May is Social Security Month
For some reason, May seems to be Social Security announcement month. QandO blog has a post on the Social Security and Medicare trustees' announcement that both programs will be exhausted in 34 and 12 years respectively. So, I thought this might be a good time to revisit my post on Social Security from this time last year.
Social Security is a Ponzi Scheme 05 MAY 2005
Now it all becomes comes clear. Charles Ponzi couldn't have dreamed up a better scheme. Our government claims 12.4 percent of every worker's wages couched as a retirement investment, then steals from the retirement Trust Fund to mask excessive spending, and guarantees to payback those retirement investments with the power to tax those workers to any extent necessary.
This is exactly why I supported the Bush Administrations' progressive Social Security reforms. At the same time, I can't understand the undying defense and support (from the left of all places) for the most regressive tax ever imposed on the American worker.
What's an alternative? Let's say the average moron making minimum wage ($6.25) invests $1560 per year into U.S. Treasury Bills (just like the Social Security Trust Fund) for 47 years starting at age 18. Let's say that Treasury Bills returned 4.5 percent (a very low investment return but par for T-Bills) on our morons investment. What's that? How do we know this person is a moron? Becaue this moron worked for 47 years and never once got a raise.
Our moron could retire at age 65 with approximately $265,000 in the retirement account. This moron could now retire at 100 percent of his highest salary without touching the principal investment. Excuse me? What kind of sadistic son of bitch takes $1560 a year from someone making minimum wage? Well, that would be the Social Security Administration.