Tuesday, September 13, 2011
Tuesday, September 13, 2011 3 comments
Rick Perry has come up with some numbers to authenticate his claim that Social Security is a Ponzi Scheme, and they are real numbers. Rick Perry in a guest Op-Ed in USA Today, “By 2037, retirees will only get roughly 76 cents back for every dollar that is put into Social Security unless reforms are implemented. Imagine how long a traditional retirement or investment plan could survive if it projected investors would lose 24% of their money?”
Well yes, those are truthful numbers, sort of. If nothing changes to improve revenue, then by 2037, beneficiaries (not taxpayers) will only get 76 cents instead of a dollar in benefits. This will continue if nothing is done or the economy doesn’t change in anyway until the Baby Boomers start to die off, and then benefits will start to increase again until they reach 100% in I would guess about 2057, give or take a few years. IF NOTHING IS DONE AND THE ECONOMY DOESN’T CHANGE. When they talk of hundreds of trillions in unfunded obligations, they are just lying. Let me repeat, THEY ARE JUST LYING, PERIOD.
The fact is that the average “taxpayer” who pays FICA will get 97 cents on the dollar as 3 cents go for administration. Some will get much more, those who die early get zip. Fully one third recipients are widows, orphans and the disabled. All of these must have either paid in themselves to be eligible, or their parents if orphans, or their spouse if a widow. Most of this category of recipients will pay in to the system in the future having avoided dying in an orphanage sweatshop, or the brothel for widows. As for the disabled, in Rick Perry’s world they would be taken care of by angels. Just an aside, faith based groups who help the poor get 2/3 of their money from the Feds.
Republicans would “privatize” the Social Security system or in other words funnel it into Wall Street, taking 40% for themselves, like they do with healthcare. They would enhance profits with sweatshop orphanages, brothels, and the disabled better get in good with an angel.
The 401(k), as birthed from the Hellmouth by Ronald Reagan, was supposed to make the demise of Social Security happen as workers would be so enthralled with Capitalism that the would demand the privatization of Social Security. In 2005, George Bush pushed this plan with predictions of a 20,000 Dow and the WSJ was talking that a 35,000 Dow was to be expected by 2020 with the reliability of the sun rise. We now have an 11,000 Dow and my view is that we will see a 1500 Dow in the near future.
The reality is that 401(k)s can not pay off at their current “value”. This is why they don’t let you cash out your 401(k) but you must wait until far into the future. This is the real Ponzi Scheme, the money isn’t there, all money paid out comes from “new” money coming in. The real “Mr Ponzi” (Wall Street) is taking all the money for himself, except for those who get paid early to make the scheme seem valid. The occasional crash, (blamed on the poor who bought houses) resets the expectations of those who continue to pay in.
Rick Perry maybe so stupid that he doesn’t have a clue how this really works, but he doesn’t care anyway. He knows that if the money goes to Social Security, then he doesn’t get big bribes from the Wall Street bankers, so he know what he “thinks” about it. He’ll repeat the talking points, and cash Mr Ponzi’s check. www.prairie2.com