Ron Paul to Washington: Stop Raiding the Social Security Trust Fund!

by Ron Paul

There has been a lot of talk in Washington recently about senior citizens, mostly about how various healthcare reform models would help or hurt them. But there is another critical issue that has quietly devastated seniors financially over the last few decades. It concerns how the cost of living is calculated. How does the administration justify not giving a cost of living increase to Social Security recipients this year?

According to the official Consumer Price Index calculation, life has gotten cheaper for the first time in decades. If the government can show statistically that the cost of living has gone down, not up, then they can make the case for not giving a cost of living increase to social security recipients. But does this match reality? Using older calculations of CPI, the cost of living has actually increased – by roughly 5 percent!

The CPI (Consumer Price Index) is a calculation based on the average price of a fixed basket of goods that was initially designed to help businesses adjust for inflation. The government eventually started using it to determine cost of living adjustments for entitlement programs. Couple that with politicians’ discovery that they could raid the social security trust fund to pay for new spending programs, and you have a perfect storm to deny seniors what they were promised, while hiding the true size of the deficit. For politicians, it is a win-win.

For seniors, it is a different story. Economist John Williams of Shadow Government Statistics has estimated that if the original methodology of CPI had not changed, Social Security checks would be nearly double what they are today. This represents a lot of money that politicians have been able to literally steal from seniors, to spend on their own wasteful programs. One example of how they do this is to substitute hamburger for steak, which lowers the average price of that basket of goods. But living on hamburger, or maybe dog food, instead of steak does not represent a constant standard of living. This renders the measurement virtually meaningless, even though politically it comes in very handy.

I have introduced legislation to keep politicians in Washington from ever raiding the Social Security trust fund again. HR 219 The Social Security Preservation Act would assure that all monies collected by the Social Security Trust Fund would only be used in payments to beneficiaries, or be placed in interest bearing certificates of deposit. This would at least stop the bleeding of the fund, and take away some incentive to tease and torture the numbers in order to give seniors the minimal amount. This would also cut off a source of funding for government growth, so it is not likely to get easy support from many politicians.

It is bad enough that Washington imposes high payroll taxes on American workers. The least Congress could do is use the tax dollars for their stated purpose. Instead, seniors will have a harder and harder time trying to survive on a fixed income in an economy based on variables and deception. For them, it is too late to start over. Today’s young people will be forced to pay into the system for years to come. The first step towards solving the impending crisis facing Social Security is to stop politicians from raiding the trust fund and to significantly cut federal government spending.


  • Glenn Simcox

    Wow, a whopping 7, now 8, responses to this salient and important message. I really don’t care where the American public places its allegiance in 2012, I just wish more people were getting involved and researching the issues. I believe that it may be a “now or never” proposition in 2012, as our fictional economy can only last so long before the cards fall. And when they do it is the working class that will suffer and I’m am gravely concerned that “suffer” is putting it lightly.

    Please tell your neighbors, work mates, and anybody who will listen to look closely at the liberties being dissolved and financial meltdown that it inevitable. It is time to act, and we must act swiftly. Our Federal Government is has lied for years and we are then blinded by the media, political spinsters, and the inevitable scare tactics.

    I am absolutely sick and tired of the drain of money and work out of the United States, when it’s gone we have to pay to get both back, as planned.

    My thoughts are simple and any academic who disagrees could easily defeat my simple arguments so let me put it another way as I had to do with an academic at work.

    If I see bellowing smoke coming from a residence I don’t need to know the cause of the fire, nor do I need to see the flames or know the cause. I already have enough information to make the sound decision to sound an alarm and alert those who can respond to the emergency. In the case of our country I am calling upon Ron Paul to put this fire out. I hope you will at least consider joining Ron Paul in his honest and courageous effort to defeat the media, the GOP, the FEDS, the IRS, ETC…and most importantly, restore the United States Constitution to its rightful place and rightful use.

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  • John S. Carrio

    Someone is using MY NAME. I did not author the above letter.

    John S. Carrio

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  • Jones

    Hi, nice letter and most people would agree with you in several issues you are mentioning. Perhaps even in the traditional parties.

    But unless real actions that benefit the population follow any of these elections and proposals the problems will not get solved.

    What I am most tired of is the serial repeat of getting elected with good ideas, and then those ideas cannot be implemented.

    And I don’t like pointing fingers at somebody on every little situation just because is from the ‘enemy party’, because there might be honest people there, just like there has to be some great people that do not belong to any party.

    Example: the idea of keeping clean the environment is a good one, it should open new jobs too; the idea of reforming what is wrong with the health system is also good, because each one of us has encountered difficulties that are critical to you or your family and turned out to be unfair or just plain wrong; most people want to enjoy the freedom of getting to places via your own car, but when a car become dysfunctional too fast and too expensive (let’s say that for ‘magical reasons’) you realize the importance of safe efficient public transportation that will also keep many jobs home, and wonder why that option is not allowed to happen, which makes you wonder about the magic of new cars breaking and having to look for old ones or even set up an updated version of the old west public transportation. For which you still need a legal permit and depend on the government.

    So having good ideas happens frequently, that are also much needed and easily justified as well, but the problem of implementing them is the ‘challenge’.

    The government seems busy fighting each other, polishing their party ideals, and looks like forgot the early reason to be there.

    Maybe is because that reason has changed, somehow. Or because having high tech communication sets up a false reality and makes it look like is in efficient ‘auto pilot’ mode.

    All these happening is making the public feel like we are not wanted, we are in the leadership’s way, and it really does not matter what good citizen and hard working and honest person you are, or how educated you are. This last is a worst case: too disrespectful of the real and valuable education and money invested in it. What seems to be wanted from this last group is that you have to mirror the image of a smiley and drooling wolf to be respected.

    So change is sought, I wonder if it will happen.

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  • Perception

    The West is at the cross roads of worthwhile existence,or absolute decadence and decay.The few are now raping the many and thus we are all on the path to destruction.Once the parasite sucks the last vestiges of life from the host,then the whole system fails.

    Real weath exists in the minds and aspirations of your people.You cannot monetorise trust,repect,truth or integrity.

    The West has lost the plot and our leaders like Obama,Brown etc,betray us all.

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  • Jackson

    See: “Fall of the Republic” I’m not a real fan of Alex Jones,but this has very credible commentary and is executed brilliantly.There is no hype and is a serious expose of the debacle we are in now.

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  • Mladen

    Well, inflation is something which looks like as not being tracked correctly in States for certain, however according to many sources i.e. Cost of living in United States, US has among highest purchasing power in the world. So people from US should stop complaining.. and realize that 10% of unemployment is much lower than 20% in Spain or 23% in Serbia….

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  • Jackson

    A Govt big enough to satisfy most of your needs,is powerful enough to take everything you have.They are doing it now!

    Part of this Govt is the US Federal Reserve.They are the unelected Govt and we are fast approaching an era not unlike the middle ages, whereby the masses owned no land or capital and only worked for their masters for the right just to exist.

    They are using the ruse of Global Warming/CO2 pollution to achieve their aims.CO2 levels have been 18 times greater than present day concentrations and the earth has experienced ice ages.Where are the long term scientific studies?

    It is totally immoral and unjust.We must fight this to the bitter end.

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