0 votes

Ron Paul Texas Straight Talk 12/27/10: Why the Government Lies About Social Security

http://www.youtube.com/wa...

Why the Government Lies About Social Security
by Ron Paul

Perhaps the biggest media story of 2010 was the influence of Tea Party voters on the Congressional landscape. The new Congress comes to Capitol Hill with a mandate to end profligate spending and restore fiscal sanity in Washington, we are told. But when the House and Senate convene in January the newly elected members will face tremendous pressure to maintain spending levels for entitlement programs. Even the most modest proposals to trim Social Security or Medicare spending will be met with howls of indignation and threats of voter revolt. Legislators who propose any kind of means testing or increased retirement ages can expect angry visits from senior citizens and lobbyists ready to fund a candidate back home who supports the status quo.

But millions of Americans now realize that the status quo is an illusion that will not last even another 10 or 20 years. The federal government cannot continue to spend a trillion dollars more than it collects in revenue each year because we are running out of creditors. Fiscal reality is setting in and the consequences may be grim, even if Congress finds the courage to take decisive action now.

Courage begins with a commitment to see things as they are, rather than how we wish they were. When it comes to Social Security we must understand that the system does not represent an old age pension, an insurance program or even a forced savings program. It simply represents an enormous transfer of payment with younger workers paying taxes to benefit the other beneficiaries. There is no Social Security trust fund and you don't have an account. Whether you win or lose the Social Security lottery is a function of when you happen to be born and how long you live to collect benefits. Of course young people today have every reason to believe they will never collect those benefits.

Notice that neither political party proposes letting people opt out of Social Security, which exposes the lie that your contributions are set aside and saved. After all, if your contributions are really set aside for your retirement, the money is there earning interest, right? If your money is in your account, what difference would it make if your neighbor chooses not to participate in the program?

The truth of course is that your contributions are not put aside. Social Security is a simple tax. Like all taxes, the money collected is spent immediately as general revenue to fund the federal government. But no administration will admit that Social Security is nothing more than an accounting ledger with no money. You will collect benefits only if future tax revenues remain high. The money you paid into the system is long gone.

My hope is that at least some members of the new Congress will cut through the distortions to see Social Security as it really is. The best way to fix the impending Social Security crisis is also the simplest: Allow younger individuals to opt out of the program and use their tax savings to invest privately as they see fit. This is the true private solution. Your money has never been safe in the government's hands and it never will be.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

The Third Rail

SS has been referred to as the third rail of politics, you touch it you die politically. The SS system is, like most government programs not actuarially sound. Very few if any politicians are willing to admit this publicly.

Hello

I have tried to explain this repeatedly to my parents who are in their 60's and expect to be collecting social security any day now. That the system started running a deficit in 2010 (estimated $30 billion), even though the so-called experts thought it would be running surpluses until at least 2018. That there is no trust fund and that the whole system is a scam. Most importantly, that they can't rely on it to fund their retirement.

And every time they just shrug it off and say they'll be fine. I don't know who was in charge of pumping the baby boomers' heads full of nonsense for their entire lives, but they were incredibly successful.

Run Ron Run

hello ---

fu** all else.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

Agree!

Agree!

Run Ron Run

FREEDOM!

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

Agree!!

Agree!!

Ron Paul

Run -

The whole country and the whole planet is behind the TRUTH that you speak!

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

I Wish I Could Agree!

I Wish I Could Agree!

Is it just me?

Or is Dr. Ron Paul starting to get more direct, starting to take his gloves off?

Through the years he has been fairly centered on promulgating his ideas, the ideas of liberty, but it seems like he is stepping up his style a notch, and beginning to attack.

Next, it would be nice if he started naming the owners of the Federal Reserve, the wealthy European ruling elites, who've lusted after America's sovereignty since they lost it in 1776, and who are on the verge of creating the collapse of and takeever of America, with Americans' direct support (via our elected officials).

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a rEVOLution before tomorrow morning." - Henry Ford

SteveMT's picture

You mean speaking like the next POTUS should be?

In a word, yes!

Ron Paul 2012

Tell all

:)

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

All Lies

"The state lies in all the tongues of good and evil, and whatever it says is lies, and whatever it has, it has stolen, everything it is, is false, it bites with stolen teeth, and it bites often, it is false down to its bowels."— Friedrich Wilhelm Nietzsche, Also Sprach Zarathustra [1896]

"Truth, for the tyrants, is the most terrible and cruel of all bindings; it is like an incandescent iron falling across their chests. And it is even more agonizing than hot iron, for that only burns the flesh, while truth burns its way into the soul" — Lauro Aguirre

Live in Liberty
Tom Rankin

tell ALL and run...

run with it.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

SteveMT's picture

Bump: If only that lie was the only one!

There are many more where that lie came from, IMO.

great mod work!

I just send you a Thank you email.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

Thanks!

bump for the Straight Talk !

"I think we are living in a world of lies: lies that don't even know they are lies, because they are the children and grandchildren of lies." ~ Chris Floyd

Thanks Liberty Belle

may you prosper in the coming year 2011
cyber hugs*))

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

Bump Texas Straight Talk

Embed and Frontpage

Exercise Your Rights. If You Don't Use Them, You Will Lose Them.
My News Twitter http://twitter.com/sharpsteve
My YouTube http://www.youtube.com/user/sharpsteve2003

Thanks Steve

bump for Liberty!

hope Michael or some moderator sees it before it falls off the active topics forum.

Ron Paul Hope for America!

:)

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15