Ron Paul - Want to Reform Social Security? Stop Spending.

Social Security reform promises to be the biggest domestic issue this year in Washington, but most of the proposals are nothing more than flim-flam. The only honest solution to the future insolvency of the program is for Congress to stop spending so much money. Unless Congress makes real cuts in spending-- and stops spending Social Security taxes on completely unrelated programs-- millions of Americans simply will not receive even a fraction of the money they paid into Social Security. Ignore the rhetoric about tax increases and cuts in benefits, as though you are to blame for the problem! All Social Security obligations could be met if Congress did not spend so much on other things.

In the 1930s, Social Security was presented to the American people as a social insurance program, with individuals paying a monthly “premium” in exchange for retirement benefits later. It was supposed to be a forced savings program, based on the assumption that some people would be unable or unwilling to save for their older years. Seven decades later, however, the ratio of younger working people to older retirees has changed dramatically, exposing the Ponzi-like congressional raid on the system itself. What has not changed, however, is our willingness to accept the notion that the government should force us to save for our older years.

Notice that neither political party proposes letting people opt out of Social Security, which exposes the lie that your contributions are set aside and saved. After all, if your contributions really are put aside for your retirement, the money will be there earning interest, right? If your money is put away in a trust fund account with your name on it, what difference would it make if your neighbor chooses not to participate in the program?

The truth, of course, is that your contributions are not put aside. Social Security is simply a tax. Like all taxes, the money collected is spent immediately as general revenues to fund the federal government. The Social Security trust fund does not exist, and Social Security “surpluses” are nothing more than an accounting ledger showing that contributions exceeded benefits paid for a given calendar year-- not that the excess was put aside. Social Security benefits are paid each year from general funds, like other federal programs. Since these programs and overall spending keep increasing, the government can’t give up any sources of tax revenue. Allowing people to opt out of Social Security would force the federal government to admit it has been stealing money from Social Security for decades.

The administration speaks of private accounts, but government-managed investment of Social Security funds is not privatization at all. True capitalism by definition operates without government interference, and we should oppose further government involvement in the financial markets. After all, which government officials will decide what stocks, bonds, mutual funds, or other investment vehicles are approved? Which politicians will you trust to decide what your portfolio may contain? Imagine the lobbyists fighting over which special interests will have their favored investments approved for Social Security accounts. Political favoritism, rather than market performance, will determine what investments are allowed, and Social Security in essence will become a huge source of taxpayer-provided investment capital.

If the administration truly wants to give people more control over their retirement dollars, why not simply reduce payroll taxes and let them keep their own money to invest privately as they see fit? This is the true private solution.

Your money has never been safe in the government’s hands, and it never will be. Governments spend money; it’s just their nature. It is preposterous to believe our government is capable of simply sitting on a huge pile of money without touching it because it’s earmarked for one purpose or another. No matter what politicians promise, Social Security reform will not change the fact that your money is taken from your paycheck and sent to Washington, where it will be spent.

Administrator; Jim Robinson; I apologize for bothering you with this matter but Protagoras has insisting on starting a flame war with me over the proposed Social Security program changes. Now he seems to have involved you in this issue. The following should make it perfectly clear where I stand on the issue and my position in this flame war initiated by Protagoras.

Protagoras has repeatedly pinged me and FReepmailed me to threads supposedly for an education in Social Security but when I respond to specific items in the threads he calls me a liar resorts to juvenile name calling and refuses to answer questions directly instead he responds with generalities while claiming he has answered the questions. I have also observed him using the same tactics on others.

He/She has repeatedly threatened me for disagreeing with him. I do not feel that I have done anything that is over the line but if I have done so please let me know.

LucyLibertarian

Lucy was my Grandmother and she was my guiding influence in creating my political philosophy. She was raised in the Texas Panhandle. She later raised three children on her own through the Depression on a homestead claim in Oklahoma. That was a very hard life and it forged a very strong libertarian political philosophy. But it also made her highly aware of the realities of life and of government.

Her initials were LPM and 1888 was the year of her birth. You might note that the year is 1888 not 1988.

I chose her initials as a screen-name to honor her influence and memory. I made that quite clear when I requested the name change that I was doing so to honor my Grandmother.

She was definitely what today would be called a libertarian and was politically active but she also was very aware of the stabilizing effect that the Social Security program had on America.

Some of the things that she taught me that pertain to the Social Security discussions are as follows.

1. The Depression was caused by speculation in the Stock Market. Speculation is akin to gambling and you don't want your security tied up with something that is essentially a gamble. Private Investment accounts are essentially a gamble with everyones retirement financial security.

2. After the Depression America was in deep trouble, the separation between the rich and the poor had reached the point that many people were losing hope and beginning to consider other forms of government. If you will search your history books you will find that the Communist party was gaining in strength at that time. After the Social Security program was created that influence began to wain. If the Social Security system is weakened the American Government will fall under the control of the first party to offer the American voters a check.

3. Never ever trust a politician especially when they tell you they are going to help you. Even if their intentions are honorable they will screw it up anyway.

Ron Paul is the only politician I have seen in a long time who is honest about what he has to say. It is very refreshing but he also is very ineffective. Washington has become so corrupted that he doesn't have a chance.

I have made it quite clear in the past that I do not trust any politicians. I am not attacking President Bush but I am very aware of the corrupting effect financial influences have on Washington.

I will not change my political philosophy to please you or anyone else.

My Father passed away in 1959 when I was 8 years old and I am male. The background I have stated is definitely my own.

Would you also like to debate the application of high speed networking to Energy Management Systems or how about the design of Emergency Load Shed Systems. My consulting fee for those services begins at $125.00 per hour plus expenses but for you I'll make a special exception.

Here is the how I believe that Social Security should be reformed:

1. Pass a Constitutional Amendment that imposes a tariff on imported manufactured goods and services. The funds from this tariff must be strictly applied to the Social Security system. The same Amendment must prohibit the commingling of the General Fund and the Social Security program. The Tariff should be set at a rate such that the Trust Fund will be on a fiscally sound basis within 10 years.

This will serve two functions; It will begin to stop the hemorrhaging of middle class jobs from our Nation. It will also create an incentive to restore our manufacturing base. This is critical to our national defense particularly with the increasing threat from China.

2. In five years when the Social Security trust fund is sound then make available 2% of the Trust Fund for investment by an independent panel of financial experts. The best way to create this panel would be to have one University from each state appoint one person to an advisory board that would then be responsible for appointing a panel of twelve financial experts who would have the actual control of the investments.

POLITICIANS MUST NOT HAVE CONTROL OVER EITHER PANEL.

That will limit the effect of corrupting influences on this panel.

3. When the investment fund has doubled the original investment then the original 2% of the Social Security Trust is returned to the trust fund and the investment group is free to continue the investments. If the board ever loses all of the original investment then the board is disbanded and then the fund is discontinued permanently.

If the investment fund reaches 10 times the original investment then everyones individual and corporate taxes are decreased propoprtinaly to the amount over that base investment amount. Those decreases in taxes are made available for 401K programs.

If the investment fund is successful then everyone benefits through decreased taxes. If it fails we still have the base Social Security Trust Fund to maintain our National stability.

This plan is superior to other plans that I have seen discussed for the following reasons.

1. It does not create a debt to be paid by our children.

2. It does not weaken or threaten the stabilizing influence that the Social Security program has had on America.

3. It helps curb the hemorrhaging of middle class jobs and manufacturing capacity from America.

4. If the Investment Fund is successful it would eventually reduce or eliminate all Social Security taxes while encouraging private retirement accounts. 5. IT DOES NOT INCREASE THE NATIONAL DEBT.

If my political philosophy does not meet some Conservative purity test so be it. I am not changing it to please Protagoras or anyone else.

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.