Verbal Kent, in describing Keyser Soze in the movie “The Usual Suspects“, used a quote from a French poet: “The greatest trick the Devil ever pulled was convincing the world he didn’t exist.” I think it’s a pretty apt description of what our politicians (see Meat Puppet) have done to this country with the Social Security system. The Old-Age and Survivors Insurance Trust Fund, created during the depression, is a pay-as-you-go system. Collect sufficient funding (taxes) from earnings each year to make the promised payments to eligible recipients. Seems simple enough, no?
This is the government we’re talking about – the folks who have $1 billion in dollar coins stashed in federal reserve vaults because nobody wants them… yet continue to mint them. Starting in 1937 the fund has collected more than it paid out virtually every year. Beginning in 1982 that surplus got big – Carl Sagan-ish, Billions and Billions big. Every year. The current overage collected stands at $2.54 Trillion. What prudent savers our politicians are! Open up an interest bearing checking account at Wells Fargo (free checks!) and we’re all good, right? As Albert Einstein famously didn’t say, “the most powerful force in the universe is compound interest”.
Here’s where sleight of hand that would make PT Barnum blush starts. By law the social security fund can’t keep excess money collected. Instead, they print out a bond / IOU and put it in a special lockbox. All that extra money is turned over to the general fund and the trust and care of our elected officials. What could possibly go wrong? As soon as we’re not collecting enough annually to pay social security benefits, we just go back to congress and cash in some of those IOU’s right?
Those of you with weak hearts or the vapors may want to collect yourself before reading further. Here goes – they spent it. All of it. Like drunken sailors on a three-day pass. Spent on exhibits for the Czech and Slovak Museum and Library in Cedar Rapids. Spent on mosquito trapping research in Gainesville, Florida. Spent on foreign aid to China (yes, China) and Russia. Spent on U.S. troops in 150 countries. Spent on a war in Afghanistan that has no end, for people who despise us, for no discernible goal or outcome.
6% of your paycheck, every paycheck, year after year, is taken from you. Employers kick in another 6%. All for a promised benefit upon retirement. Now that we need to start cashing in those IOU’s, the politicians are going to have to cut out spending on something else in order to pay that debt. They won’t do it. They are incapable of not spending. Too many promises to too many groups. You can’t get (re)elected by actually cutting spending. You’ll piss off someone who has their hand out. So what do you do?
Easy! Claim that we need to “strengthen” the social security fund. We need to “save” it. If debt ceilings aren’t raised, social security payments may not go out. Those who can most afford it can contribute more. We don’t want old people out in the streets. Human sacrifice, dogs and cats living together – mass hysteria. (Peter Venkman) Now that you’re sufficiently frightened that grandma will be down at the soup kitchen, we can raise taxes. Bump up the contribution percentage. Increase the retirement age. Decrease the benefit received. Make it a “means tested” benefit. Gnash my teeth, moan, tear my hair, and wave my hands enough over here that you won’t pay attention to all the spending I’m doing over there. We need to do something about this crisis! We can’t let all those evil rich people collect a benefit they don’t need or deserve. Bastards need to pay their fair share.
Mic check, mic check! We should occupy someplace about this. Can’t let those 1%er’s steal my social security. Occupy is the answer! Right after I find someplace to plug in my iPad. Battery running low.