How to Fix Social Security

The government collects Social Security taxes, spends some on current retirees, and then loans the rest to the government to spend in the usual ways that government wastes it – almost as if they just took the fruits of our labor and poured most of it into a hole.

The Social Security Trust Fund is nothing but IOUs (in the form of US Treasuries) because that money was loaned to the government. In other words, it’s gone. Previous generations already spent their Social Security, and now they expect us and our children to pay for their retirement.

Social Security is a Ponzi Scheme.

Imagine if all the money collected for Social Security taxes were saved, or better yet, invested. Obviously investing in US Treasuries would just mean that future US taxpayers would pay back the holder of those Treasuries, and we all know that a Trust Fund of IOUs to be paid by future taxpayers is just a Ponzi Scheme.

Imagine if the Social Security Trust fund were invested in a more free market manner in the Americans who paid into it. Imagine if each generation paid its own way. Imagine if the Social Security Trust Fund loaned money directly to the American people instead of to the government?

The way to improve Social Security is to invest the Trust Fund by loaning out the money to Americans at whatever interest rate the market will bear. The borrowers would be among the same people paying into it. We could borrow from the Trust Fund to buy a house, start a business, educate ourselves, or repair our health.

A Trust Fund we loan directly to ourselves is tantamount to investing in ourselves. No, actually, it is better than that. It is an incentive to invest in ourselves; whereas, Social Security today is an incentive to neglect our own future, and Social Security today is an incentive to steal from future generations. Social Security today is corrupting the character of all Americans.

I hope you don’t like the Federal Reserve because the Social Security Trust Fund would replace the Federal Reserve … and thereby eliminate significant financial fraud in America.

Why didn’t FDR do this from the beginning? How corrupt must FDR and everyone since have been to give us a Ponzi Scheme instead of investing the Trust Fund more fairly and more effectively?