As of March 2010, the Social Security system of the United States of America now has a negative cash flow -- spending more money on benefits that it takes in via payments into the fund.
In fact, there is no fund -- it all goes straight into other federal government expenses, which currently far exceeds revenues and will continue to get progressively worse for the foreseeable future.
President Franklin Roosevelt (Democrat) introduced the Social Security system in 1935. Republicans in Congress wanted it to be voluntary but Democrats were in control and yearning for socialistic reforms so the system became mandatory.
The program required employees to pay 1.5 cents for each dollar they earned, beginning in 1940, up to $3,000. The employer was required to match the contributions. In 1943, the contribution was to increase to 2 cents per dollar, and in 1949 scheduled to increase to 3 cents per dollar.
"That is the most you will ever pay." promised Congress in their 1936 Social Security pamphlet. Had congress lived up to its promise, the maximum annual Social Security tax would be $90 instead of over $6,000.
When the Social Security program was first set up, its funds were put into a secure trust account. To cope with huge expenditures during the Vietnam War, President Lyndon Johnson (Democrat) and the Democratically-controlled congress eliminated the trust fund whereupon Social Security taxes were diverted directly into the general fund.
The Social Security Trust Fund no longer exists. It's now a "pay as you go" system.
Today, the Social Security system is a sheer disaster. People are living longer and the birth rates have been leveling off. In 1950, there were 16 workers for every person receiving benefits. Presently, there are only 3 workers for every beneficiary. By 2018, there will be only two workers per beneficiary.
In March of 2010, the system started running a deficit, paying out more money than it takes in. In the near future, as Baby Boomers enter the system, it will be unable to pay promised benefits.
Simply raising Social Security taxes is not the solution. To maintain promised entitlements, Social Security taxes will have to eventually be raised to an astonishing 45 percent of wages.
The national debt (money borrowed against the future to be paid by future generations) currently exceeds $12 trillion. Our nation's annual deficit is at the highest levels in history with no end in sight. We spend more than we take in and defer this irresponsibility onto our children and grandchildren. Every child born in America today is automatically $52,000 in debt.
To add further damage to this obscene debt burden, the Obama Administration bullied a national health care system into law, which adds further to the national debt and requires 16,000 new IRS employees to administer the collection of mandatory insurance fees.
When Medicare was first created in 1965, the politicians projected the cost in 1992 would be $3 billion. The actual cost in 1992 was $110 billion. These same inept politicians have driven this country into a $12 trillion national debt. Instead of reforming a broken health system, the Obama Administration expanded the broken system into a colossal, expansive, expensive, bureaucratic, ineffective broken system.
The collective insanity of those running this country can only be measured in cubits of donkey and elephant dung.
Or perhaps there is another explanation.
Power doesn’t corrupt -- it attracts the corruptible.
There is a growing belief among thoughtful citizens with a brain larger than a walnut that this disaster was orchestrated by powerful global elites, particularly international bankers (Rothschild, Rockefeller, etc.), in order to gain control of the entire planet (a New World Order). Their ultimate goal is a one-world government, with a one-world single currency, maintained and controlled by these international bankers. Thus, they would become even richer and more powerful.
And in order to achieve this goal of global dominance, they must first bring down the current financial systems, particularly the USA.
Global disasters require global solutions. However, upon close scrutiny, those who create the disasters become those with the solutions, thereby manipulating events in their favor.
Democracy is the illusion that someone is listening. In reality, you’re either the property of others or you’re on your own.
Freedom is living your life as you choose, as long as you are not infringing on someone else’s freedom.
More government means less freedom.
Those currently in power in the USA are systematically enslaving their subjects and thrusting the country into financial ruin.
The first course of action when you are being enslaved by others is to recognize you are being enslaved by others.
The second course of action is to do something about it. Plenty of options -- ignore it, pretend it doesn’t exist, play golf, get drunk, bang your head against the wall, go fishing, watch TV, eat lots of food, go shopping, make more kids, play tennis, paint a picture, clean out the garage, go dancing, seek divine intervention, snap some photos, new hairstyle, take a nap, bitch and moan, meditate, wish upon a star, etc., etc.
Quote for the Day -- “The American people will never knowingly adopt socialism. But, under the name of liberalism, they will adopt every fragment of the socialist program, until one day America will be a socialist nation, without knowing how it happened.” Norman Mattoon Thomas (1884-1968 -- six-time presidential candidate for the Socialist Party of America)
Bret Burquest is an award-winning columnist and author of four novels. He lives in the Ozark Mountains with a dog named Buddy Lee and where the price of freedom is higher than a cubit of dung. His blogs appear on several websites, including www.myspace.com/bret1111