Posted by
OldRelayer on Wednesday, October 17, 2007 7:11:59 PM
This is where many of you may differ from the view I have on Social
Security. Yes I think that private accounts may be a good thing,
most smart people seem to think so. The reason most people in
government don't want to do that is because it is pay back
time. For many years the government has been writing them
self a loan from this account, rather than investing, they used it in
all the ways the government can waste money, then put in an IOU, and
now it is time for pay back. Many think that the hard working
people that put into this account for so many years are not entitled,
in fact it is called an entitlement, which lumps it in with some other
boondoggle entitlements.
I did some rough calculations and my figures are low if anything.
Most tax payers that earn $40,000 or less pay more in SS than in
federal income tax. The average recipient received $900 a month,
folks try living on $10,000 a year with fuel at $3 a gallon for both
car and heating oil, food for two is about $100 a week, if your
lucky.... etccc. Etccc......
So $50 average paid in for a 45 year period seems reasonable, but
low. Or $111,240 with a modest 3%, I compounded the
interest not monthly but yearly which would make it more. The
average recipient gets $900, into 111,240 or 123.6 months or 10.3
years. Using my very low figure the average recipient if they
live that long would have 10.3 years before they touched a penny that
they hadn’t contributed. This doesn’t take into account, people
that died and didn’t collect a penny and people that don’t live out the
10.3 years. I suspect the real figures are almost twice what I
have done. A recipient would have paid in more and there were
times when the prime was at 10%(We sure hope it never happens
again). A more realist figure would be more like 15 to 20
years. Now people are going to complain because we are taking their
tax money, when the FED has taken our money and now paying it
back with our own money and yours.
It all comes back to the mantra “Smaller Government
huuuuummmmmm”. If the government had not over extended and the
money invested wisely. There wouldn’t be a problem. Lets
say it again.... the Federal Government is out of control.