Why the Government Lies About Social Security
by Ron Paul
Perhaps the biggest media story of 2010 was the influence of Tea Party voters on the Congressional landscape. The new Congress comes to Capitol Hill with a mandate to end profligate spending and restore fiscal sanity in Washington, we are told. But when the House and Senate convene in January the newly elected members will face tremendous pressure to maintain spending levels for entitlement programs. Even the most modest proposals to trim Social Security or Medicare spending will be met with howls of indignation and threats of voter revolt. Legislators who propose any kind of means testing or increased retirement ages can expect angry visits from senior citizens and lobbyists ready to fund a candidate back home who supports the status quo.
But millions of Americans now realize that the status quo is an illusion that will not last even another 10 or 20 years. The federal government cannot continue to spend a trillion dollars more than it collects in revenue each year because we are running out of creditors. Fiscal reality is setting in and the consequences may be grim, even if Congress finds the courage to take decisive action now.
Courage begins with a commitment to see things as they are, rather than how we wish they were. When it comes to Social Security we must understand that the system does not represent an old age pension, an insurance program or even a forced savings program. It simply represents an enormous transfer of payment with younger workers paying taxes to benefit the other beneficiaries. There is no Social Security trust fund and you don’t have an account. Whether you win or lose the Social Security lottery is a function of when you happen to be born and how long you live to collect benefits. Of course young people today have every reason to believe they will never collect those benefits.
Notice that neither political party proposes letting people opt out of Social Security, which exposes the lie that your contributions are set aside and saved. After all, if your contributions are really set aside for your retirement, the money is there earning interest, right? If your money is in your account, what difference would it make if your neighbor chooses not to participate in the program?
The truth of course is that your contributions are not put aside. Social Security is a simple tax. Like all taxes, the money collected is spent immediately as general revenue to fund the federal government. But no administration will admit that Social Security is nothing more than an accounting ledger with no money. You will collect benefits only if future tax revenues remain high. The money you paid into the system is long gone.
My hope is that at least some members of the new Congress will cut through the distortions to see Social Security as it really is. The best way to fix the impending Social Security crisis is also the simplest: Allow younger individuals to opt out of the program and use their tax savings to invest privately as they see fit. This is the true private solution. Your money has never been safe in the government’s hands and it never will be.
Processing your request, Please wait....
The wording wasn’t 100%. Fine. “I cannot guarantee that those checks go out on August 3rd if we haven’t resolved this issue, because there may simply not be the money in the coffers to do it.”
The US government is broke and can’t make good on any promise. You can demagogue all you like, but it’s not going to change that fact. Any dollar spent on SSI is money taken from someone else, and who knows what that dollar may have been spent on. It may have been MORE noble.
Report this comment
Like or Dislike:
0 
0
Yah that doesn’t say what you said it says, sorry.
And like I said, every dollar spent on SSI there’s a net stimulus effect and SSI could be funded indefinitely by removing the capital gains cap or by redirecting some of the mostly wasted military funding. On the one hand we could continue digging ditches just to fill them up, on the other we could provide food and housing for our elderly, disabled, and veterans.
Or we could have social darwinism.
Report this comment
Like or Dislike:
0 
0
Yah that doesn’t say what you said it says, sorry.
And like I said, every dollar spent on SSI there’s a net stimulus effect and SSI could be funded indefinitely by removing the capital gains cap or by redirecting some of the mostly wasted military funding. On the one hand we could continue digging ditches just to fill them up, on the other we could provide food and housing for our elderly, disabled, and veterans.
Or we could have social darwinism.
Report this comment
Like or Dislike:
0 
0
Search “politifact obama july 12 2011″ on google. It’s the first one to come up.
Report this comment
Like or Dislike:
0 
0
Both
Report this comment
Like or Dislike:
0 
0
Both
Report this comment
Like or Dislike:
0 
0
I’m lying or Obama is lying?
Report this comment
Like or Dislike:
0 
0
Ok 3 things
1: That’s a Lie
2: I don’t care about Obama
3: We spend 59% of our budget on the US Military, just 9% of that could cover SSI indefinitely, alternately removing the limit on the capital gains tax could eliminate the problem, and for every dollar spent on SSI there’s a net stimulus effect.
SSI is not the cause of our economic problems.
Report this comment
Like or Dislike:
0 
0
Ok 3 things
1: That’s a Lie
2: I don’t care about Obama
3: We spend 59% of our budget on the US Military, just 9% of that could cover SSI indefinitely, alternately removing the limit on the capital gains tax could eliminate the problem, and for every dollar spent on SSI there’s a net stimulus effect.
SSI is not the cause of our economic problems.
Report this comment
Like or Dislike:
0 
0
Obama came out and admitted there is no social security fund when he said that if we don’t increase the debt ceiling and borrow more money from China, social security payments wouldn’t be made.
Report this comment
Like or Dislike:
0 
0
It’s not okay for the government or it’s officials to lie. USC Title 18 Chapter 47 says if anyone who knowingly lies is subject to shall be fined and/or imprisoned up to 5 years. The worst part is almost nobody knows this or enforces it. You just have to prove that they lied and people are scared to face the government.
Report this comment
Like or Dislike:
0 
0
Don’t be fooled by Ron Paul. He’d literally have you throw your own grandma on street. He is no hero just cause he harps on Fed. The REAL enemy is vacuum of government, when the Global Corp. Controllers send their own industrial military into your house, and total control is by them, not govt. Corrupt govt. is just helping them. Make a Firewall against Corp. Contributions, Max it out at $500, same with lobbies. Corp. Lobbies should be illegal. It is Military-INDUSTRIAL complex, not govt.
Report this comment
Like or Dislike:
0 
0
Everyone please write RON PAUL 2012 on ALL bills you have. It WILL make a difference.
»crosslinked«
Report this comment
Like or Dislike:
0 
0
Everyone please write RON PAUL 2012 on ALL bills you have. It WILL make a difference.
Report this comment
Like or Dislike:
0 
0
Ron Paul lies about SSI, thus proving his statement that Government Lies About Social Security
Report this comment
Like or Dislike:
0 
0
Ron Paul lies about SSI, thus proving his statement that Government Lies About Social Security
Report this comment
Like or Dislike:
0 
0
Let’s see if I got this straight. It’s against the law to tell a government official a lie, but it’s ok for the government to lie to “we the people”….constantly!
What kind of double standard is this? The truth is that we’re not really free, and the American way is not really about liberty and justice for all; that’s just another lie.
Our entire society is based on lies and UN-truth, and they’re never going to admit ONE lie because they know they’ll have to answer to all of the other lies.
Report this comment
Like or Dislike:
0 
0
Let’s see if I got this straight. It’s against the law to tell a government official a lie, but it’s ok for the government to lie to “we the people”….constantly!
What kind of double standard is this? The truth is that we’re not really free, and the American way is not really about liberty and justice for all; that’s just another lie.
Our entire society is based on lies and UN-truth, and they’re never going to admit ONE lie because they know they’ll have to answer to all of the other lies.
Report this comment
Like or Dislike:
0 
0
…google form 4029. at this point in the game ..this is ones only option today ..as we speak.
Report this comment
Like or Dislike:
0 
0
January 20, 2013
The END of Corruption!
Report this comment
Like or Dislike:
0 
0
It seems some viewers have it partially correct; There is no mention of abolishing Social Security, only improving it and allowing yourger people to opt out. Remeber, you don’t have to opt. I am assuming it is going to be reorganized or protectected from the current abuses so that it can work like it was initially intended to be. I am assuming that if our America is restored and our tax revenues improve there wil be no problem. Rember there are always forms of taxes some good and some not good. I am assuming Dr. Paul will be taking all of this in to consideration and I think that is what this message is all about. How Social Security will be affected is something we will find out in the not so far future, but my beleif is that what ever solution Dr. Paul impliments will be the best one as he is always looking out for the well being of the people. I have to trust him that it will be the right thing. So do you. If you think I have it all wrong and my intepretation is all wrong, please let me know, I am the last person that wants to be clueless, how ever I do think my interpretation is some what correct. Jen
Report this comment
Like or Dislike:
0 
0
I another lifitimate concern from one of the Bloggers was about opting out and saving. I can certainly understand your concern about your savings. I have been in the financial industry for many years and I support Ron Pauls END THE FED. I believe improvements/changes in our monetary policies along with getting rid of income tax, will give us more money to save, a more stable currency, interest rates returning to healthy normal levels, will help improve the economic envronment greatly including jobs of course, thus giving a person a far better likelyhood that they can reach a financial goal. Right now everything is such a mess there is not much you can count on. I am a middle aged person and a business proffesional yet my dollars are worth so much less, as is my house and my portfolio grown is hard to achieve given the volitile stock market and global fears. I think any changes Ron Paul achieves will accomplish the positives mentioned above.
Report this comment
Like or Dislike:
0 
0
How could they not? What we have now is definately not working. Have faith my fellow blogger If RON PAUL is our president in 2012 you will have less to worry about than you can imagine, and you will know what you can count on and soon. Media Analysts are so off the mark, the majority of the time. Being in the Financial industry for so long I have seen how they guess report time and time again and it DOES affect the market and people’s willingness to invest which is just another drag on the economy. We have support RON PAUL, spread the word and continue to have hope and our lives along with many others will improve. We have to be patient
Jen
Report this comment
Like or Dislike:
0 
0
Abolishing SSI would result in the deaths of millions, increased desperation and competition in the labor market (there is already mass unemployment and more people than there will ever be jobs), and it would bankrupt many small businesses putting millions out of jobs especially land lords and small grocers, and it would leave hundreds of millions of Americans uninsured.
Ron Paul is a Gold Bond Millionaire he’ll never have to worry about his retirement.
Report this comment
Like or Dislike:
0 
0
Abolishing SSI would result in the deaths of millions, increased desperation and competition in the labor market (there is already mass unemployment and more people than there will ever be jobs), and it would bankrupt many small businesses putting millions out of jobs especially land lords and small grocers, and it would leave hundreds of millions of Americans uninsured.
Ron Paul is a Gold Bond Millionaire he’ll never have to worry about his retirement.
Report this comment
Like or Dislike:
0 
0
Why just like communists you may ask? Ron Paul’s economic philosophy is the opposite, but in terms of the reliance of his philosophy on the reason and fairness of a mostly apathetic and selfishly disinterest species he falls into the same damn trap.
Report this comment
Like or Dislike:
0 
0
Why just like communists you may ask? Ron Paul’s economic philosophy is the opposite, but in terms of the reliance of his philosophy on the reason and fairness of a mostly apathetic and selfishly disinterest species he falls into the same damn trap.
Report this comment
Like or Dislike:
0 
0
Ron Paul hates social security because he’ll never have to worry about his retirement, he’s a wall street gold bond business tycoon, he’s got millions to retire on. Meanwhile you’re all going to get old, and any one of you could be rendered infirmed or disabled due to injury or illness, and most of you can’t afford to put money back because you’re living from paycheck to paycheck.
Ron Paul is an economic social darwinist who would have you rely on churches and charity, just like communists.
Report this comment
Like or Dislike:
0 
0
Ron Paul hates social security because he’ll never have to worry about his retirement, he’s a wall street gold bond business tycoon, he’s got millions to retire on. Meanwhile you’re all going to get old, and any one of you could be rendered infirmed or disabled due to injury or illness, and most of you can’t afford to put money back because you’re living from paycheck to paycheck.
Ron Paul is an economic social darwinist who would have you rely on churches and charity, just like communists.
Report this comment
Like or Dislike:
0 
0
This was a very disturbing read which begs the question; Without Social Security, what’s to become of our seniors? How will they survive?
Ok, now that that’s out of the way, let’s tackle the “opt out” statements.
A person opts out at age twenty and opens a bank account. Every week he deposits one hundred dollars. What happens when he turns sixty-five? He has a nice little nest egg with interest compounded quarterly. Right? WRONG!!!!
Inflation eats it all up and he gets taxed on the interest paid on the inflated dollars when he withdraws it.
Point of interest: One hundred dollars today is worth less than ten dollars in 1911 dollars.
Inflation is the ultimate tax. You can never recover from it.
Back to the origional question. What happens to our seniors? Well, if you have family, perhaps they will support you. If not, hell they will not even be able to buy cat food. Maybe there is still some Jim Jones kool-aid left around.
Report this comment
Like or Dislike:
0 
1
Thats shocking, the Government never lies, they just never tell you the truth lol.
Seriously what is with Social security, border security it’s always so Melodramatic on titles.
How about Social care allowance, or border maintenance. I think some folks need to take a vacation & chillout.
Go Ron Paul
Report this comment
Like or Dislike:
1 
0
I’m 28, I’m disabled, and I’m collecting SS. This extremist view of SS is bullshit…I urge you all to pay a visit to your local social security office and see what they have to offer for yourselves.
Although, I do believe you should have the option to opt out of SS if you plan to never use it.
But the abolishment of SS would be the makings of a huge disaster which would send millions of disabled/elderly persons on to the streets thus creating a massive crime wave& overwhelming homelessness
Report this comment
Like or Dislike:
0 
0
I’m 28, I’m disabled, and I’m collecting SS. This extremist view of SS is bullshit…I urge you all to pay a visit to your local social security office and see what they have to offer for yourselves.
Although, I do believe you should have the option to opt out of SS if you plan to never use it.
But the abolishment of SS would be the makings of a huge disaster which would send millions of disabled/elderly persons on to the streets thus creating a massive crime wave & overwhelming homelessness
Report this comment
Like or Dislike:
0 
0
I’m 28, I’m disabled, and I’m collecting SS. This extremist view of SS is bullshit…I urge you all to pay a visit to your local social security office and see what they have to offer for yourselves.
Although, I do believe you should have the option to opt out of SS if you plan to never use it.
But the abolishment of SS would be the makings of a huge disaster which would send millions of disabled/elderly persons on to the streets thus creating a massive crime wave& overwhelming homelessness
Report this comment
Like or Dislike:
0 
0
I’m 28, I’m disabled, and I’m collecting SS. This extremist view of SS is bullshit…I urge you all to pay a visit to your local social security office and see what they have to offer for yourselves.
Although, I do believe you should have the option to opt out of SS if you plan to never use it.
But the abolishment of SS would be the makings of a huge disaster which would send millions of disabled/elderly persons on to the streets thus creating a massive crime wave & overwhelming homelessness
Report this comment
Like or Dislike:
0 
1
Let’s call the opt-out of SS to invest privately exactly what it is:
Another bailout for Wall Street. You remember those folks don’t you?
The ones that ruined the economy three years ago with their gambling on derivatives and “speculating” on oil.
George “Dumbya” Bush found out that’s a politically toxic idea. No way it’s going to happen.
And just how the hell is something I contributed an “entitlement”?
It’s not in any way,shape, or form!
Report this comment
Like or Dislike:
2 
2
like we can trust wall street with social security???!!!!!!hell they want to short sell it and ron paul is total fucking scumbag for even proposing it!!he is only now paying for his own healthcare and was getting free healthcare paid by our taxes for decades!gop are just slime,greedy,evil,SLIME!!!dems really fucked up in 2008.if they would have focused on jobs and taxes and not obamacare this shit would not be happening.some change hussein sotero!!!!!!!!!
Report this comment
Like or Dislike:
1 
2