The Democrats’ Hot, New Plan: More Social Security


Social Security has a long-term funding gap that just keeps growing. Neither political party has a plan to pay for the promises we’ve already made to people contributing to the system. But Democrats are bringing a new idea to the table: make even more promises.

Almost all Senate Democrats have lined up behind a proposal by Elizabeth Warren of Massachusetts and Joe Manchin of West Virginia to expand benefits for current retirees. Liberals are exulting that Warren has shifted the politics of Social Security to the left: Where once we were debating cutbacks to the program, now we’re debating benefit increases. Too bad that also means the debate is shifting further away from fiscal reality.

Social Security is becoming a worse deal for each generation. Those now joining the workforce are expected to pay more into the system than they get out of it. Warren’s plan is to shower more money on the current generation of retirees, but without increasing the deficit over the next 10 years. That means, in all likelihood, raising taxes on current workers while also increasing the program’s long-run fiscal deficit…

Now, in raw politics, this is a good idea – you see, elder voters are increasingly trending GOP and they tend to vote very consistently…thus playing a huge role in the anti-Democrat blow-outs of 2010 and 2014. In 2016, which is expected to be a close-run race, getting a few more elderly voters to pull the lever for the Democrats might make the difference between President Hillary and President Walker. So, off we go: raise social security benefits for current retirees and hope that out of gratitude they vote for you.

Of course, as noted in the quote, this can only be done by increasing taxes on current workers and it would also, naturally, put a heavier strain on social security in later years. The bottom line is that social security just doesn’t work – it is predicated upon a very large number of working people supporting a relatively small number of retired people. Trouble is, the work force keeps getting smaller and the miracles of modern science are keeping us alive ever longer. My father retired in 1992 at the age of 65 and died in 2009 at the age of 82 – seventeen years of picking up the SS check. Suppose I live 10 years longer than my dad did…even if I retire at 67, that will still work out to 25 years of SS payments for me. And a kid of 25 today might easily live until his late 90’s, or even longer. Meanwhile, we’re not having all that many kids. The program eventually goes belly up. But what is that to Democrats? What they need is a way to buy votes now – what will happen later is irrelevant; whatever happens, their program to deal with it will be to promise more free stuff.

Ok, so how do we fight against this? Can’t just say, “screw the old folks”. That would just play into Democrat hands. We have to come up with some sort of program which both benefits the oldsters while also helping out the younger folks who are paying for the goodies. My preferred option is to start implementing a privatization of social security without being too explicit that full privatization is the ultimate goal (politics is the art of the possible, folks). Something along the line of “10% of the money you pay into ss, today, will go into a private account owned by you and your heirs”. Whatever we do, we have to do it well – because this will be a potent weapon for the Democrats in 2016.


A Doomed Ponzi Scheme

From CNS:

There were only 1.75 full-time private-sector workers in the United States last year for each person receiving benefits from Social Security, according to data from the Bureau of Labor Statistics and the Social Security board of trustees.

That means that for each husband and wife who worked full-time in the private sector last year there was a Social Security recipient somewhere in the country taking benefits from the federal government…

This cannot be sustained – even when you throw in government workers (who are paid out of tax dollars, of course) you still don’t get enough total workers paying in to support those who are taking out.  You probably have to get to at least 4 total workers for each beneficiary for it to be financially stable; and likely 5 or 6 private sector workers per beneficiary.  And it is only going to get worse – even after the Boomers all retire and start to exit the system via death, our rapidly declining birth rate ensures there will be no significant improvement in the worker/retiree ratio.

A Ponzi scheme, just to clarify it for our liberals, is a system where early beneficiaries are paid out handsomely from the proceeds of later entrants.  It all works well until you stop getting enough new people to sustain the generous payouts.  Social Security was first implemented when most people only lived a few years beyond 65 and there were a couple dozen workers for each retiree.  Now we live past 80 as often as not and there are less than 2 workers for each retiree.  This a classic example of a Ponzi scheme…and it is failing just like any other Ponzi scheme.

To be sure, Social Security is too deeply ingrained in American life to be easily or quickly done away with…but it must be deeply reformed just to ensure that older people can get retirement pay and younger people can build up independent means of retirement.  The time to do it was, of course, after the 2004 election…but a combination of Democrats wanting a campaign issue and Republicans who lacked backbone ensured that the Bush’s modest reform proposals were killed.  Now it is 7 years later and things are worse…and they will do nothing but get worse from now on, unless we change.

Additionally, any attempt to get our overall fiscal house in order requires Social Security reform (as well as Medicare/Medicaid reform).  The whole economic future of the United States rests on our ability to develope the courage to act.  Democrats will never do anything but “fear and smear” on the issue, so it is up to Republicans to lead the way…and our first step is to (a) bring the subject up and then (b) so badly beat the Democrats in 2012 that they can’t stand in the way of reform.

Maybe Telling the Truth Works?

According to this CNN poll (PDF), 52% of GOP voters over 65 years old back Perry for the GOP nomination.  Among those 50 and older, 41% back Perry (next in support among this group is Romney, with 22%).  With Pery being the candidate who is correctly identifying Social Security as a Ponzi scheme, this indicates that older voters are ok with the truth…and I wonder if the overall population will be?

It could start a whole, new trend in American politics…where politicians will actually say what needs to be done, regardless of MSM/DNC generated talking points, and the people with a clear eye and common sense just review what politicians say, and then make decisions accordingly.

Imagine what the country would be like?

HAT TIPWashington Examiner

We Can’t Touch Social Security, Unless…

…Obama needs a tax cut and his liberal base won’t let him cut taxes that need cutting.  Jim Quinn over at Zero Hedge explains the problem:

…The party that presents Social Security as a well run outstanding example of government at its finest has decided the best way to create jobs is to double down on you paying even less in payroll taxes than you did this year. We know for a fact the average person will get between 25% and 125% more than they paid into Social Security. The Obama plan last year and again this year is to drastically reduce the amount paid into the Trust fund, so you can have the privilege of consuming the same amount of food and energy at a much higher price. Brilliant plan! It is amazing how liberals and Keynesians can have such disregard and scorn for future generations who will be handed this bill with no means to pay.

The Republicans went along with the 2011 payroll tax cut of 2%. They will go along with the 3.1% payroll tax cut. You see, this is how politics works. Since the payroll tax was “temporarily” cut, whoever lets the payroll tax cut expire will be declared a tax hiker. Therefore, the “temporary” payroll tax cut will be extended indefinitely, further impoverishing future generations. Meanwhile, how many jobs did the first payroll tax cut create? How many will the extended and increased payroll tax cut create? None! Obama is using the George Bush tax rebate check method of destroying the country. Both decided to address a government spending problem by reducing revenues. This is par for the course and explains why the economy is teetering on the verge of collapse…

And we really shouldn’t go along with Obama’s next installment in “temporary” payroll tax reductions.  I know, I know – for us GOPers, a tax cut is always a good thing…and it is, at the end of the day, better that people keep more of their own money.  But if we go along with this, then all we’ll have done is allow Obama to get a campaign talking point while further shoving us in to bankruptcy.  We must balance our budget – this is not a thing we can kid around with or kick down the road.  We have, at most, three or four years before the whole thing falls apart and our government finances become like Greece’s.

For us in the GOP, our duty is to demand massive, across-the-board budget cuts – and, yes, demand tax reform, too; but budget cuts come first.  And in the end, balancing the budget is so important that we must not even shy away from tax cuts…but not until at least $500 billion is reduced from spending.  And I don’t mean “over ten years”…I mean that in FY 2012 (which starts October 1st) we must spend at least $500 billion less than we spent in FY 2011.  If we can’t get at least that, then no tax increase in any way, shape or form can be agreed to.

To call this a serious moment in our nation’s history is to downplay what we’re going through.  Our economy and the global economy teeter on the brink of collapse.  If it does collapse, then hundreds of millions of people will begin to suffer very gravely.  In spite of asinine stories about China replacing us, the fact is that unless the United States pulls out of recession, no one really will.  Only America, properly governed and with a rational economic policy can do what needs to be done.  Our payout if we don’t act properly will be poverty and, very likely, a rapid rise in global tyranny leading to eventual war.

This is not the time for gimmicks – but that is likely all we’re going to get from Obama.  But we, of the Republican party, must have none of that – we must stand for solid, responsible policies which will actually cure the illness…and we must be courageous enough to go in 2012 on such a platform.  Let Obama and his liberals play games, let us save America.

Poll Reveals Americans Understand Big Goverment Scam

From Rasmussen:

…A new Rasmussen Reports national telephone survey finds that 71% of American Adults say the bigger problem with welfare programs in the United States is that too many people get welfare who should not be getting it. Just 18% say the bigger issue is that too many people who should receive welfare do not get it, while another 11% are not sure.

Republicans (91%) and adults not affiliated with either political party (70%) believe much more strongly than Democrats (51%) that the bigger problem with welfare is that too many ineligible people are on it.

Fifty-nine percent (59%) of all Americans think immigrants who follow the law and enter the United States legally should have to wait three years or more before collecting welfare benefits, including 31% who believe they should wait more than five years. Seventeen percent (17%) think three years is enough, while 11% prefer a five-year waiting period…

What is the scam?  Get as many people as possible hooked on Big Government hand outs, then claim that any proposed cut is a cruel, inhuman cut-off of someone who otherwise will die.  Use these in alternating efforts to continually grow government so that you can get ever richer and more powerful.  For the longest time, this worked…but this poll indicates that more and more people are understanding that massive numbers of people are on the dole who really shouldn’t be.

While I have no way to test my theory – it would take a large staff and a pretty big budget to do it – I firmly assert that at least half of the people receiving government benefits should be kicked off and forced to get back to work.  As I’ve said elsewhere, I’ve got a pretty high standard for disability…no one will ever be able to erase from my memory my late colleague who was a wheelchair-bound victim of a horrific genetic disease who couldn’t even use all the fingers of her hands and yet managed to hold down a 40 hour a week job until just a few months before her death.

If she could work, then most people on disability can work.  Period.  End of story.  No, shut up you lazy SOBs with your whines about “stress”…get back to work and get off my wallet.  I’ve got stress, too – a great deal of which stems from having to get up and go to work in the morning while millions of people are on their backside watching daytime television and waiting for their EBT card to be re-filled.  In my view, you’re only excused from working if you can’t work…can’t get out of bed, can’t stand up for more than a few minutes, can’t sit down for more than a few minutes, are blind…missing your legs or arms…something like that (and this is Biblical – In fact, when we were with you, we instructed you that if anyone was unwilling to work, neither should that one eat – 2 Thessalonians 3:10 – so don’t any of you liberals try to throw Christian charity at me…I know the command to charity; but charity isn’t the act of supporting layabouts who can otherwise support themselves).

A great deal of the reform of America will be re-imposing the requirement of hard work.  Hard, dirty work, at that.  A nation which will not engage in hard work is a nation which will die – it is really just as simple as that.  Each person is required to labor to the limit of the talents God has provided him or her – those who can do much, must do so; those who can do little, must still do at least that…and those who really can do nothing, must be provided with every last thing they need from those of us who can.  But there are no free rides – if you are living off the wealth of others then it must only be because there is no other way for you to live.  A complete review of all those on government aid should be done – excluding only those on social security retirement and military pensions (you get SS because you earned it by working…you get your military pension because you earned it by risking your life over many years for your nation) – everyone on government aid should be forced to justify their dependency.  Tell us why you can’t work – show us your complete incapacity for any work whatsoever.  If that is indeed the case, then you can count on us to provide all you need…but if you can work, at all, then you’d better get to work.

Enough is enough – there really is no free lunch and it is time we called a halt to this liberal nonsense.