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August 1, 2011

Social Security is your friend

by beaufou

Social Security isn’t government spending, let’s make this clear now.
It is a fund you and your employer pays into for your retirement, not a hand-out or a free lunch paid for by other workers.
Every time you get a pay-check, 7.5% of it contributes to Social Security while your boss also pays 7.5%, by the time you retire, you get your money back, it’s as simple as that.
The future of Social Security presents not just a crisis for America, but an even bigger opportunity for Wall Street if – and that’s not an imaginary if nowadays – it is privatized.
You have heard the President talk about the possibility of missed payments if the debt ceiling talks were inconclusive, that is a lie or rather, it is a half truth because government excess has all but depleted the Social Security fund – according to Business Insider, Washington has used the fund to buy $3 trillion of government bonds, replacing American workers money with IOUs, and now they would like you to believe Social Security is a problem; they are the problem, not SS.
For example, in 2007, 88 percent of total Social Security tax income was spent immediately for current benefits and expenses, leaving a surplus at $80.3 billion. What happened to that surplus money? The federal government borrowed it and spent it on general budget expenditures.
When Social Security starts running deficits in 2017, the government will have to tax workers again to get the money to pay these IOUs back, so all Social Security benefits can continue to be paid. From 2017 to 2041, when the trust funds are currently projected to run out, taxpayers will have to shell out an additional $6 trillion, besides the payroll tax, because of the raid on the Social Security money, to cover all the IOUs.
Back to Wall Street, if Social Security is privatized, instead of paying into the fund and eventually get your money back, you will be able to choose what to do with it, which is a good thing if you believe 401ks and other banking hoaxes are good for you – studies have shown 401ks returns are inferior to regular savings accounts for the last ten years – on the other hand, Wall Street bankers will be able to multiply your Dollars and pay themselves handsome bonuses while your returns and retirement will be tied to the casino the market has become; you will lose.

Read more from economy, politics

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