The Social Security Imbroglio

by Liberty and Power

Those who have followed the Social Security debate touched on in L&P by Sheldon Richman and others, may find this essay in the Harvard Magazine by Jeffrey B. Liebman of the JFK School of Gov't & Public Policy of interest.

I was fortunate as a teacher in Florida to have the option of not being a part of the Social Security system, and continued in that mode over the fifteen years in which we were pressured with some penalties to switch over, investing these funds in the property developments of Marina Const. Co.

My concern is with being taxed in the future to support a mess I have tried to avoid, even though I did, over the years have to contribute to it for several years early in my career.

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Max Swing - 2/27/2005

Yeah, that's always the best although not everybody has the means to do private investments in Europe.
If fifty per cent of your wages is already taxed away, you don't have a lot of choices left to spend money on private retirement funds (except your are in a good job with 60k + ).
So, if our welfare-system collapsed (that is probable after all), many older people would be left without any savings to draw back on.
And already my grand-pa has said that one day we will have to save money for two people, if you want something for yourself when you retire.
And that's exactly what's waiting for me....

William Marina - 2/26/2005

Max,
I am retired with a pension based on sound intestments and a number of my own firs- rate annuities. I would be hard pressed to spend it all before I die unless the world situation goes to hell.
What I dislike is being taxed in general to support those folks on SS, although I sympathize with their position.
Spain is always an option since I have Hispanic grandparents and could obtain citizenship after one year.
Guillermo Francisco Marina

Max Swing - 2/26/2005

If you are pushed into the state-social-security program, I can tell you what your future will look like. Since I am German, I am used to all kinds of welfare and social security programs. Not only that the state gets 50% of my wage, I also don't get anything back later.
Social-Security has been divided in two parts in Germany: Retirement-funds and Unemployment-payments.

I won't take up any unemployment-payments (because this would reduce the amount of monthly retirement payment) and I already know that I won't get the amount of money back that I paid to the state, when I retire.
It is a vicious-circle that has been blast out of control due to the Socialist idea of a generation-contract. Of course, such an ideal is totally useless in a free-market environment, because the state tried to "save" the money for you. But the state doesn't produce anything, so the saving had no real worth.

I believe that'll be the idea of the Neo-Cons on the long run, because it would really fit in with the bible. At least, that was the argument that allowed the Socialists to get the law through, because the Christian Democratic Union (=Republicans ) was divided on this issue. The Christian part tended to allow the generation-contract, while the free-market thinkers opposed it.

Just to give you an idea, where social security can head...