OT
Jerome,
There is one assumption that you are making and it is a fatal one.
The people who contributed to Social Security back in the 30s and 40s have earned an outstanding Return on Investment. The problem is that my "Social Security" tax has not been invested. In fact, the liability that the government will "owe" to me is not even part of the Federal Government's Total Debt calculation. In this day and age of the Enron scandal, I cannot believe that various Senators and Congressmen can call Enron executives "scam artists". Our "leaders" need to look no further than a mirror.
Remember, there is a "cap" on Social Security payments up to about $85k. Therefore, I pay approximately 6.4k per annum and my employer, which happens to be myself again, pays 6.4k per annum. After 30 years, tax free, 6%, contributing 12.8k per annum will grow to a little over $1m.
Personally, the federal government does not have enough money to:
1. Pay interest on our growing debt.
2. Pay social security benefits.
3. Pay medicare and, lastly,
4. Pay whatever entitlement program whether it be welfare or defense. In my opinion, neither provides a positive NPV to the economy.
Unfortunately, I believe our country is run more alike a "fraternity" system. Right now, I am a "pledge" and I must serve my "brothers". The brothers are symbolic to be retirees who continually put the onus on the "pledges".
Not to say that the elderly haven't done alot to make this country great. I believe that many have. The problem I have with the system is that I believe they are receiving too much. Everyone has their hands out. Government money, to the retiree, appears to be "free" since they aren't paying one dime. The retirees assert that they have already "paid their dues".
What I would like to see is a ROI calculation for the "average" social security recipient who retired in the:
- 60s;
- 70s;
- 80s; and
- 90s;
The problem is that the federal government never "officially" borrowed against Social Security Tax receipts. Instead, our political leaders, in their infinite, wisdom have chosen to write an IOU. In addition to this IOU, increased debt and our nation will face a tremendous cash crunch.
Remember, all nations have their rise to prominance, gradual decline and, eventually, their crash. At the present time, I believe that the US is in the "gradual decline" stage. Its only a matter of time before our currency will eventually become practically worthless. |
