Archive for September 16th, 2011

September 16, 2011

Safety Net v. Retirement Program – CNN Tea Party Debate in Florida – Social Security

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How the Republican debaters are missing the message

Republican Presidential candidates Rick Perry and Mitt Romney got into a battle over Social Security in the last debate. Neither one has a clue what the American people want. As the pollster John Luntz discovered people want a solution that doesn’t impact current participants in Social Security but creates a retirement program that is owned by the people and not subject to invasion and manipulation by the government.

Mitt Romney supports reforming the present safety net plan. Rick Perry supports state plans like the one run in Galveston. As both are run by governments, both fail the smell test – people don’t trust government with their money. Both candidates have been threatened by Democrats and people in their own party to avoid Social Security because it scares seniors. The Democrats will fiercely attack them on this point in next year’s election. Well thank our lucky stars for Perry because he brought the unsustainable program front and center for all to debate.

Well any kid in the sandbox knows a taxpayer can’t create a nest egg and sustainable monthly income without investing. Millions of people are currently accumulating a nest egg and a monthly retirement income by investing along with their employers in pension funds which in turn invest those funds in the stock market. Unfortunately too many of those funds are poorly managed and many of them are currently underfunded.

As the ever-increasing number of poor and many in the middle-class don’t have the funds to invest in the market how can a retirement plan be created? The answer is apparently too simple for politicians to grasp. By taking the 15.3% paid in Federal payroll taxes and returning the ownership of those funds back to the taxpayer in his personally-owned investment account dedicated to investing indexed-stock funds the people would rejoice in the intelligence and creativity of their representatives in creating a real retirement program for them.

Jobs, jobs, jobs

Immediately the influx of new capital of more than $100 billion a month being fed into our stock market and economy would create over 20 million new jobs in two years. Remember the people want Congress to concentrate right now on jobs rather than debt by a 2 to 1 margin. Privatizing Social Security and investing those funds right now would not only create jobs but replace the need for government to steal from future generations to stimulate the economy. The latter doesn’t work that well anyway.

Of course if we personalize Social Security John Q. Public would be investing in the future of our country. We wouldn’t need to rely on the whims of the “rich” to create jobs. The rich will be scrambling just to keep the ball rolling. They will be working 24/7 just managing the funds of John Q. Everyone will be richer.

How richer you ask? Well let’s take a gardener skimping along with a $30,000 annual income helped by his wife who works as a waitress and makes $20,000 a year. They pay $7,500 in payroll taxes and during a 40-year working life will have invested $300,000 into their investment account. That amount invested weekly for 40 years at the average rate of return of the S&P 500 since 1871 would generate a $4 million nest egg and a $33,000 a month retirement check without invading the corpus (the $4 million).

Now can we afford it? If we afforded Obama for 4 years we can afford anything. We can retire our obligations to our seniors and invest in personal accounts. The cultural shock of such a move would make all Americans move in the same direction – make the stock of the company they work for grow and thrive. Our growth rate in the first few years would approach 10% or an increase of over $1.5 trillion a year in GDP.

For a complete discussion of such a plan visit http://www.riseupamerica.us.

The people no longer want a safety net they want a retirement program.

They want $33,000 a month not $1,300. They want a $4 million nest egg not a goose egg.


September 16, 2011

Ann Coulter on The Doctors: Sex is the subject, also single mothers, birth control and sky rocketing teen pregnancy.

Ann Coulter on The Doctors: Sex is the subject, also single mothers, birth control and sky rocketing teen pregnancy.

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September 16, 2011

Is Social Security a Ponzi Scheme and why is Thomas Friedman a Hyperbolic Hypocrite

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Rick Perry called Social Security a “Ponzi” scheme and NYT’s Thomas Friedman had a cow.  Now Tom didn’t really have a cow.  I just used that word to colorfully exaggerate Tom’s response to Rick’s use of the phrase “ponzi scheme.”  It’s called hyperbole.  Rick’s hyperbole has now been taken literally by the press, Democrats and his presidential opponents.  Thankfully it has driven the dialog to the point ordinary taxpayers and voters might consider evaluating this unsustainable pathetic excuse of a retirement program.

It has always been a ponzi-like scheme where new participants in the program pay the benefits for older participants.  Unfortunately when it was started 42 workers supported one retiree. Today it is down to three workers and fast approaching just two workers to support each retiree. Tom Friedman knows this too, but he refuses to admit it because he is just another propaganda pimp for liberals at the socialist rag called the New York Times.

Now if you think I am harsh on old Tom remember I use hyperbole and it is just his mindless support of demand-side economics that moves me to be so harsh. Everyone including Friedman admits Social Security is broken.  Everyone admits that the pay-as-you-go scheme of funding the program is bankrupting the nation and something has to be done.

However, Friedman wants to fix the program without specifying how. He is like all Democrats. They know privatizing Social Security will destroy their hold on government as they rely on special interests like retirees and big government programs like Social Security to keep them in office.  Opposing privatization also makes a great straw man for Tom to keep his books selling.  Add hypocrite to his sins and that’s no hyperbole.

It is simple as this. If the nation is collectively stupid (not just uninformed) they will try to repair a broken Social Security system.  If  the nation magically gets informed they will opt to replace our Social Security system with one that will increase a retirees monthly retirement check over 20 times that presently paid by our government-controlled system.

That’s right. Just about any privatization system can increase benefits. Chile has one; so do two counties in Texas. I reject those systems because they are controlled by governments.  I have proposed one that is controlled by the people and out of reach of Congress, the states and the municipalities.  And rather than increase benefits five times the Rise Up America plan increases benefits 20 to 50 times.

See  http://www.riseupamerica.us

Now look for Tom Friedman to oppose this plan. It would seriously cut into his rant that he is for the little guy. Rise Up America makes the poor rich. Tom Friedman can’t abide that. It would destroy socialism and the “common good” tune he has been playing for years.

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