Bad solutions to Social Security

Whilst reading a discussion on the state of Social Security I noticed some conceptual errors, which if not corrected, could lead to very bad results.

Social Security is not a welfare program. It is not a wealth redistribution program. It was created in FDR's time as a one size fits all retirement fund. Every working person is forced to pay a percentage of their income into it so that upon retirement, they will continue to live in a life style similar to the one they had before retirement. At the time this idea was sold to the public, pure redistributive Socialism and welfare simply were not acceptable ideas in polite society.

If someone from a conservative view point puts forth an argument that applying a means test is a way to save Social Security, a way to turn it into a 'social safety net', they are buying into a deadly shift in the ground rules of the argument. Once you agree your pay out from Social Security need not reflect your pay in, you have left the field of play. You have handed the game over to the Socialists and made Social Security a welfare program. It becomes yet another redistribution program 'for the poor'.

No one should fall into that trap. Social Security is an alternate to private retirement savings plans. It was created out of a mind set that said individuals are not adult enough to save for their own retirements. It was created out of a mind set that said private entities could not be trusted to hold such investments and pay them back as promised.

The terms of the discussion we should be taking part in is that not only are these statements false, they are disastrously, blatantly false. When a private program fails, some number of people are indeed harmed. When the time comes to pay the piper on the Government program, millions upon millions of people will be screwed out of their retirement savings.

We can also make the argument that politics has allowed the entirety of Social Security to become an enterprise so flawed that if similar actions occurred in a private company, they would be decried as criminal offences. Individuals carrying out such schemes would be compared to Bernie Madoff. They would be worse than Bernie: by comparison he ruined the lives of a very small number of Americans, not many tens of millions. Social Security proves yet again that the government is incapable of running pretty much anything. If you want a disaster, let the politicians run it.

When the collapse finally arrives and the Ponzi scheme can go no further; when the taxpayer can no long bail out a failed scheme and hide the criminal nature of it all, I very much hope thousands are indicted for the crime. Every person who served in Congress and the Senate who voted to raid the program or undermined the T-Bills on which it rests and every bureaucrat who ever worked for the Social Security Administration who went along with the fraud deserves a long prison sentence.

We need to give poor Bernie some company after all, and he can learn how it is done by the real Pro's.