Social Security

The Social Security Retirement Plan is a “defined benefit plan” like a Pension plan.  The benefit is based somewhat on the amount of money we “contribute”, tut once contributed”, it is no longer our money.  It was enacted in the 1930s as an “old age retirement plan”.  Benefits were not payable until age 65 and the average life expectancy in the 1930s was age 65.  Later, recipients were allowed to claim a smaller benefit at age 62 or a larger benefit at age 70.  Companies set their own retirement dates at age 65. 

Social Security Retirement could have been designed as an owned account, so that families could receive the balance of the undistributed contributions upon the death of their parent, but is wasn’t.  Congress preferred to keep the money they had already spent.   Likewise, inheritance taxes could have been rejected to allow families to receive all of their parents’ property without giving half to the government.

Social Security Retirement allows the surviving spouse to receive half of the deceased spouses’ benefit and there is a small burial payment nobody takes the time to collect.

The number of people who die before age 65 is still high enough to keep this Ponzi scheme going.  US Workers have contributed 15% of their earnings to their Social Security accounts. Those who averaged $50,000 a year for 40 years contributed $300,000 to their accounts.  If they had been allowed to own these accounts and had invested them in stocks and CDs, they would have an account balance of $1 million. This account balance would have belonged to the participant and eventually to the participant’s family.

Recipients view their Social Security Retirement payments as a loan to the government that needs to be repaid.  We believe that the government needs to leave this plan alone until they can convert it into a plan that allows participant ownership and investment in something that offers earnings based on the free market.

The US government needs to drastically reduce government spending, reduce government debt and allow the free market to restore proper pricing in education and healthcare and allow the private sector to move our economy out of debt.

Corporations who want continued excess spending should not be allowed to continue to influence public policy.

Norb Leahy, Dunwoody GA Tea Party Leader