Mon 3 Mar 2008
Social Security Will Never Work
Posted by Jack Gamble - Man Overboard under Babeled, Business, Politics, Society
Imagine celebrating your 100th Wedding Anniversary? I bet you think I’m crazy but guess what - chances are one of your kids will. Consider the fact that the average life expectancy at birth in Ancient Greece was only 20 years. In the US in 1900 that number rose to 46 years. In 2001 the average life expectancy reached 77 years! Here is another startling fact - 90% of ALL HUMANS in ALL HISTORY to reach age 90 are ALIVE TODAY.
Now consider that life expectancy on the day Social Security was signed into law was only 58 and the retirement age was 65. What does this mean? This means that Social Security was designed to have everyone pay into the system while most people died before ever collecting a cent. Even if you did reach the retirement age - chances are you would only live a few more years and at that time, most seniors lived with their children and were not forced to support themselves anyway.
What do we have now?
Average life expectancy in the high 70s - this means that best case scenario - one pays into SS for 47 years (18 to 65) and collects for close to 15 (not to mention college years so make that contribution period 43 years for most people). Have you looked at your FICA recently? Do you think you can live for 15 years on that figure alone?
But wait -
Now consider that many people in our generation will reach 100 years old and some may see 120 or even 130! That means up to 65 years of retirement! How is SS going to pay for the health care costs of a 130 year old person let alone the cost of living for over half of that person’s natural life?
Don’t blame Roosevelt. How is a young guy in a wheel chair with Polio on the verge of WWII supposed to predict numbers like that?
For your own sake, look at the facts and figures. Forget the scare tactics used by Social Security’s proponents. Don’t for one second believe these crooked politicians care about you - they will be long gone when we need our money and their kids are already taken care of. The system is doomed and they are STEALING YOUR MONEY!
The truth is no one banks on Social Security anymore because we all know we will never see our money again. So why on the Green Earth of the Supreme Being of Your Choosing do we continue to allow our hard earned money to be taken from us on the BS promise we will be taken care of? We are on our own people!
Privatization is the only answer to Social Security. Don’t believe the lies about squandering our security in volatile stock markets - If the market collapses we’re all screwed anyway, seniors and juniors alike.
~Man Overboard
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March 3rd, 2008 at 4:39 pm
I’m curious to see how current obesity weights cut into future generation’s life expectancy…
Regardless, we’re gonna have a hell of a lot of older people with bad health who can’t work. And if they can’t work and bring in an income, and if the social security is bankrupt - well that’s going to be an enormous shock to the economy, especially if a back-up plan isn’t in place.
We need legislation passed sooner than later. This is similar to the pollution and oil/energy dilemma where procrastination can’t be an option.
March 3rd, 2008 at 4:43 pm
Good call Andrew, stress and obesity will be a factor. But the trend of ‘better’ health care has been steady. Depending on how optimistic or pessimistic you are, there are experts arguing the case for both longer and shorter lives.
March 3rd, 2008 at 5:20 pm
I have to agree that privatization is the only logical answer. The more you let government get involved with your life the more control you give them over your life. SS has been doomed for years. One of several reasons I support Ron Paul. Since it looks like that pipe dream is over I really don;t see any one left that is ready to do what must be done to give us the ability to take care of ourselves and not rely on the government to do it for us.
March 3rd, 2008 at 6:19 pm
I think most people realize that SS is not ideal. My question is, what is going to happen to all the money we have already put in if we privatize? It’s not a huge issue for us but for our parents that’s a lot of money they entrusted to the government to never see back.
March 3rd, 2008 at 6:48 pm
Can you say mass refund?
I knew you could.
I doubt it would happen and it is impractical, but it would be the right thing to do.
March 3rd, 2008 at 10:33 pm
You can screw a few people now or screw everyone is 30 years. It’s sad but ignoring the problem has made it necesary.
March 4th, 2008 at 7:05 am
Sad isn’t exactly a strong enough word. Devastating would be more appropriate. Totally and completely crippling to some. I think a phasing out of social security would be more fair and practical. That way people could prepare for the rug being pulled out from under them.
March 4th, 2008 at 11:36 am
Devastating is exactly how you would describe it. Old people everywhere feeding off the strong in zombie-esque fashion. Somehow we would need a bipartisan firm (with no government affiliation) to crunch the numbers and determine where the break point (age wise) would be to take care of the elderly and liberate the youth from FICA. Personally, I would be satisfied if I knew that in 7 more years I would no longer have to pay into Social Security.
Nevertheless, there is a flaw in my plan … and it is called bipartisan approach
March 4th, 2008 at 3:07 pm
The first time the social security issue was brought to my attention was in G. W. Bush’s State of the Union probably 6 years ago. Where it was said that it would last until 2043.
So my question is why hasn’t privatization of SS happened yet? Why aren’t our elected officials doing anything about it. I’ll tell you why - because old people who need SS vote.
March 14th, 2008 at 6:19 pm
Keeker!!!
The answer to your question comes from none other than my pal Milton Friedman. I don’t have the actual numbers, but I will create an expample that will make old Miltie’s point. The true answer lies in the actuary tables.
Here’s an example of how the solution might work:
1. All Fica deductions from earnings cease immediately. All future SS payment to recipients will be paid from general tax revenues.
2. All those currently collecting SS will cotinue to collect their payment until they croak.
3. All those who are 55 years old (I made up that age, but it is the age that is based on the actuaries.) or older will collect SS as it is presently designed.
4. People between the ages of 54 and 44 (Once again, I have made up the age which should be based on the actuaries.) will receive their benefits on descending scale with the 54 year olds receiving more than the 53 year olds and so on. Anyone who is 43 years old or younger is screwed.
5. Every wage earner in the United States must designate at least 6.5% of their income to be paid into their personal, qualifying IRA. A qualifying IRA is any IRA that is presently a qualifying IRA.
There are many, many reason why this is a far superior plan than anything government will control. We’ll save that for another discussion.