Here's what the 1936 government pamphlet on Social Security
said: "After the first 3 years -- that is to say, beginning in 1940 -- you
will pay, and your employer will pay, 1.5 cents for each dollar you earn,
up to $3,000 a year. ... Beginning in 1943, you will pay 2 cents, and so
will your employer, for every dollar you earn for the next 3 years. ... And
finally, beginning in 1949, 12 years from now, you and your employer will
each pay 3 cents on each dollar you earn, up to $3,000 a year."
Congress' lying promise: "That is the most you will ever pay."
1935, President Franklin D. Roosevelt promised the American people that the
new Social Security Tax would be invested at 3 per cent interest, so that,
by 1983, the tax could be ended and returns on the investments would guarantee
a retirement income for all Americans.
But reality is different.
Around ’83 Social Security had hit its second fiscal crisis. The tax went
up - not away. Instead of 1% on $3,000, we now pay 6.2% on $97,500. That is more than 6 times the original tax rate levied on twice the inflation adjusted earned income. Our employer pays that much again in our behalf. We now get reduced and delayed benefits that are taxed again upon receipt even though the money
was taxed before (FICA).
the Social Security sacred cow faces bankruptcy. The money collected for all these years from
all the workers has been spent. The money is gone. Instead of a pile
of money (asset) generating investment income, as in an annuity, the
Trust Fund only has government IOUs. The Trust Fund flirts
with bankruptcy. The only asset remaining is a government promise to
pay. The only way to keep that promise is to again increase taxes and/or
the fund has no assets, only government promises to pay the debt, the only way to pay the trillions of dollars the government owes is
to raise taxes, borrow the money, or simply print it. Taxing leaves
people with less to spend on their own wants and needs. Borrowing
increases taxes just to pay the interest without lowering the actual
debt - debt goes up not down. Printing money is also easy but destroys
peoples' savings (including their savings for retirement) because of inflation and lowers the standard of living
since inflation makes everything more expensive.
we are talking really big money!
What kind of retirement is forthcoming from Social Security? The average benefit is about $1000 per month! Who can live on that these days?!
impending reality stack up against the original promise? Is
Social Security really secure for you and your children? Can you really afford to retire on Social Security?
still rather not trust your nest egg to capitalists?
Each $100 saved in 1936 would
be worth $7 now thanks to government inflated
Compare this to the stock market. Back in ’36 the DOW was at about $100. Last
I looked the DOW is still around $10,000. So instead
of losing almost all your savings to state sponsored inflation and depending
on Social In-Security, each $100 invested in the DOW then would be worth
about $10,000 now.
hundreds of dollars have you and your employer paid into the so-called Trust
Fund over the years?
How can Social In-Security be in the public interest?
If not the public interest, whose interest has
all this money served?