May Day, May Day. . . Yes, that is correct, I said May Day. For some it is the international workers labor day - a holiday that seems benign because it celebrates the laborers of the world; however, it is a day of gloom. Why? Because Socialists and Communists have made it a day to cry out against progress, individualism, freedom, prosperity, America and Capitalism. I said May Day twice, because this is an EMERGENCY. Our values and principals are under attack, not from foreign enemies but from domestic ignorance. Americans must celebrate Capitalism, yet most of us seem to shun it. Some say they support it, but speak of socialist ideals. The two are not compatible. Capitalism is the only moral economic system, hence the reason our founding fathers chose it as the economic system of the new country that was forged in the name of Liberty.
Wake up, America! We have a chance to save the American dream. All we have to do is remember what that is and work, logically towards it. Although the scope of this subject is huge, I shall focus on how we can help realize the American dream by un-forming, rather than re-forming, Social Security. Why un-form it? Because it is slowly draining the life-blood from our labor force and our capital growth. Our economy is ours collectively because we choose to interact with one another in a free market. Our government's duty is to ensure that the market remains free (especially by keeping its own hands off), protect our property rights and settle disputes in a civilized manner. We cannot save our economy by asking our government to force it to grow. We have to allow the market to grow through the employment of that most amazing motive - profit.
Our government should be in the business of governing, as in administration. If our government conducted its sole and primary function (save for defense) it would only incur administrative expenses leaving the remainder of the tax dollars as capital in the market. This will cause the economy to grow and eliminate the need for Social Security.
How do we go about this? First, we must recognize that many have paid into a system that was designed to provide a minimum standard of living or a "safety-net" for those who, for whatever reason, were no longer earning income. This was never a retirement fund. The first generation that benefited from the creation of Social Security is no longer with us and therefore cannot be factored into the plan. We must accept the fact that our elected officials spent money we did not have and we are going to have to pay for it. All of us. It is unfair, it isn't fun, but it is our mess and we must fix it. Remember we elect them; therefore we are responsible for their actions.
The following are the steps that are necessary to un-form the system. Please bear in mind that these are general ideas and directives. I do not want to spark a debate about the exact dollar amounts and time frames. Those details are for actuaries, accountants, lawyers and Congress to figure out:
1. All COLA adjustments must stop immediately.
2. A moratorium on all new disability payments. (disability insurance, AD&D;, etc. are available from the private sector and are relatively affordable)
3. Payments to retirees that are not in dire need of the benefits will desist.
4. Payments to disabled Americans that are not in dire need of the benefits will desist.
5. All Americans born since 1945 are ineligible for Social Security benefits.
6. All eligible Americans born prior to 1934 will be paid the benefits earned, without adjustments for inflation or cost of living, for the remainder of their lives.
7. All eligible Americans born between 1934 and 1944 will be paid benefits without adjustments until 2020.
8. The existing funds in the Social Security trust fund will be used to pay these benefits. If these funds prove to be inadequate then the remainder of the funds will have to be diverted from other social welfare programs or Congressional and Executive salaries (for elected officials).
This will ensure that we will eliminate the system completely within twenty years. It allows those who have paid the longest to receive some benefit and the Americans born since 1945 should have enough saved to allow them to live comfortably in retirement. If they have not saved enough, they will have to work beyond retirement. Based on current life expectancy statistics and the general affluence and health of the Baby Boom generation that should not be too difficult. As for the Gen Xers, we were going to get a raw deal anyway, now we just have to deal with less of a raw deal, sooner.
In order for employers to retain employees and reputations they will be required to use the portion of FICA taxes they were paying to fund 401(k) and other retirement annuity and profit-sharing plans. This requirement will not come from the government but from the working class, the market. By owning more stock in corporate America maybe we would feel more involved and try not to persecute business for our woes. Small businesses will benefit by having more growth capital, after all small business keeps America working.
This proposal may come across as drastic. It is. So is our situation. Look at the world around you . . .more and more countries are celebrating this Socialist-Communist holiday. More and more Americans are afraid to be Capitalists and entrepreneurs; feel guilty to admit that they are motivated by profit; are embarrassed to want more for themselves and their children. Why? These are the principals that built this country. These are the motivating forces that create new wealth and prosperity. The current Social Security system quells these fine America principals. If we eliminate it in a fair and equitable manner we will save this economy, this country and ourselves. America without a Social Security system will be a free nation once again. A nation that allows those of us who missed it the first time a chance at that glorious, old-fashioned American dream.
