Social Security - A Giant Ponzi Scheme

Social Security was enacted into law 75 years ago in 1935 by Socialist President Franklin Delano Roosevelt as part of his failed New Deal policies. At that time, life expectancy was only about 62 years old so from an actuarial standpoint, most people were supposed to die rather than collect Social Security. Well surprise, well surprise! Free market capitalism produced the finest health care system in world history and when combined with Medicare, which was enacted in the sixties as part of Socialist President Lyndon Johnson's Great Society, people just did not die soon enough.

And, unfortunately, from an actuarial standpoint, things have gotten worse. Not only have people lived longer than they were supposed to, Socialist politicians over the years have expanded the application of Social Security benefits to include the disabled and minors of deceased parents and even kids under the age of 18 if a parent is receiving Social Security. And then, they added one more twist so that if a spouse dies, the remaining Spouse receives the higher of the two monthly payments. In many ways, Social Security has become a welfare scheme rather than a pension system, since those who reach age 65 and continue to work, may never see any return on their contributions, particularly if and when means testing is enacted, which is certain.

A few years ago, the federal government added a little asterisk next to the amount on the annual report each person is supposed to receive at retirement. If you look down on the form, in very small print, it basically says that the amount indicated is not guaranteed and that Congress can change the law at any time to deny benefits. It further says that based on current contributions that there may only be enough to pay 75% of benefits in the future. Social Security has become the largest Ponzi scheme ever conceived.

The World War II generation, the parents of Baby Boomers, did very well related to their return on investment. They paid in very little and since their average life expectancy was longer, they not only got back what they paid in, they got much more back than they ever paid in. Of course, this was only possible because Baby Boomers, paid and paid and paid to support their parents and we are still paying.

And now, the money is not there to pay Baby Boomer's benefits because beginning in 1965, our illustrious elected representatives of both political parties raided the Social Security Trust fund and spent it on various wars, pork barrel spending and new entitlement programs to get re-elected. The Social Security Administration is sitting on a bunch of IOU's, at a time when the Federal government is bankrupt and already $13 Trillion in debt, on the books and probably another $100 Trillion, or more off the books that will be needed to fund Social Security, Medicare and outrageous government pensions.

If something does not change and quick, Social Security's combined retirement and disability trust funds are expected to run out of money in 2037. And at that time, the Social Security Administration will collect just enough in contributions to cover 75% of promised benefits. The good news is that under Obama's HealthScare Plan, once the Death Panels are put in place, people will die quicker than would otherwise occur. And, like it not, at some point, there will be means testing for Baby Boomers, many of whom paid in the maximum; but will never see any benefits at all. The retirement age will have to be raised for those currently under 55 years old. And, no doubt, unless stopped from doing so, the Socialists who control Congress will raise the actual Social Security tax to require higher contributions each month.

If this Ponzi scheme were happening in business as occurred with Bernie Madoff, all of these elected officials going back years that have created the Social Security mess would be in JAIL, not in Congress, or the White House. Of course, that will not happen. The best we can do is throw the bums out of office. And, going forward because the federal government has proven over and over again that they cannot be trusted with our money, at least 50% of Social Security contributions should be privatized for people under 50 years old. In the end, even if Social Security becomes insolvent, younger people would at least have half their money instead of none at all.

We have to bring real change to America by electing Conservatives who support free market capitalism, limited government, lower taxes and less regulation, a balance budget, term limits to help end the corruption in Washington, a real solution for Social Security not more government theft, a strong national defense, including securing our border and fighting Terrorism, real energy independence and health care reform, the right to bear arms, the sanctity of life and family values. This is the platform supported by the majority of the American people and the only way to achieve economic growth and job creation.

The Social Security debacle proves that we must take back our county in 2010 and 2012 by electing Conservatives who support the Constitution, as written by our Founding Fathers, not as contrived by the left wing media, Socialists Obama, Reid, Pelosi, former Presidents, Congresses, or the Courts. We must take back our country in 2010 and 2012. We can do it. We must do it to preserve our freedoms, our nation and way of life and for the sake of our children and grandchildren.