Obama's Social Insecurity Plan

IBD ^ | May 20, 2008

[Kaslin]

Entitlements: In trying to tie John McCain to the third rail of American politics by pandering to seniors, Barack Obama shows the only thing he's consistent on is his desire to raise our taxes.

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We suspected that the No. 1 liberal in the U.S. Senate would get around to playing the granny card as he shook Hillary off and focused on John McCain. That moment came in Gresham, Ore., on Sunday when he promised to protect "the promise that FDR made" and "preserve the Social Security Trust Fund." He warned that McCain would raise the retirement age and privatize Social Security a la President Bush.

How does he demagogue the issue? Let us count the myths. Fact is, Social Security is all trust and no fund. There's no stash of your cash in an account with your name on it that nobody can touch. The money beneficiaries get comes from the paychecks of their children, grandchildren, friends and neighbors. But with private accounts there would be cash in an account.

What exactly is wrong with letting younger workers put away some of the money they earn into real accounts containing real money with their names on them, a tangible asset producing a greater rate of return, and that can be passed on to their heirs or anyone they choose? Obama calls it dangerous. We call it empowerment.

Another myth is that Social Security was intended to be our sole means of providing for retirement. President Roosevelt, Social Security's patriarch, admitted as much when he said, "We shall make the most lasting progress if we recognize that Social Security can furnish only a base upon which each of our citizens may build his own individual security through his own individual efforts." Private accounts would accomplish that.

[goldstategop]

Social Security was never intended to be a person sole source of income support after retirement. But for liberals to admit it would mean people wouldn't need to look to government to take care of them. And that's not something they want.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[The Iceman Cometh]

This story reinforces my tagline.

[rabscuttle385]

Assuming a worker made $50,000 annually from age 25 to 65. Without adjusting for inflation, at a rate of 2 percent, his Social Security benefits would be $374,492.30 before taxes, or about seven and a half years of equivalent "salary." With a Roth IRA and mutual funds averaging 8 percent, that same worker would have $1,606,150.42 (or thirty two years of equivalent "salary") after tax, a sum that he could bequeath to his wife and children, unlike Social Security. (Note that I included both the employer and employee contributions to Social Security.)

Social Security is a sick joke and any young citizens (including newly-minted college graduates) who are cheering for Obama are allowing the government to brazenly mug them in broad daylight.

[rabscuttle385]

GenX/GenY “Obama’s Social Insecurity” ping

[rawhide]

It would be nice if Obama would back up his asinine statements? It is easy to say the sky is falling, but if there is no evidence to back up what you are saying, you become a blithering fool. Which, I say, Obama is definitely talking himself into.

[TexasNative2000]

What a neophyte.

The Social Security scare will never work for one reason; today's AARPers' were in their 40's and 50's when Reagan was accused of the same thing and they know that nothing ever came of it. It's a false threat and most people who are targeted know it as such.

[craig_eddy]

Even if you invested in savings bonds, you’d have WAY more money, income, and something to pass along to your heirs than you would with social insecurity.

[rabscuttle385]

Even if you invested in savings bonds, you’d have WAY more money, income, and something to pass along to your heirs than you would with social insecurity.

I disagree about the income and money parts, but Savings Bonds can be inherited. In the long run, though, Savings Bonds are a losing proposition.

[prairiebreeze]

bump to read later

[anonsquared]

“preserve the Social Security Trust Fund.”

What Trust Fund? How can you preserve something that does not exist?

[qam1]

Xer Ping

Ping list for the discussion of the politics and social (and sometimes nostalgic) aspects that directly effects Generation Reagan / Generation-X (Those born from 1965-1981) including all the spending previous generations are doing that Gen-X and Y will end up paying for.

Freep mail me to be added or dropped. See my home page for details and previous articles.  

[Don Corleone]

B. Hussein O. is a Communist, Capitalist Hating,Black America First, wolf in an empty, tailored,Brooks Brothers suit. Let him and the liberals take power at the nations peril!

[GOPJ]

thanks for the ping.