Social Security Tag's Archives
Another “Pay-As-You-Go” concept. Such a system does not create savings, which means when inflation and or interest rates are above zero, money is essentially lost. With our demographic upheaval of worker to retiree ratios, it became a Ponzi Scheme. Someone is left holding the bag when the cash runs out; as things stand, that means everyone under 50.
When Social Security starts paying out more than it takes in, whether it be 2012, 2015, or a few years later, the system will be running a deficit in real terms because the trust is virtual. If you put $10,000 in the bank, take it all out for some home repair and maybe a few weekends in Vegas, that money is gone, IOU or no. If you write an IOU to yourself to replace that ten-grand, and you stick to your word, you still have to come up with the money somewhere…that original 10k, again, is already gone. The Social Security Ponzi Scheme thus was a not-so-elaborate method of shoveling trillions of dollars into the mouths of politicians and out onto their pet projects…original intention aside.
alternative investment, business agreement, business law, Business Management, business term, conman business, Economy Inflation, government action, illegal business, Inflation risk, interest rate, investment term, payroll tax, Ponzi Scheme, public pensions system, Social Security
Next year will be the retirement year for Uncle John. He’s been toiling in one Flint GM factory or another for 35-plus years, and he’s about done with it. Work— tinkering with cars, boats, and home remodeling tasks— can still give him a charge, but crawling out of bed every weekday morning at 5 to slap together torque converters wears on him. He’d rather spend time hunting and fishing, and also with his grand-kids.
John is pretty young for retirement. He’s in excellent shape— SAY NO TO Alcohol and Cigarettes and he’s able to carry his 150lb outboard trolling motor down a flight of stairs into his basement every winter’s eve for storage. He’s paid into the Social Security pensions system since he was a teenager, when payroll taxes were 6%. Most of that money went straight to retirees drawing direct benefits at the time. Today, payroll taxes are 12.4%, a partial reflection of a trust fund set up in 1983, so John’s kids and grand-kids, and nephews, wouldn’t have to worry about their Social Security later on. Just like John isn’t one to worry.
Americans business nature, Better Retirement Life, Business Culture, Economy Inflation, Extra Income, Financial Freedom, medical expenses, payroll taxes, Pension Plan, Retirement Life, Savings Management, Social Security, solvency crisis, Western Society
