The Flaws of Social Security

September 2, 2010 04:37

The program should be phased out over a systematic period. Beneficiaries could be compensated from the general fund (which is, at least, honest accounting) and young people freed to opt out of the tax with the full understanding that there will be no federally issued retirement check for them to collect when they hit old age. There won’t be anyway.

by  Anthony Gregory at Human Events


‘The program is patently unsustainable, despite what its proponents tirelessly claim. For many years, Social Security took in more than it paid out and the leftovers were squandered on whatever political priorities were “pressing”— disheveled war efforts, social welfare, bailouts and the like. It was through this accounting that Congress produced illusory budget “surpluses” in the 1990s.’

‘For example, courtesy of the COST Calculator, a 22-year-old college graduate making $30,000 can expect to be taxed $86, 611 by a floundering Social Security program over the course of his or her lifetime—which, alternatively, could have yielded a nest egg of $621,342 if privately invested. At 45 years old, a high-school graduate making $70,000 can look forward to forking over another $105,485 to the Social Security Administration. If he or she were free to invest that cash, the same individual could expect an estimated return of $346,555. Instead, as conditions stand, this citizen is left to grovel for whatever crumbs may be available when he or she retires a generation from now.’


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