Think you are entitled to the amount of money you paid into Social Security? Think again. Think Democrats are protecting your benefits while Republicans want to cut them? Think again.
Watch John Stossel last night or read his latest column?
Since America is on the road to bankruptcy, we’ve got to make some changes. What would you do?
The Peter G. Peterson Foundation gave $200,000 to six think tanks to write budget proposals. The money went to the conservative American Enterprise Institute and Heritage Foundation; the “liberal” Center for American Progress, Economic Policy Institute and Roosevelt Institute Campus Network; and the Bipartisan Policy Center.
The liberal budgets raise spending and taxes, cut military spending, and keep entitlements. The conservative budgets keep military spending but just trim entitlements, and reform the tax code.
May 1 marks the 30 years since Chile became the first nation to privatize its social security system. By turning workers into investors, the move solved an entitlement crisis much like the one America faces today.
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Instead of paying a 12.4% Social Security tax as we do here, Chilean workers must pay in 10% of their wages (they can send up to 20%) to one of several conservatively managed and regulated pension funds. From the accumulated savings, they get a life annuity or make programmed withdrawals (inheriting any funds left over).
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In 2005, New York Times reporter John Tierney worked out his own Social Security contributions on the Chilean model and found that his privatized pension would have been $53,000 a year plus a one-time payout of $223,000. The same contributions paid into Social Security would have paid him $18,000.
Tierney’s example show how much we Americans are getting screwed by Social Security and the politicians who defend it.
WASHINGTON (AP) – Sick and getting sicker, Social Security will run at a deficit this year and keep on running in the red until its trust funds are drained by about 2037, congressional budget experts said Wednesday in bleaker-than-previous estimates.
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“Its’ an IOU that is backed by Treasury bonds and the faith and credit of the United States government,” said Sen. Bernie Sanders, I-Vt. “It is the same faith and credit that enables us to borrow from rich people and from China and from other countries. As you well know, in the history of this country, the United States has never defaulted on one penny owed to a creditor.”
Very reassuring words from a fiscal conservative!
Economists are the real “Party of No.” They keep saying that there is no such thing as a free lunch — and politicians keep on getting elected by promising free lunches.
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We are currently seeing what happens, in fierce riots raging in various countries in Europe, when the money runs out and the brutal truth is finally revealed, that there is no free lunch.