Ron Paul: Why the Government Lies About Social Security




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.

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289 Comments:

  1. 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

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  2. 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

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  3. 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

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  4. 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!

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  5. 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!!!!!!!!!

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  6. Ron Paul telling it just how it is,as always. Ron Paul 2012

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  7. that's a horrible idea

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  8. that's a horrible idea

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  9. In 1965 Congress passed a little known law allowing citizens of certain religions to opt out of Social Security. You must be Amish, Mennonite, Anabaptist or part of a very small religious sect and can prove that your group has been against SSI since 1950. You also need to file IRS form 4029.

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  10. In 1965 Congress passed a little known law allowing citizens of certain religions to opt out of Social Security. You must be Amish, Mennonite, Anabaptist or part of a very small religious sect and can prove that your group has been against SSI since 1950. You also need to file IRS form 4029.

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  11. Bullshit! This whole government cover-up over Social Security is a national tragedy! These motherfuckers stole the peoples Retirement/Disability money! Now they want to claim that Social Security is an entitlement how fucking arrogant of them! Social security is a retirement plan that we all paid into for years. There should be plenty of money in there but they stole it to pay for other things! So what do they do? They blame the disabled and the elderly how pathetic! We should sue the them!

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  12. Phil E. Cognitio

    Keynankeys1960, if the Republic of the U.S.A. ultimately fails, it will probably be due to individuals who harbor the false belief that they are morally entitled to cast their votes as you would -- to politically empower the government to continue to steal from future generations in order to compensate you for the losses you have incurred as as a consequence of your having been victimized by Uncle Sam’s ponzi scheme.

    You and I are both the victims of theft, the thief has already spent our money, the thief is flat broke, and the thief has no means of recovering the squandered funds other than to steal from our grandchildren. That's a fact, just as it's a fact that 2 + 2 = 4.

    Apparently you prefer to vote for a politician who will tell you that 2 + 2 = 5. Apparently you choose to believe that 2 + 2 = 5, so that you can pretend that you are not an advocate of the immoral victimization of our grandchildren.

    Politicians like Newt Gingrich are making it clear that they are willing to lie to you -- they are willing to brand as "too radical" any politician who is honest enough to tell you that 2 + 2 = 4.

    You have the right to hold your false belief and "go quietly into the night." However, you do NOT have any right to hold your false belief and act on it. You do not have the right to become a thief just by having been a victim of theft yourself and having chosen to believe that 2 + 2 = 5.

    Unless you and others who share your false belief either "go quietly into the night" or else renounce your false belief and shed the light of day on those who would steal from our grandchildren by perpetuating Uncle Sam's role as thief in chief, then the prospect of the downfall of the republic loams ominously on the horizon.

    If you persist in your attempts to recover your losses by voting for politicians who would perpetuate the governments role of stealing from our grandchildren, I and our grandchildren will not go quietly into the night. If you are joined in your persistence by a democratic majority, the Republic will fall and the blood of patriots will be on your hands.

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  13. keymankeys1960

    . WE WILL NOT GO QUIETLY INTO THE NIGHT!! YOU JUST LOST ANOTHER VOTE !
    If the government cannot give me what they have said is mine all these years I have paid into it then they can give me a cash sum offer voted on by the people.

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  14. No we don't need to steel from our grandchildren.
    Honest Government has checks and balences. Those who have
    over the years stolen from SS should have to repay it with
    penilitys. That is, both those who as Representatives voted
    or signed for that money to be taken, and from those who
    directly benifited from the taking of the money.

    Forget about Uncle Sam, let's get the cartoons (legal lies)
    out of the picture.

    Secondly, I will agree 100% with giving up SS as soon as all
    Politions give up their Retirement Benifits. Retirement Benifits
    that are way better then any of us that pay for such, could
    ever dream of getting

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    • Firstly, neither those who have stolen or borrowed from the SS "trust fund" nor those who have been the recipients of the stolen proceeds have the capacity to repay it. Let's face facts. We've been victimized by deadbeat thieves. Suing deadbeats for damages would yield little more than suing Nature for damages cause by natural disasters.

      Even if the U. S. Government were to divest itself of all of its real assets and to cease all but the minimal constitutionally required functions of government, victims of the Social Security and Medicare schemes would still be standing in line behind the heirs/descendants of those bound in chattel slavery (at least from the ratification of the Constitution to the ratification of the Thirteenth Amendment), whose claims against the government take precedence.

      Secondly, as for your setting conditions under which you would "agree 100% with giving up SS" (or Medicare) claims, given the facts of the government's negative net worth and lack of earning capacity, one should only take your assertion of those conditions as a threat (albeit unwitting) against our grandchildren.

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  15. I love seniors and I think the social security program is a great "idea" but it is not working anymore and this is probably the last generation of seniors that had the good sense to own homes, save for retirement and be prepared on their own for their later years so if we're going to end the system this is probably the best time. People from the generation above me and all the way down are in too much debt to even consider saving for retirement so it would be nice to have the option to opt out of social security to pay off some of this debt and think about the future. Sad...but true.

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  16. There was a social security trust fund! I paid into the system for many years and now that I need the money its not there whatever we'll just rob the damn rich and get our damn money!!! I paid manys way while I worked and now that Im disabeled its my turn that is the way it was set up I dont get why these tea party dumb asses dont get that lol. Take my cheese and Ill be at your door I promise!!!

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    • Hypatia Alexandria

      Your cheese has already been squandered by Uncle Sam. It's gone!!

      Being a disabled victim of a ponzi scheme doesn't entitle you to become a thief or a receiver of stolen goods.

      Keep your hand's off our grandchildren's cheese!

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  17. Dr. Paul, after watching an interview with Obama's aunt I wondered how she was able to live in government housing receiving Social Security disability for many years without a SSN, so I went to the Social Security Admin website and learned that the SSA issues 3 types of cards. the third type is "not valid for employment: and is issued to people:
    * Who are lawfully admitted to the United States without work authorization from DHS, but with a valid nonwork reason for needing a Social Security number; or
    * Who need a number because of a federal law requiring a Social Security number to get a benefit or service.

    Doesn't the "or" preceding the second type of person this card is issued to give illegal aliens access to Social Security cards to get government benefits? And since when does any foreigner who is not a legal resident of the United States need a Social Security card for a purpose other than work? Has our government sold us as slaves who exist for the sole purpose of working to support foreigners?

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  18. Dr. Paul, after watching an interview with Obama's aunt I wondered how she was able to live in government housing receiving Social Security disability for many years without a SSN, so I went to the Social Security Admin website and learned that the SSA issues 3 types of cards. the third type is "not valid for employment and is issued to people

    *Who are lawfully admitted to the United States without work authorization from DHS, but with a valid nonwork reason for needing a Social Security number; or
    * Who need a number because of a federal law requiring a Social Security number to get a benefit or service.

    Doesn't the "or" preceding the second type of person this card is issued to give illegal aliens access to Social Security cards to get government benefits? And since when does any foreigner who is not a legal resident of the United States need a Social Security card for a purpose other than work? Has our government sold us as slaves who exist for the sole purpose of working to support foreigners?

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  19. You want to get rid of Social Security, buy me out. Give me back every penny that I have paid over the last 30 years, with interest, then you can do what you want.

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    • Hypatia Alexandria

      HemiHead66:

      Every penny that you paid over the last 30 years, with interest?

      Had your money not been collected by the government as payroll taxes, had you invested it instead in a private fund, expecting to collect it in your retirement years, and had the private fund managers fraudulently squandered your money elsewhere and had no honest means of ever recovering the money they lost, then neither they nor you would have have any moral right whatsoever to steal from your grandchildren (or rob the rich) in order to cover your living and medical expenses? To survive, you would simply have to come out of retirement and get a job (the best job you could handle given your physical condition) or rely on charity (private, voluntary charity).

      Being a victim of Uncle Sam’s ponzi scheme doesn’t entitle you, regardless of your age, to steal from your grandchildren (or rob the rich)!

      Wake up and smell the coffee! You were robbed! So was I. The thief was a deadbeat, Uncle Sam, who has no means of earning an honest dime. Government doesn't produce wealth; it only steals wealth and buys the favor of those of who are willing to be the receivers of stolen wealth.

      Being a victim doesn't entitle you to steal from innocent victims in order to recover your losses; it doesn't entitle you to hire a back alley thug to steal for you; and it doesn't entitle you to vote for beltway politicians who promise to hire a thug carrying a badge to steal on your behalf.

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  20. I'm so sick of hearing his bullshit. There is a way to fix Social Security and Medicare, get rid of this fucking Mafia Govt. that has been robbing the shit out of us. These fuckers took Defense spending from 200+ billion a year before those bogus attacks on 9,11, to 1+ trillion a year today. That's where our retirement is being spent, on crony contracts for their fucking friends. And on massive tax breaks for the rich. Fuck, those multi-nationals don't even pay taxes. Time to clean house!

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