Tag Archives: Social Security

THE TEA PARTY vs. THE OCCUPIERS and OTHER RANDOM THOTS

There is no comparison.
The Tea Party members stand for less federal spending, less federal debt, less government restriction, more personal liberty, more growth and more jobs.  As a group they are peaceful, familial, respectful of private property, employed and proud of their American heritage.

The Occupy movement still hasn’t decided what it stands for as a group.  Members have taken stands against corporate bailouts, unequal wealth, capitalism, Israel, anything military and the notion that there is any reason whatever to be proud of their country.  They have asked for bailouts for individuals, free college tuition, higher taxes on other people, (the demonstrators themselves pay little or none), and redistribution of the wealth of others unto themselves.  Their methods are disruptive, sometimes destructive and occasionally violent and frequently illegal.  They show disrespect for the American flag, private property and the rule of law.  They have been unable to control criminal activity within their own group.

Our president expresses support for the Occupiers and holds Tea Party members in contempt.  Until Barack Obama we had never had a President like this.

Where’s the swamp?
The ripest department for corruption in any town is the housing department.  If you have ever dealt with one you know how involved the permitting and inspection process can be.  It is rich with opportunities for those in power to ‘earn’ a little income on the side.  The big opportunities are in the realm of awards to private contractors for municipal construction and other town services.  This is by no means an indictment of these departments as a whole for malfeasance, but where corruption does exist this is where you are most likely to find it because it’s the most fertile ground.

At the federal level, the equivalent that comes to mind is infrastructure programs.  Think about it.

More Republicans should play chess.
Republicans in Washington fell into a trap because they didn’t anticipate the Democrat’s future moves.

The Republicans were set up when they supported a temporary suspension of the payroll tax.  Now the Democrats want to extend it and the Republicans do not.  Obama has been given ammunition for his class warfare battle.  Now Republicans “want to increase taxes on the working man but never on the rich”.

Continuing the payroll tax suspension also plays into the Presidents plan to spread the wealth.  As it stands, the working man is contributing nothing to fund the Social Security he will collect.  Obama wants to keep it that way.

MADOFF WITH SOCIAL SECURITY

This is not original work and I do not know the author to whom to give credit. Whoever it was, they did a good job comparing how Madoff made off with investors money and how the government has made off with our contributions for Social Security.

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Why did Bernie Madoff go to prison? To make it simple, he talked people into investing with him. Then he didn’t invest their money. He simply took the money from the new investors to pay off the old investors. Finally there were not enough new investors coming in to keep the payments going. Now Madoff is one of the most hated men in America.

Madoff did to his investors what the government has been doing to us with Social Security. There is no meaningful difference between the two schemes except that one was operated by a private individual who is now in jail, and the other is operated by politicians.

Here is a side-by-side comparison.

BERNIE MADOFF SOCIAL SECURITY
Takes money from investors with the promise that the money will be invested and made available to them later Takes money from wage earners with the promise that the money will be invested in a “Trust Fund” and made available later.
Instead of investing the money Madoff spends it on nice homes in the Hamptons and yachts. Instead of depositing money in a Trust Fund the politicians use it for general spending and vote buying.
When the time comes to pay the investors back Madoff simply uses some of the new funds from newer investors to pay back the older investors. When benefits for older investors become due the politicians pay them with money taken from younger and newer wage earners to pay the geezers.
When Madoff’s scheme is discovered all hell breaks loose. New investors won’t give him any more cash. When Social Security runs out of money they simply force the taxpayers to send them some more.
Bernie Madoff is in jail. Politicians remain in Washington.

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In a corporate pension plan the corporation makes a pension promise to employees then backs it up with annual cash contributions into a trust fund. The fund then invests in a broad spectrum of securities. If the trust fund managers were to give the money back to the corporation and call it a loan it would be an abuse. The trust would be a sham. But that is exactly how Social Security works.

Funds are withheld from our wages. Our employer matches the amount taken from us and sends the total to the Social Security division. The Social Security  division sends it to a trust fund. The trust fund uses it first to pay current retirees then gives the balance to the federal government to do with as it pleases. The federal government thanks the Social Security division and gives them an IOU called a bond. No investments are made. There is no money in the trust fund, only IOU’s.

Our Social Security scheme is indeed a Ponzi scheme.

Bob B

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