to go to a special fund and invested in such a way as to ensure I am not a burden later on in life to society or the government. Every Congress and President for decades has broken that trust with the American People and I for one and tired of it.
First and foremost, Social Security does not, under the traditional income from payroll taxes, have to go bankrupt, anytime soon. In fact, when designed, the program was required to show how it was self-sustaining. After final adjustments in 1935 it was presented to Congress in a way to prevent any need from the general fund until 1980. However, Congress, being the greedy, spoiled, lying, cheating, thieving children that they are, have not only changed the rules several times, but given themselves permission to legally steal your money and mine from the trust fund through various schemes and legalized fraud throughout the decades; all with the blessing and sometimes at the urging of our various Presidents from both sides of the aisles. According to FDR "If I have anything to say about it, it will always be contributed, both on the part of the employer and the employee, on a sound actuarial basis. It means no money out of the Treasury." He even withheld the tables from the final report to Congress until the figures could be worked and contribution levels presented to ensure it would be self sustaining. Here is where it gets tricky; the Social Security Act specifies that the monies in the fund may "be invested in securities backed by the full faith and credit of the Federal government," such as treasury bills, treasury notes, and treasury bonds, as well as special issue bonds. So, essentially, the government can "invest" Social Security funds by lending them to itself, then spending that money on programs not related to Social Security (e.g., defense, foreign aid, education). It does this every year at such ridiculously low rates that inflation is often higher than the return on these funds. Any fund manager, from any private reputable investment company, that managed the trust the way Congress meddles annually with our Social Security would be arrested on numerous charges and face decades of prison time. Congress doesn’t because they gave themselves permission to mismanage and poorly invest our money without permission from the trust being required. Dwight D. Eisenhower used money from Social Security’s forced investment in the government to rebuild Europe after WWII and Congress and the President in years later forgave some of that debt ensuring that a full repayment would not be made except from the general fund and only at the lowest of returns. Like I said, this has been happening for decades.
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