Wednesday, April 20, 2011
Social Security - Robbing The Middle Class: If not reformed Social Security could do this
If not reformed Social Security could end up up robbing my generation and anyone younger then Generation X. Because we'll end up paying into a system that we won't be able to collect from by the time we are eligible for it. In come cases as little as 15-20 years from now. Its no secret that my generation believes that Social Security won't be around when we are eligible to collect from it. A big reason for this is Washington Politicians who have dipped into this fund to pay for their Special Interest projects. Another reason is because we've over promised generations of americans. That Social Security in its current form won't be able to pay. And another reason for this is because as a country we keep reelecting politicians that dip into the Social Security Trust Fund for their Special Interest Projects. Thinking that they are in Congress and get away with it. As well because Social Security as of today still has a surplus and they figure that it won't hurt the fund because it does have a surplus and it really doesn't need that money anyway. Failing to mention that Social Security perhaps not in practical terms. But in legal terms is a Trust Fund, meaning that all the money that goes into it is suppose to be for nothing else other then Social Security. Thats exactly why its called a Trust Fund. If your a Baby Boomer, a Depression Baby. Not that your depressed just that you were born during the Great Depression. Or part of the World War II Generation, don't worry your in great shape as far as collecting Social Security. But if you were born after those generations, work needs to be done for these people to collect from Social Security.
When it comes to reforming Social Security, I'll just lay out what I'm against first. Because its easier and more fun. I'm not for privatizing Social Security and essentially turning it into another private pension plan. That Economic Libertarians would like to see. Imagine where Social Security would be today if we had done that pre "Great Recession". When the Stock Market crashed, millions of americans would've seen their Social Security go up in flames. Its called Social Security for a reason, because its suppose to be there when we actually need it. Its not called Social Gamble where everyone throws their money into the Stock Market to see where it lands. I am in favor of creating an extension to Social Security which is called Social Security Plus. Where the money that people are currently putting into Social Security would still be there. But where people would be able to open up an additional Social Security Personal Retirement Account. That they along with their employers would pay into. And where people would be able to invest their PRA into the Stock Market and put all gains made from that into the their PRA. As well as put any other revenue that they have, like other investments not affiliated with the Stock Market. Like selling their car for example into their PRA. I'm also not for what some socialists in America would like to see and turn Social Security into the Universal Retirement Fund and nationalize all private Pension Funds. Our Federal Government is simply not qualified to run something this large. We've already seen problems with how they run Social Security. If this Universal Retirement Fund were to go under, America would become United were Screwed.
But before we do anything to add on to Social Security, we need to reform it as it stands today. I believe reforming Social Security as far as what should be done is fairly simple. The question is how do you garner the support to get it done. This is what I would like to see done with Social Security.
Raise the Retirement Age from 67-70 with a Hardship Exemption for people not physically and mentally capable of working that long.
End early Social Security payments for people who make enough money that they don't need that Social Security income.
Raise Payroll Taxes on High Earners who can afford to pay more and lower Payroll Taxes on people that get hit real hard by this tax.
Cut the Social Security payments for people who don't need them if not eliminate them all together. And increase the payments for the people who need them. And can't get by without Social Security.
Social Security is not part of the "Third Rail" of American Politics for nothing. Its the hardest thing in America to touch or fix because it affects all of us. But that doesn't mean we should be afraid to talk about it and reform it. Because if we don't, it won't be around for anyone.