US social security: funding the ownership society

Headline: United Airlines says it can't pay $9.8 Billion in Pensions. Yet they have an infinitesimal problem compared to the Congress of the United States. Congress has an unfunded $11 Trillion Social Security "pension" they haven't either put in the bank or recorded on the people's books.

The pilots and stewardesses think they have a problem. Wow, they have no idea what a problem really is. Yet our MSM, the Democrats, the liberal elite, Democrat Congressmen all proclaim "Hey, no problem, No hurry, we can obstruct Republicans" until the unrecorded liability is $25 Trillion (and we have to cancel Social Security.)

United's problem is not unique. American business is transitory. At any time, one corporation is capable of being outdated, out hustled, replaced, outworked and creatively destroyed in all sorts of ways. That is our system. That is our strength.

But workers have a problem. Knowing that government's Social Security is a mere pittance of what it takes to finance retirement, private pension plans were born. But now with the destruction of that leg of the pension stool, real security begs the question, how can America permanently fix social cost like pensions both public and private?

And can we solve the riddle of funding health costs, the kid’s education, life insurance, disability, survivors' benefits, long-term care at the same time. The answer is yes. And that no doubt raises your level of skepticism about my sanity. And it should. But not for long.

America's tax system has at its core, payroll taxes. Such taxes are not deductible in determining taxable income like property taxes are. They are the universal levy everyone pays weekly through withholding or quarterly by estimate. They amount to 15% of the earnings of all Americans up to $90,000 of their earnings per year.

Unfortunately for American workers, payroll taxes are remitted to the federal government to pay benefits and the balance left over immediately spent by Congress to pay for other bills. Now let's take a flight of fancy and pretend that 2004's $500 Billion in payroll tax receipts didn't flow to Congress's General Fund but into each individual taxpayer's personal retirement account each year for 40 years and invested in stock market index funds.

Now, we empirically know that the annual rate of return on stocks for the 89 40-year periods from 1911 through 1999 was 9.7%. Using that rate for compounding purposes would generate a nest egg for 2004's Social Security participants of $243.5 Trillion.

In 2004, there were approximately 62 million families in the United States which would mean each family will have accumulated a $3.9 million nest egg with which to pay for their retirement, health care, life insurance, long-term care, disability and survivor benefits and throw in the kid's college education.

Now ask yourself what American insurance company or group of companies wouldn't salivate at the prospect of insuring a group of people for these risks knowing the group would be worth $243.5 Trillion. And be sure that they would provide life insurance for those that didn't make it to retirement thus insuring their base of coverage.

The competition for the business would be fierce. As health care improves, the insurable risks diminish over the years. Spreading the risks over such a large "universe" further diminishes the costs. Eliminating government and corporate responsibility for these social costs will generate an enormous net savings to the economy.

As the premiums paid the insurers would also compound over the years, the portion of the nest egg that the insurers would own could be for example 50% of each family's nest egg, leaving $2 Million per family to will to their kids and $2 million per family to the insurer in compounded premiums before risk payments.

Look. Today we have a problem with social costs. Those problems should be lifted from the shoulders of the public and private sectors and reside in the hands of the people. Let's face it, both the public and private sectors have made a mess out of these social costs.

There is no reason General Motors has to charge $4,000 per car just to pay pensions. There really is no need for unions. With a proper safety, security and affluence plan in place, the supply and demand for labor can be normalized. No longer will an uneducated dock worker make three times a teacher's salary.

And literally no one will miss the make-work bureaucracy. A true "ownership society" is fundable and will solve all that. And it is transportable and transparent. No tricks, no fear, no private or public interference with the "individual" our Founders crafted this country for.

And folks, if we can fly to the moon, we can find a way to transition into this new construct.

They are the universal levy everyone pays weekly through withholding or quarterly by estimate. They amount to 15% of the earnings of all Americans up to $90,000 of their earnings per year.
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I think the author needs to review, and be careful not to mislead the uninformed, as to what working Americans, especially the higher wage earners, really pay, in TOTAL TAXATION (all taxes) each year. It is OBSCENE -- and it amounts to over 50% of our income.

Congress has an unfunded $11 Trillion Social Security "pension" they haven't either put in the bank or recorded on the people's books.

Hey homes. Tell me again about that Social Security Trust Fund Lock Box thing. Lyin' punk.

"I think the author needs to review, and be careful not to mislead the uninformed, as to what working Americans, especially the higher wage earners, really pay, in TOTAL TAXATION (all taxes) each year. It is OBSCENE -- and it amounts to over 50% of our income." -- EagleUSA

Rush makes it known every day at his web site:

Only the Rich Pay Taxes! NEW UPDATED FIGURES: Top 20% Pay 80% of Taxes

Details here: http://www.rushlimbaugh.com

The pilots and stewardesses think they have a problem. Wow, they have no idea what a problem really is. Yet our MSM, the Democrats, the liberal elite, Democrat Congressmen all proclaim "Hey, no problem,

Reid to Kennedy, what happen? I was planning to tax the airlines to save SS. Kennedy to Reid, $$$h happens. Lets get Walmart.

Congress has an unfunded $11 Trillion Social Security "pension" they haven't either put in the bank or recorded on the people's books.

Absolutely, only an idiot would want to hold office when the public finally figures it out. Its going to be a real rowdy party.

<< United's problem is not unique. American business is transitory. At any time, one corporation is capable of being outdated, out hustled, replaced, outworked and creatively destroyed in all sorts of ways. That is our system. That is our strength. >>

United's problem is that it needs to be allowed to go out of business.

United, like Ford and General Motors and scores of other American Corporations, in fact failed many many years ago and it has since been fascistisocialistically made part of the welfare state.

But now that United's pensioners have been extended feral gummint welfare how long before its similarly Peter-Principled and mobbed-up-unions' run "competitors" line up at the trough for their dole hand-outs too?

And, not to mention, General Motors'.

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