The Third Rail - Social Security

That is the dirty secret about immigrants they are the only ones who can keep our Ponzi scheme of a retirement system going.

 

This is literally how the system was designed and everyone knew it at the time.

 

This is not what everyone knew fdr was going to implement. There is a reason he threatened to pack the court…

 

It works exactly like an employee pension, you pay into it while you work and thus "earn less," and then in retirement you draw money less than what you earned while you were working. Has nothing to do with its constitutionality.

 

This is false. He threatened to pack the court to get over their objections. There have been some changes along the way increasing the covered jobs, adding families/dependent and disability coverage, along with an increase in the tax rate for those additions but the fundamental structure of SS is exactly as proposed and passed.

 

No. A employee pension actually provides the return based on what they paid in. SS has to steal from younger generations to provide the return it promised…

 

Taxing 6.2 times the initial rate on a max taxable that is 3 times what inflation would have it be is not what was put in place. Now I do believe fdr knew exactly what he was doing. It is why he is in the argument for worst President of all time.

 

Mainly because the government has promised more than it can give based on what it taxes.

 

The fundamental funding structure has remained unchanged. Adding on benefits and correspondingly increasing tax rates does not change that.

 

I had no clue adding benefits was making younger generations pay more to receive less.

 

Huh? You tried to excuse what is going on by saying it is about the government borrowing.

That is not the issue. The issue is the government has promised more than it could pay for. So they now need your kids and grandkids to fund your SS like they needed yours to fund your parents and grandparents SS.

 

Here is fdr in a message to congress in 1935...

"
6. MESSAGE TO CONGRESS ON SOCIAL SECURITY. JANUARY 17,1935

In addressing you on June eighth, 1934, I summarized the main objectives of our American program. Among these was, and is, the security of the men, women, and children of the Nation against certain hazards and vicissitudes of life."

If only that is what he put in place. This statement absolutely speaks to creating a safety net for those in true need.

But that is not what he implemented. He implemented what his famous quote speaks to..." “I guess you’re right on the economics. They are politics all the way through. We put those pay roll contributions there so as to give the contributors a legal, moral, and political right to collect their pensions and their unemployment benefits. With those taxes in there, no damn politician can ever scrap my social security program. Those taxes aren’t a matter of economics, they’re straight politics.”"

fdr was terrible. He purposely created a redistribution program and not a program to protect against certain hazards and vicissitudes of life". He is in the top 3 for causing the most long term damage this country has ever seen!

 

I don’t think you understand the program or its intent as first enacted. Funding was key to the debate. Some thought the accounts should be individualized contributions whereas others argued that older workers wouldn’t possibly have enough time to save up individually. They ended up enacting it with collective funding, not having each person fund their own account.

So from the start the very first monthly payment went to a worker that had contributed a whopping $25 to the system and her first monthly check was for $22. She ended up being paid over $22k on just $25 of contribution. So no, the funding structure has not changed; it’s always been funded by the working generations.

 

I just posted for you a few of fdr's take on SS. He said the right thing. But implemented the exact opposite. And I think fdr was a smart man. He knew exactly what he was doing!

This was not about protecting Americans against "CERTAIN" hazards and vicissitudes of life. It was about creating a dependence on government. In doing so he implemented a redistribution program from younger generations to older. Evil. But brilliant.

 

If there was means testing from day one then this would be a different story...

Instead we have created the largest ponzi scheme in history. And your kids and grandkids will have it worse than you. Just like you had it worse than your parents and grandparents generation. Unfortunately I do not think we will ever get enough people to understand this. As we continue to justify making our kids pay more to receive less.

 

We cannot continue with the assumption that we will not cut benefits. Which they are actually willing to do. They are absolutely considering the idea of raising the retirement age. So your kids and grandkids can work longer paying more and get back less. But you will get yours…

I know that comes off strong. But it is reality. And I think it is important to get the point across if we want to make meaningful change.

***the “you” is addressed to the everyone***