Greetings:
I recently ran across this propaganda pamphlet issued by the Federal
Government in 1936.
http://www.ssa.gov/history/ssn/ssb36.htmlGET THIS: "...beginning in 1949,
twelve years from now, you and your employer will each pay 3 cents on each dollar you
earn, up to $3,000 a year.
That is the most you will
ever pay. "
(emphesis added)
That's 3%. Today, you pay 7.65% on every dollar you earn - BEFORE DEDUCTIONS, not
after. You pay on your gross, not your net.
BTW, it started out at 1%.
Full vesting occurred at 65 years old. Today it is 67, but politicians are pushing
hard to increase it. It is only because senior citizens are such a large part of their
constituency that they have not done so already.
http://www.ssa.gov/pubs/retirechart.htmInstead, they have shifted the burden
to the middle aged and young earners via the massive bailout programs. How will that
money ever get repaid? It is impossible based on any economic production model where
the GNP increases (adjusted for inflation) enough to cover new expenses while also paying
off debt. The only way is to inflate so greatly that the value of each dollar is severely
diminished. The government is only obligated to pay in dollars of the year borrowed.
Since current taxes are based on a percentage of current earnings, assuming that earnings
rise at the rate of inflation, the government's take is keeping up with inflation, so
they collect current value dollars and pay off old value dollar debts. It's a win-for
them, while you get screwed.
Think about it this way: Your parent's house payment
in 1980 might have been $400/month - a lot of money back then. Today you cannot even
rent a 2-BR apartment for that much, but they are still making that $400/month payment
at the end of a 30-year mortgage. In 2009 dollars, the equivalent payment is a little
more than $1,000.month. So effectively today they pay $400/month to live in a $1,000/month
home. In the reverse, that same $400 today would have been just $160.
The Keynesian
economic model - like Socialism -has never worked anywhere it has been tried, and yet
some people keep returning to it because they believe that it just hasn't been implement
by the right people. They consider themselves to be the ones finally smart enough to
pull it off.
Hold on, we're in for a rough ride as it proves itself wrong once
again.
