Today we have a guest blogger, a friend of mine who wishes to remain anonymous. Here are his thoughts on Social Security:
The myth of the Social Security Trust Fund is one of the most pernicious bald-faced lies in political and financial history.
The "Payroll Tax" has been spent in real time as normal revenue for generations, creating a debt--not an asset that can be drawn upon--that will not be paid or will be partially paid by taxing future generations. I have known this for 25 years, but very few people believed me when I tried to explain it. They trusted the lies about a Trust Fund that the government and the mainstream press were telling them, and they couldn't believe that I could be right when Al Gore said it was all true in a national campaign on national television.
Any attempt by financially responsible individuals, whether Republican or Democrat, to try to rectify the situation over the decades has been demagogued by the Democrats, who fraudulently scare old people by claiming that the reformers are trying to steal their money paid in over the years. In reality, their money had long since been stolen by a free-spending Congress. What the Dems didn't want was a cut in their own tax revenues, which are used to purchase re-election.
Yes, there have been Republican leaders complicit in this scheme over time, and Republican legislators have helped spend the money. But the attempts to reform have generally come from conservative Republicans and the absolutely dishonest scare-tactic propaganda has always come from the left.
It is inconceivable to me that only journalists from the Wall Street Journal editorial page, Forbes, and The National Review were able to stumble upon this truth over the last 30 years. All the investigative journalists at the NY Times, The Washington Post, The Boston Globe, etc. have chosen to ignore or soft pedal this very important and verifiable fact. Draw your own conclusions as to whether they are stupid and incompetent or committed to liberal orthodoxy.
It is not hyperbole to say that the myth of the Social Security Trust Fund makes Bernie Madoff look like a lousy three-card monte dealer on a street corner in Des Moines, Iowa.
Make sure you save your own money for retirement. Link to a good article about this below, which is what got me on my high horse this morning.