The Trust Fund Myth

Another Source of info

A quote from Greenspan:
Finally the truth has been spoken: Social Security, in its current form, cannot be sustained. Federal Reserve Chairman Alan Greenspan warned a House Budget Committee that because of the budget deficit and the retiring baby boomers, future cuts in Social Security and Medicare will be needed to prevent tax increases that would damage the economy. Since this is unacceptable to the Gimme Generation, Democrats immediately went into hysterics.

But Greenspan is absolutely right. People need to get it through their thick skulls that Social Security is broke. There is no trust fund. The lockbox is empty. Current beneficiaries are paid off by later ones. In private business, this is called a Ponzi scheme, and they put people in jail for it. What is being perpetrated on the American people with Social Security is so fraudulent, it makes Enron look like a bike ride.

Right now, as you read this, Social Security is $26 trillion in debt. President Bush has proposed allowing younger workers to invest part of their own Social Security money, but this is just a half-measure. The program needs to be privatized as soon as possible. Under a private system, beneficiaries would see a dramatically higher return on their investment than the current system. As it stands now, you will get far less from Social Security than you put in when you retire.

Remember: there is no Social Security fund waiting for you when you retire. It's all a big lie.

The thing I find disgusting is how the social securty systems is used as a political pawn. Both parties know it is broken, but instead of looking past their differences and fixing it, they bicker about who's fault is that it's broken. Congressmen don't have to worry about retirement money, it's guarenteed by an act that they themselves passed. To bad that they can't do the same for their constituents.

You can bet one thing though, whoever is in office (Democrat or Republican) when SS crashes, they're screwed. The American people will get pissed and vote with a vengence against the party in office.