Imagine you walk out to get into your car, and it’s gone! What do you do?
- Some people call the police. If they have purchased insurance, they also call their insurance company.
- However, our finest, most upstanding citizens call their congressman. They beg him to tax the “other guy” and buy them a new car. After all, the government has lots of money, and everyone else does it.
Think the latter alternative is a joke? It’s not. We have too many real world examples. Here are a couple.
- Don’t people buy flood insurance, now run by the Federal Government, so they can replace homes they know will be flooded. Why would they do such a thing? They want to live a nice spot they know is prone to flooding. For example, have you ever seen North Carolina’s Outer Banks? It’s a beautiful place, but only an idiot would sell flood insurance there. One big hurricane, and it’s all gone. So, after finally realizing the sheer stupidity, the Federal Government has turned much of the Outer Banks into national park. Anyway, here is a brief history of the program, Commercial Flood Insurance History. Keep in mind that lots of people still make money off of the program.
- We had this “housing bubble,” the inevitable result when our government insisted that banks provide people with bad credit housing loans. What happened? When bad credit risks could not pay off their loans, our government start bailing out banks and people with bad credit. See here, here, and here.
The Big Frauds
Because we tax the “other guy” to bail us out, we are destroying our nation with debt. In 2011, 57 percent of Federal spending will involve health care (23%), pensions (21%), and welfare (13%) (from here).
Consider how programs like Social Security and Medicare work. We tax the young, the children and grandchildren of the old, to pay for the retirement and health care of our senior citizens. Supposedly, the elderly have earned this privilege. Didn’t they pay for the retirement and health care of their parents and grandparents?
BULL! If a private enterprise set up such a scheme, government would declare it illegal. Why? Social Security and Medicare are Ponzi schemes.
In a futile attempt to rebut the comparison, the Social Security Administration (SSA) even provides the following web page, Ponzi Schemes vs. Social Security (Note: Originally, I linked to the SSA website. For some reason the SSA broke the link. I guess the SSA discovered their argument just drew attention to the fact they operate a Ponzi scheme. UPDATE (2018-03-14): Link is back up.) What the SSA argues is that their Ponzi scheme is a “pay-as-you-go” system. However, a “pay-as-you-go” system is just a particular type of Ponzi scheme. Ordinarily, the participants in a Ponzi scheme expect to make some money, that is, a profit on their investment, but SSA claims that Social Security has a redeeming feature. When they become beneficiaries, the best their investors can expect is that they might get their money back — if they don’t die first.
Supposedly, Social Security even has a Trust Fund. Here is what the SSA says about that wonderful fund.
Far from being “worthless IOUs,” the investments held by the trust funds are backed by the full faith and credit of the U. S. Government. The government has always repaid Social Security, with interest. The special-issue securities are, therefore, just as safe as U.S. Savings Bonds or other financial instruments of the Federal government. (from here)
That’s right, that “trust fund” is a bunch of worthless IOUs. The people who lead us are very efficient. They do not wait to spend our money. They spend it faster than they can take it from us. Consider this year. At the end of FY 2011, we can expect the Federal debt to rise to $15.476 trillion (from here). We will pay $207 billion in interest on that debt, and we will have increased it by $1,645.1 billion.
You have heard of inflation? That’s what we call increasing the money supply. Social Security and Medicare pays off its “pay-as-you-go” beneficiaries in US dollars. If (to pay off our nation’s rising debt), the Fed just starts printing money (QE1, QE2, and QE3 to come), our money will become worth less.
So What Is the Fix?
We must admit the truth. We trusted politicians we should not have trusted:
- There is no Social Security Trust Fund. It’s gone.
- We have no right to force our children and grandchildren to pay for our retirement and health care bills.
- Government largess just empowers lying politicians.
- Given the opportunity, ruthless politicians will use mountains of debt to enslave us.
The money is gone. Social Security, Medicare, and all the other government charity/welfare programs are frauds. They are just excuses that enable lying politicians to rob one set of citizens at the behest of another.
We must rid ourselves of the liars. We must rehabilitate the thieves. We must admit we have no right to rob our own children.
Are you on Social Security and Medicare? Are you approaching retirement age? Then call your congressman. Tell him to stop using you as an excuse to rob your children and grandchildren. Do not punish your own children for the thievery of the past.